Google Won't Pay Bell South 483
grandgator writes "Google has offered
a clear response to Bell
South's proposal to charge content providers an additional fee for access
to their network: They won't pay. In an email, Google's Barry Schnitt told the
folks at networkingpipeline:
'Google is not discussing sharing of the costs of broadband networks with
any carrier. We believe consumers are already paying to support broadband access
to the Internet through subscription fees and, as a result, consumers should have
the freedom to use this connection without limitations'"
Way to Stand up for us all (Score:5, Funny)
Re:Way to Stand up for us all (Score:4, Funny)
Re:Way to Stand up for us all (Score:4, Insightful)
Re:Way to Stand up for us all (Score:5, Interesting)
Re:Way to Stand up for us all (Score:2, Interesting)
Re:Way to Stand up for us all (Score:3, Interesting)
Re:Way to Stand up for us all (Score:3, Funny)
Thanks, but I hated it the first time they did it, when it was called CompuServ.
Re:Way to Stand up for us all (Score:5, Insightful)
Actually, if they are smart, they'll do the opposite. This is a huge opportunity for the cable companies, who don't have a vested interest to hold the voip down.
Re:Way to Stand up for us all (Score:4, Interesting)
You mean "to hold their voip down." Time warner is already pushing their own voip, and they'd probably be more than happy to degrade the service of anyone using any other voip provider.
Re:Way to Stand up for us all (Score:3, Insightful)
It becomes bad when service for those who don't pay the extra fee gets degraded on purpose.
That was however not what the article is about, this is about charging content providers for prefered handling. I can see why this is attractive at first glance to both telcos and cable companies (for different reasons somewhat), but is it attractive for subscribers?
Both telcos and cable companies shou
Re:Way to Stand up for us all (Score:4, Interesting)
Heh, and you can blame politics for that situation actually... kinda sad.
2 decades ago, I used to look at what the typical consumer could get from their telco in the USA with some envy. Things like local calls being effectively free (which made hanging out on a BBS all day long and such an option...), being able to go into a shop and buy yourself some random phone and connect it and the like..
Those things were virtually unheard of overhere in Europe. Local calls were and in cases still are charged per minute or per second even. Being able to connect my own equipment (legally that is) is also something that is 'relatively' recent.
Nowadays there seems to be little reason for envy. I have a wide choice in local providers now, even for the last mile (former national telco is forced to sell them off when the customer wants another provider), a wide choice of dsl providers, and with that amount of competition, also very decent prices (currently around the equivalent of $50 for 24mbit downstream, 1mbit upstream) and conditions (things like fixed IP, being allowed to run servers from your home connection etc are pretty standard), and, part of the cause of this, a local government that seems pretty much convinced that they should never again allow for a monopoly on a specific form of communications infrastructure.
Re:Way to Stand up for us all (Score:3, Insightful)
Right, so you'd prefer to see the internet transformed into TV 2.0 where the ISP's are the ones who decides what you should be able to watch and listen instead of f.ex. the record companies.
The internet is beautiful because every little joe can create his personal website, publish his obscure music, sell hi
Re:Way to Stand up for us all (Score:5, Insightful)
Personally, I want companies to start thinking about the free publicity of doing what's good for the consumer. I want companies to start thinking about the value of all the publicity they can get from altruistic acts. I want the leadership of companies to see altruistic acts as having positive economic affects.
Sure google isn't handing thier money out to SBC, but they're also a company that recognizes that being altruistic has it's own value. Hence the way they made this statement.
And like the poster you replied to, I'll applaud them too. I want them to get as much value from being altruistic as I can. Maybe they'll do it again someday if we do.
Re:Way to Stand up for us all (Score:5, Funny)
You're right, I was about to use altavista until I read about this.
OMG I just checked to see if it was still there and altavista has moved from altavista.digital.com to altavista.com. And there aren't any ads! It's scary how you can get distracted for 5 to 10 years and then next time you look, eveything's changed.
