from the entitlement-mindset dept
The idiotic belief that content companies should be charged an additional "telco tax" to fund network upgrades has since wormed its way into pampered, duopoly telco board rooms worldwide. The latest case in point: Caribbean and South Pacific ISP Digicel has started blocking Google and Facebook ads from appearing on the company's mobile network in the apparent belief that the service provider is owed a slice of these companies' ad revenues. In a notice posted to the Digicel website, this move is framed as something that was motivated purely for altruistic, pro-consumer reasons:
"(Digicel is) deploying ad control technology at the network level on its networks across the globe to ensure a better experience for customers and to encourage the likes of Google, Facebook and Yahoo to help connect the 4.2 billion unconnected people across the globe. Ad control technology benefits both consumers and network operators alike. With ads using up as much as 10% of a customers’ data plan allowance, this move will allow customers to browse the mobile web and apps without interruption from unwanted advertising messages."What sweethearts. Of course, the notice then proceeds to make it clear what this is really about. And that's Digicel and billionaire owner Denis O'Brien's belief that they are owed a cut of content company ad revenue simply because content company traffic touches their network:
"Companies like Google, Yahoo and Facebook talk a great game and take a lot of credit when it comes to pushing the idea of broadband for all – but they put no money in. Instead they unashamedly trade off the efforts and investments of network operators like Digicel to make money for themselves. That’s unacceptable, and we as a network operator, are taking a stand against them to force them to put their hands in their pockets and play a real role in improving the opportunities for economic empowerment for the global population.”"O'Brien's been mentioned by Techdirt previously for attempts to sue satirists for so much as joking about him, so hopefully he doesn't take offense when I note that both he and Digicel are utterly full of crap here. The cornerstone of the ISPs' flimsy entitlement argument almost always involves claiming that companies like Google, Netflix, and others get a "free ride" on ISP networks. We've debunked this idea time and time again, even going so far as to urge these folks to pay Netflix's bandwidth bill for a month if they truly believe content companies don't pay for bandwidth and transit. Strangely, we've yet to be taken up on the offer.
Of course, the idea that Google, which is spending billions on wireless service and fiber to the home, "puts no money in" is laughable. Not only do these companies pay plenty for bandwidth, they own half-a-planet's worth of transit and content delivery networks at this point; and that's before you even get into their last-mile broadband efforts, where they're busy exploring everything from 3.5GHz wireless experiments to broadband by hot air balloon and drone in a quest to expand their global ad empires.
Of course, many of these efforts challenge the stranglehold legacy telecom companies have enjoyed for a generation or more, and the predominant response to this new economy evolution has been not to compete -- but to pout. Indeed, O'Brien's tirades are little more than the crying of a pampered child who is -- obviously for the first time in a long while -- being told he's not able to eat the entire carton of ice cream in one sitting.