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EU to Telecoms companies: Try charging Google and we’ll take action

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Re: EU to Telecoms companies: Try charging Google and we’ll take action

#11
The need for gov't intervention is symptomatic of a lack of competition. This is the issue that should be addressed.

In a competitive market, an ISP wouldn't be able to pull this off because its customers would revolt if services that they cared about weren't there.

Re: EU to Telecoms companies: Try charging Google and we’ll take action

#13
post #9
post #4

I don't understand the argument the telecoms are trying to make here. On the ISP side, the end user has already paid for the bandwidth. Google, or anyone else they're engaging in data transfer with has also paid some network operator for bandwidth. Said network operators have some sort of peering agreement. Under what theory could it possibly be fair to charge Google at both ends?

Google, or anyone else they're engaging in data transfer with has also paid some network operator for bandwidth. Google has no-charge peering agreements with the companies which are complaining. Google's traffic is so vast that a major carrier which doesn't peer with Google would endanger other high-volume peering agreements or (less likely) pay more in transit charges to reach Google. Tier 1 carriers play this game…

That’s interesting! Can’t they bring that up the next time they discuss their peering agreement with Google? Would they really stand no chance of negotiating a better deal – even if enough of them work together?

And why are they making this particular argument they are making now and don’t demand something which might sound more reasonable like regulating the market of peering agreements or something?

Re: EU to Telecoms companies: Try charging Google and we’ll take action

#14
post #4

I don't understand the argument the telecoms are trying to make here. On the ISP side, the end user has already paid for the bandwidth. Google, or anyone else they're engaging in data transfer with has also paid some network operator for bandwidth. Said network operators have some sort of peering agreement. Under what theory could it possibly be fair to charge Google at both ends?

The other part I don't understand is how the telecoms think they're actually going to get Google to pay this in the first place. If they tell Google they won't carry the Google traffic over their connections if they don't pay (sounds a bit like blackmail?) I'm sure Google would just say "Ok, see you later!". The telecoms that do that would just end up losing customers because really, who would want a connection that'…

While I tend to agree, that tactic can backfire if the ISP's get together and present a unified front. If Google is only avail on 1/5 of the major ISP's, Yahoo or whoever pays up will see a crapload of new business. It's much easier for an end user to simply switch to using Yahoo! than to switch ISP's (for example I basically have no other choice for high speed other than Comcast)

Re: EU to Telecoms companies: Try charging Google and we’ll take action

#16
post #8
post #4

I don't understand the argument the telecoms are trying to make here. On the ISP side, the end user has already paid for the bandwidth. Google, or anyone else they're engaging in data transfer with has also paid some network operator for bandwidth. Said network operators have some sort of peering agreement. Under what theory could it possibly be fair to charge Google at both ends?

That’s the strange logic of ISPs. They basically don’t want to be reduced to dumb pipes because that’s low margin and not really a very exciting business model. I guess in their dreams they would charge content providers (“You want to get your content to our customers? Pay!”) and they would also charge customers based on the content they want to see (“You want access to content from this one content provider? Pay!”).…

Dumb unexciting business models can still be very profitable. For example: toll booths on highways.

Re: EU to Telecoms companies: Try charging Google and we’ll take action

#17

Earlier quoted context omitted.

The other part I don't understand is how the telecoms think they're actually going to get Google to pay this in the first place. If they tell Google they won't carry the Google traffic over their connections if they don't pay (sounds a bit like blackmail?) I'm sure Google would just say "Ok, see you later!". The telecoms that do that would just end up losing customers because really, who would want a connection that'…

While I tend to agree, that tactic can backfire if the ISP's get together and present a unified front. If Google is only avail on 1/5 of the major ISP's, Yahoo or whoever pays up will see a crapload of new business. It's much easier for an end user to simply switch to using Yahoo! than to switch ISP's (for example I basically have no other choice for high speed other than Comcast)

Google is so ubiquitous to people's web use now it would only take one to not join the filtering for the idea to collapse.

XYZ ISP would have a killer selling point ("we have Google!") and would almost certainly make a killing...

Re: EU to Telecoms companies: Try charging Google and we’ll take action

#18

Earlier quoted context omitted.

The other part I don't understand is how the telecoms think they're actually going to get Google to pay this in the first place. If they tell Google they won't carry the Google traffic over their connections if they don't pay (sounds a bit like blackmail?) I'm sure Google would just say "Ok, see you later!". The telecoms that do that would just end up losing customers because really, who would want a connection that'…

While I tend to agree, that tactic can backfire if the ISP's get together and present a unified front. If Google is only avail on 1/5 of the major ISP's, Yahoo or whoever pays up will see a crapload of new business. It's much easier for an end user to simply switch to using Yahoo! than to switch ISP's (for example I basically have no other choice for high speed other than Comcast)

That sounds massively anti-competitive and probably very illegal.

Re: EU to Telecoms companies: Try charging Google and we’ll take action

#19
post #8

Earlier quoted context omitted.

That’s the strange logic of ISPs. They basically don’t want to be reduced to dumb pipes because that’s low margin and not really a very exciting business model. I guess in their dreams they would charge content providers (“You want to get your content to our customers? Pay!”) and they would also charge customers based on the content they want to see (“You want access to content from this one content provider? Pay!”).…

Dumb unexciting business models can still be very profitable. For example: toll booths on highways.

In the EU (At least in the UK), you have vast competition amongst ISPs with everyone undercutting everyone else. There's probably around 100 ISPs I could choose from to get my ADSL line from.

I think the toll booth would fit in more with some US areas where there's only 1 ISP available (AFAIK).

Re: EU to Telecoms companies: Try charging Google and we’ll take action

#20
post #8
post #4

I don't understand the argument the telecoms are trying to make here. On the ISP side, the end user has already paid for the bandwidth. Google, or anyone else they're engaging in data transfer with has also paid some network operator for bandwidth. Said network operators have some sort of peering agreement. Under what theory could it possibly be fair to charge Google at both ends?

That’s the strange logic of ISPs. They basically don’t want to be reduced to dumb pipes because that’s low margin and not really a very exciting business model. I guess in their dreams they would charge content providers (“You want to get your content to our customers? Pay!”) and they would also charge customers based on the content they want to see (“You want access to content from this one content provider? Pay!”).…

The cable and satellite TV companies are the closest comparison I can think of for an existing example of their dream model. And guess what? The experience is miserable for everyone except those raking in the money.
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