Re:Way to Stand up for us all (Score:5, Insightful)
Here is when everyone will say, but isn't such and such company donating to such and such charity? -Yes, but only because they did a cost/marketing analysis and determined that it will generate good publicity to do just that. How come a lot charitable giving from companies is to museums, operas, local TV stations and not as much to soup kitchens for the homeless or rehabilitation of drug addicts and such? - Because that would not generate as much good publicity!
The same with Google. Everyone thinks - "Oh Google, the defender of the consumers, we love you!" - but Google needs that attitude too, that is in part why they are so profitable. It is (or it should) be every company's dream to be perceived like a noble, charitable, honest and good entity - existing solely to help and benefit everyone else, but in reality there is not such thing - there is just $$$. Microsoft can afford to be bully and be mean -- because it already secured most of the software market, I think they will loose out in the end but that's not because they are just a "mean bad bully" but because their strategy/marketing team did bad forecasting .
Re:Way to Stand up for us all (Score:5, Informative)
There is even a name for this. It's called "Good Will." Traditionally it has been considered one of a company's assests that even carries a cash value.
Not exactly. The "Good Will" that you see on an accounting balance sheet isn't the same thing at all. It's really more of a fiction invented by accountants as a placeholder for the fact that the value of a company isn't the same as the value of its tangible assets. If Google manages to generate a huge amount of the non-accounting, karmic Good Will through its actions, that doesn't mean it gets to increase the goodwill number in its quarterly report. The way goodwill is acquired is through mergers and acquisitions.
As an example of the meaning of the term as accountants use it, suppose that Google buys KFG Enterprises for $100M, but KFG only has physical assets of $20M. So when Google's accountants update the balance sheet, they subtract $100M from Google's cash balance, but add only $20M in assets. On paper, it appears that the purchase was a very bad deal which lowered Google's total value by $80M. This isn't true, because everyone knows that $100M was actually an excellent price for KFG, but that's how it looks on paper.
This presents the accountants with both a problem and an opportunity. The opportunity arises because they'd love to report that $80M "loss" to the IRS and take a big bite out of the year's taxes. On the other hand, they do *not* want that $80M loss showing up in the SEC filings and making the company look less profitable in front of the shareholders.
Goodwill addresses both problems. What the accountants do is to add a goodwill line item to the asset side of the balance sheet, in the amount of $80M. That way, the net effect of the transaction on the balance sheet is neutral, the company neither made nor lost anything by buying KFG. This is nice for the SEC filings.
For the purposes of dealing with the IRS, goodwill becomes a depreciable asset, which the accountants can write off over time (in spite of the fact that the company may actually be acquiring more karmic Good Will by playing nice, and may even be capitalizing on the intangible value of KFG that the fictional goodwill stood in for). Each time they write off a chunk of goodwill, they take the hit on their assets in their SEC filings, and they also get to claim the tax deduction. I'm sure there are some rules about how and when they can claim those "losses", but I think they do have some latitude which they can use to juggle the numbers.
I am not an accountant, but this is how a corporate accountant friend explained it to me (with lots of qualifiers that he was oversimplifying nearly to the point of inaccuracy).
Re:Way to Stand up for us all (Score:4, Informative)
Re:Way to Stand up for us all (Score:3)
Re:Way to Stand up for us all (Score:5, Insightful)
Re:Way to Stand up for us all (Score:3, Informative)
Re:Way to Stand up for us all (Score:5, Insightful)
Shrug. If Google wanted to screw everyone else they could -- by paying the extortion money.
After all, it's likely to be a fairly trivial amount of money to Google, and in return they'd be guaranteed that their VoIP and video data packets get highly prioritized.
And, more to the point, they'd ensure that anyone who wants to compete against them has to do the exact same thing. It's called creating a barrier to competition, and it's generally worth every penny in the long run because you end up with less competition, particularly from pesky startups who have nifty ideas but little or no capital. I'm sure Yahoo!, Alta Vista, etc. would've vastly preferred such a barrier, since it would mean that Google never would've managed to completely usurp all of them.
Dark Lord? (Score:5, Funny)
"One Bell to web them all!" Hmm...
"And in the darkness Bell them" No, something's not right...
"Ma' Bell to sue them all!"
THERE!
What about Googlezon? (Score:2)
Re:Dark Lord? (Score:5, Funny)
...and in the darkness bill them.
Re:Way to Stand up for us all (Score:5, Insightful)
It would be rather easy for Bell South to let massively popular sites like Google get away with not paying while throttling out less popular sites for not paying. It would also be somewhat easy for Bell South to not throttle bandwidth on what Google is typically used for (searches) while throttling Google's other features that Bell South might want to compete with.
Common Carrier Status... (Score:3, Interesting)
All the US Telecoms have benefitted over the years from thier status as "Common Carriers". From reduced regulation to reduced tax burdens. Now they want to play both sides of the fence? I'm a big capitalist, but that's just not right. Frankly, I think the FCC should simply revoke the common carrier status of ANY ISP that tries to pull this BS. It should be done retroactively to the date of ISP's incorporation or founding, whichever is earlier. The retroactive tax bill can then be calculated, and
Re:Common Carrier Status... (Score:4, Insightful)
Re:Common Carrier Status... (Score:3, Insightful)
Re:Common Carrier Status... (Score:5, Informative)
Thank goodness (Score:5, Insightful)
Damn right! (Score:2)
Re:Damn right! (Score:2)
block all traffic from Bell South subnets (Score:3, Insightful)
Re:block all traffic from Bell South subnets (Score:2)
Re:block all traffic from Bell South subnets (Score:5, Funny)
The failed QoS modell (Score:5, Insightful)
There has been talk about applying extra fees for "higher quality network" for a long time. In the beginning it sounded like a great idea: data that needs to be transported in realtime (phone calls, stock ticker) would be charged more then data where in time or even in order delivery would be unimportant (ftp transfers etc.)
But something else happened: transfer and bandwidth exploded. I think I remember predictions that by 2008 (????) the average internet user will transfer about 600MB per day. At the same time the bandwidth needed for voice transfer (and even video conferencing) is decreasing. So even if the carriers would charge ten times more for a high "Quality of Service", the data transfered for these services is neglectable and would not justify the extra cost for providing networks with different levels of QoS or even the extra cost for billing it.
So if you want to maintain the idea of "extra charges", you have to look for important data services with "high importance", maybe not being just in time, but being always accessible. There was an outcry a couple of days ago, when (I think) del.icio.us wasn't accessible for some time, the same would be true for ebay or amazon. So the idea is economically right, if you still believe in QoS.
But in reality bandwidth the amount of bandwidth made reserving part of it for special purposes less necessary, other problems can be solved by technology, like caching for video streaming. And since those all work on raw IP networks, there is no big challenge to make a better offer than the bells, once they increase their operating costs by adding technology to enable delivery of QoS network transfers and their billing. I'm sure the carriers know that, so this will never happen. I think it is more PR and demanding "protection" from the market. Usually followed by lobbying to change some law to protect the poor companies from the non existing harm they just created themself.
Re:The failed QoS modell (Score:2)
There has been talk about applying extra fees for "higher quality network" for a long time. In the beginning it sounded like a great idea: data that needs to be transported in realtime (phone calls, stock ticker) would be charged more then data where in time or even in order delivery would be unimportant (ftp transfers etc.)
You're right that this model has not been working out well, although a lot of providers still seem to be pushing it. Where I have seen success is in providing other add-on services.
Re:The failed QoS modell (Score:5, Informative)
This is what happened to the British Penny Post [wikipedia.org] in the 19th century: originally you had to pay a different amount depending on how far your mail was traveling, within Britain. However, Rowland Hill showed that it would actually be cheaper for NEARLY EVERYONE to charge a flat rate, because the postal service wouldn't have to pay people to determine the postage rate for every darned letter.
More recently, I believe this explains why the Internet took off quicker in the US than in France: in 1997, when I lived in France, *no one* that I knew in my high school had Internet access, while practically everyone I knew had access in the USA. The reason was simple: in the US you pay a flat monthly fee for local calls. In France, you get a pamphlet that goes something like this (I'm not exaggerating):
So in France in 1997, not only did you pay per call, and not only did the rate vary depending on the time of day and day of the week, but ON TOP OF THAT the amount of time that each billing unit was good for was constantly shifting. It was a mess. No wonder no one wanted to use their phone line for Internet access.
Re:The failed QoS modell (Score:3, Insightful)
So, admittedly, this particular example was a terrible business idea, though in the long run an enormous boon to British society and commerce. Perhaps it wouldn't have been such a loss for the postal service if they had used a HIGHER price, but kept it a flat rate nonetheless.
Re:The failed QoS modell (Score:3, Insightful)
So carriers are hoping that eventually it will be possible to maintain only one network and have it carry all the traffic. That is why they are pushing fo
first post (Score:2, Interesting)
Power... (Score:2, Funny)
No, it just doesn't feel right, at all, ever.
"Get Loooooooooost" (Score:5, Funny)
Re:"Get Loooooooooost" (Score:2)
Re:"Get Loooooooooost" (Score:3, Funny)
Post with mashed chickpeas ? Wouldn't that jam your keyboard ?
Do no evil (Score:5, Insightful)
Re:Do no evil (Score:5, Insightful)
Re:Do no evil (Score:2)
I always thought that was as crazy as being arrested for soliciting a police officer for prostitution. I mean, if they're a police officer and not a prostitute, then you're not actually doing anything illegal, right? Good thing I'm too cheap to pay for sex.
Double charging != OK (Score:4, Insightful)
Double charging for network access is not equitable period, and yes, US consumer are paying too much comparitively already.
Re:Double charging != OK (Score:5, Insightful)
Charging people for both the bandwidth and the content reminds me of this joke menu:
Soup: $0.99
With Bowl: $5.99
Re:Double charging != OK (Score:3, Insightful)
I also operate a toll road. People use this road to get to all sorts of retail stores to go shopping. Less people would go to these retail stores if they couldn't use my
Fight the power brother!! (Score:2)
This story was posted yesterday and it infuriated me. These telcos are trying to extort more money from providers and us. Big players like Google/MS/AOL/etc need to come out and bring this issue to the forefront so it can be obliterated. Or Google can just by these companies :)
http://religiousfreaks.com/ [religiousfreaks.com]Biting the hand that feeds you (Score:5, Interesting)
What might make more sense would be a pay-per-use plan, where you pay a flat rate for X amount of bandwidth or whatever and more if you use more. But of course if customers don't like the complication, they will choose another ISP.
Re:Biting the hand that feeds you (Score:5, Interesting)
What, like this [bellsouth.com]??
BellSouth already sells connection packages, with varying degrees of bandwidth etc. I'm sure someplace in the fine print is a bandwidth cap and corresponding charges for overages.
What they think they can do now, is charge google on top of charging their customers -- in theory so Google can be guaranteed their stuff will reach a Bell South customer without any degradation -- you know, "nice kid, shame if he hurt himself on the way to school" type stuff.
This is exactly why Google has just basically shrugged off what they had to say and shut the door on any talks.
Bell South is trying to play a shell-game whereby they charge the customer for a certain bandwidht, and then charge the provider to ensure they will be delivered at speeds close to what they've promised/charged the customer.
The worst case scenario: (Score:5, Interesting)
BS eventually implements a tiered QOS policy. Google responds by saying, "fine. You charge us for the pipes, we'll charge you for the content that makes them useful." Cue the lawyers, who huddle up, then spit out a cross-licensing agreement such that BS pays Google exactly what they charge Google for the pipes. Google goes away happy; nothing has effectively changed. BS goes away not particularly happy with Google, but in a position where they absolutely can demand a net positive cash flow from content providers with less market clout than Google.
Consider VOIP: there are enough players in the VOIP game, and it's a small enough market, that no one company has the market leverage to demand much from BS. At the same time, a fairly small change in BS' service (a little bit of lag here, a little bit of jitter introduced over there) will result in completely destroying the VOIP company's ability to serve customers.
It'll end up being the same thing as the way large companies wield their patent portfolios. It means everything goes on just fine for the big players, but the little guys get screwed in the process.
I'm just keeping my fingers crossed that Google doesn't cave on this, even if BS offers up a cross-licensing agreement. Here's hoping "don't be evil" covers this.
Re:The worst case scenario: (Score:3, Insightful)
Would the average user even notice if Google returned searchs slower than Yahoo? Would the average user notice that Amazon was running slower?
I don't think they would care. The average user would only be concerned if his brand new VOIP phone started not working well, or if he couldn't play xbox live.
But you know what, I really don't think that they would complain to BS, they wou
Re:The worst case scenario: (Score:3, Insightful)
Would the average user even notice if Google returned searchs slower than Yahoo? Would the average user notice that Amazon was running slower?
Er.. yes. What do you think, a user only uses the net at his house?
What do you think this user is going to think when he goes over to his buddys house who has Comcast/Speakeasy/Whoever and sees that his GMail and Google searches are 10x faster than his at home, for the same price? He's going to complain or switch carriers, that's what.
Go ahead BS, shoot yourself in
That'll learn 'em! (Score:2)
Re:That'll learn 'em! (Score:2)
I'll bail on BS quickly (Score:3, Insightful)
Any company that threatens to fracture the Internet as we know it doesn't deserve my dollars. How about yours?
G00gle is teh bomb (Score:2)
Google Trifecta is in play
Imagine you were Bell South... (Score:3, Interesting)
Re:Imagine you were Bell South... (Score:3, Informative)
Re:Imagine you were Bell South... (Score:2, Funny)
Re:Imagine you were Bell South... (Score:2)
Good point, but why stop there? Why not just dive into areas that make money guaranteed. Pr0n, Drugs and violent entertainment. That would really help the bottom line.
Re:Imagine you were Bell South... (Score:4, Insightful)
The first thing I would do is Google ingenuity and innovation. [google.com]
I was hoping and semi-expecting.. (Score:2)
That the various big Internet companies out there would not give in to this extortion. Now, if Yahoo, Amazon and eBay give the same response, the prospect of Bell South using this tool to gain way more control than they have any right to will be much dimmer.
Switching Matrix (Score:5, Funny)
Agent Smith: "If I go to the airport, I can buy a coach standby ticket or a first-class ticket," Smith said. "In the shipping business, I can get two-day air or six-day ground."
Neoogle: Wow, that sounds like a really good deal, Bill. But I think I've got a better one. How about I give you the finger, and you give me my phone call.
Costs of broadband? (Score:5, Insightful)
Re:Costs of broadband? (Score:5, Informative)
Re:Costs of broadband? (Score:3, Informative)
Re:Costs of broadband? (Score:3, Insightful)
Competition (Score:5, Insightful)
In fact, the only uncertainty in this equation is whether there is sufficient broadband competition in all markets. Since the stakes for the consumer are increasing due to BellSouth's plan, one would hope that the federal legislature would take a closer look, but BellSouth also happens to be a massive political donor as well.
Google is very ballsy these days (Score:3, Funny)
Its only a matter of time before Google hires Chuck Norris [chucknorrisfacts.com] to simply roundhouse kick all of their enemies.
Re:Google is very ballsy these days (Score:2)
Re:Google is very ballsy these days (Score:2)
Bully for Google. Unfortunately, given this administration's track record for how they treat people/entities who speak out against them or don't roll over and give them what they want, I'd wouldn't be surprised if the government sides with the telcos if/when it comes to that-- just to get back at Google.
~Philly
Re:Google is very ballsy these days (Score:2)
Ehh, Chow Yun Fat is much, much cooler. (I can't believe he didn't get mentioned The Ultimate Showdown [newgrounds.com]).
Re:Google is very ballsy these days (Score:4, Funny)
I'm psychic!! (Score:2)
This fight has only just begun, unfortunately (Score:5, Insightful)
The mentality of the telcos, now that their monopolies are being rapidly deregulated, is to get as much revenue as possible from their infrastructure. Now that voice is virtualized and becoming removed from their revenue models, they feel they have to make money some way to compete with cable, BPL, fiber, and other broadband providers to survive.
They won't be shaken easily, and a pooh-pooh from Google won't slow them down an inch. These are guys that go into Congressional offices armed with a dozen lawyers-- per visit-- every visit. Do not mistake their resolve.
This is just the first salvo, folks. Get you umbrellas.
Given Google's Growth... (Score:5, Insightful)
Considering how long it took the Telcos to get their current wealth, compared to how rapidly a small group of people (Google) became wealthy in a mere fraction of the time, I'll bet it won't be long before companies like Google team up with their insane amount of market and actual worth, and put a stop to this madness altogether.
It's always good... (Score:2)
Finally (Score:3, Informative)
I even run a small ISP, and I agreee that charging content providers for traffic is a horrible idea. The only way to fairly do this would be to have huge burdensome regulations (like the phone companies who receive money through a regulatory scheme for each call they receive from another carrier).
I hate intrusive regulation more than I hate bandwidth hogs. Besides, Bell South could just charge by bandwidth instead of by link capacity if they really wanted to cover the costs of some traffic consuming more resources than others. They won't do this of course because the consumer is hooked on unlimited traffic--much like what is happening more and more with unlimited phone calls.
Ah, Now All is Revealed (Score:2)
Phone co.'s in BAD financial shape (Score:2)
They need to strike out at anything like a cornered animal.
Remind you of SCO ?
Re:Phone co.'s in BAD financial shape (Score:3)
Do you know why VoIP is cheap? because the companies that provide it use someone else's infrastructure. VoIP companies don't own any telephone wires and don't have to pay unionized service techs who manage millions of miles of copper.
If anything, it is MORE expensive for phone companies to do VoIP over their existing copper because it adds yet another layer of complexity, more hardware to service, and more administration.
VoIP isn't some sort of magic; It'
Google's counterproposal (Score:5, Interesting)
We will allow you to continue to offer our service to your customers, at no additional charge to you, and you will save the immense amount of money that it would cost you to explain to all of your customers whey they can no longer get through to Google, and why they shouldn't switch to another internet provider that does offer Google access.
Re:Google's counterproposal (Score:3, Interesting)
BellSouth should pay Google (Score:5, Insightful)
How does cable TV work? Isn't that the same thing? We pay the cable provider, and they pay the stations. No one says the stations should have to pay the cable providers for using their cable bandwidth. I say the internet should be the same thing. So if you have a web site, send BellSouth a bill.
regulation? (Score:3, Funny)
The fact that ISP's will try to do something like this just to make an extra buck on top of their outrageous fees just screams government regulation.
Don't we have double charging, this is triple? (Score:4, Interesting)
So already the content user and the content provider have paid for their upload/download bandwidth agreements.
Now they stroll out and want to extort the content provider. Hey, you want your users to not run into trouble, you need to pay us some money to protect your interests, otherwise it could get messy for them. Sheesh!
Didn't google buy some dark fiber. Google ISP. Lightweight no frills, no throttling. Sign me up.
Economics of the situation (Score:5, Insightful)
The real problem isn't in current services -- it's in high-bandwidth (mainly video) applications. Not only will this will require rolling out new technology, but it will compete directly with services that the cable companies want to offer themselves. Why would you go to the cable company's pay-per-view service when you can get the same movie from the studio's internet video-on-demand service and pay less? From the ISP's point of view, increasing bandwidth is actually going to decrease revenue. And, that's why they want to charge content providers.
The other thing is that Quality-of-Service (QoS) becomes more important with video and that requires marking all packets at some point. If you don't have any way to distinguish between the traffic that gets better service and the traffic that doesn't, then you can't do QoS. To the ISPs, the best way to ration that is to charge those willing to pay for it.
Actually, the fees should be just the opposite! (Score:4, Insightful)
BellSouth has the fees backwards. THEY should be the ones paying!
hey everybody (Score:3, Interesting)
and then, with any luck, a publisher will pick up my manuscript
and then all i have to do is give $10,000 to the publisher for them to publish and distribute it!
huh?
hey bell south: that's not reality
you opened up a can of worms you shouldn't: at best, YOU should be paying google
you just had to be as greedy as humanly possibly, didn't you?
morons
Fighting back against $ellSouth (Score:3, Interesting)
These activities have not been without consequences, however. People in Louisiana are figuring ways of fighting back. For instance, many people now have their phone service with AT and T, or Eatel (both of which are cheaper). Another good trick is that people in appartments are having a single BellSouth DSL subscription, that they then share with their neighbours, using a cheap wireless box from Wal-Mart. BellSouth don't seem to realise how their actions are influencing their revenues. Perhaps in the light of this latest silliness, people in other parts of the country should take similar steps against BellSouth, especially in cases where they are a monopoly, or duoploy broadband provider.
Does this remind you of anything? (Score:3, Interesting)
In their dispute with Apple over the price of an iTune, recording companies justify a proposal to BOTH tier prices AND to raise prices for some tunes above $0.99 by ONLY arguing the mertis of tiered pricing. The merits of tiered pricing aside, iff instead they correctly identified their proposal as a plan to BOTH tier AND raise prices, then they would not be arguing deceptively. If record company executives proposed keeping the weighted average cost per tune at $0.99, charging less than that amount for some tracks and more for others, then they could legitimatley advocate for that scheme on the merits of tiered pricing because that proposal would be only about tiered pricing. But the issue is in not really tiering at all, either among advocates in the record industry or opponents on
So now with the telecoms, we see copycat propaganda; proposing BOTH tiering prices AND raising prices, and defending that conjunction of acts on the merits of tiered pricing alone. What appears to be a merititious argument about tiered pricing is deviously conflated with a scheme to raise prices. Neither Google, nor all the slashdotters who have argued here against tiered pricing really oppose tiered pricing per se. Instead, they oppose the higher prices which telecoms seek to introduce in conjunction with tiered pricing. If Bellsouth had proposed paying Google money instead of chargeing them a fee, this would also have been tiering. Google, rationally, would be in favor of receiving payment from Bellsouth.
The convergent rhetorical tactics of separate industries owes to their shared oligoplostic nature. Normally the penalty to a seller for raising prices is reduced sales. This is, like, why I have been so unsuccessful at selling my AA battery for a $1,000,000.0. The quantity of AA batteries demanded at that price seems to be 0. If I want to make any money, I had better lower the price. But for oligopolies, this pattern of an inverse relation between the price and the quantity demanded does not apply; They can raise prices without reducing sales, or at least to a greater degree than they could in a more competitive market. But there is a downside for ologipolsits when they raise prices: That downside is not reduced profits, but public backlash and political and legal action against them. With propaganda, oligopolists compete against consumers in the political realm to raise prices. The shared propagandist tactic of conflating price tiering with price raising is no coincidence; all oligopolists have to hoodwink the public somehow and what works for one works for another. In fact, it does seem to be working: some of the public goes along because they approve of tiered pricing while most opponents have fallen for the trick and argue against tiered pricing instead of correctly identifying their opposition to price raising.
Of course, In competitive markets, it rarely is worthwile to propagandizie on behalf of higher pricing, because even if you successfully supress political opposition with propaganda, you ultimatly loose sales and profits with higher pricing. This is why, when you go to the grocery store and notice that the price of filet mignon has gone up $0.20, the increased price is not accompanied by a representative of the beef industry explaining the market efficiencies of tiered pricing.
As a consumer, both of internet service and music, more competition among suppliers would benefit me, so I advocate for that. With internet service, acheiving more competition i
Re:Can I get... (Score:2)
I'm very, very glad that I'm not the only person who thought about Stone Cold Steve Austin when I read about this and, to be honest, the mental image of Google giving Bell South the finger, immediatly followed by a Stone Cold Stunner gives me the Warm 'n Fuzzies.
Re:new username time (Score:2)
you might try www.eval.google.com unless they killed that site
Re:Go Google. (Score:2)
No they will degrade Google's VOIP and Video on demand services which no one uses yet. The Google search page will just keep working but it will help keep Google out of other markets. Microsoft or Blockbuster might just pony up so that thier video on demand works better than Googles.
"Why can't old relic companies just die, except for dieing while bringing down everyone else they can."
Because old companies like sharks and cockroac
Re:Who does Google pay? (Score:3, Interesting)
What Bellsouth is saying is that they want to try and recover this money from the content provider who are making the money (via advertising, subscripti