(no subject)
This story just OOOOOOZES capitalistic greed at it's worst!
Verizon Says Google, Microsoft Should Pay For Internet Apps
By
Paul Kapustka, TechWeb News
LAS VEGAS, Nev. -- There's no such thing as a free lunch on the
Internet, according to Verizon CEO Ivan Seidenberg, who said Thursday
that providers of bandwith-intensive Internet applications, including
Google and Microsoft, should "share the cost" of operating broadband
networks.
According to Seidenberg, Verizon and Google are already talking
about how such compensation might be structured, striking a tone far
more diplomatic than AT&T CEO Ed Whitacre, who last year openly criticized
Internet application providers like Google and Voice over IP provider Vonage Holdings.
"We talk to them [Google] all the time, and they understand the issue,"
said Seidenberg, in a question-and-answer period following his keynote
speech Thursday at the Consumer Electronics show here. Google, which
already offers a bevy of online apps like email, instant messaging,
voice and satellite map searches, is expected to announce a video-download service
here Friday. (Google could not be reached for comment immediately.)
While Seidenberg said Verizon "intuitively" believes that the Internet
should be open to all applications, he also said that "we need to make
sure there is the right economic model," especially in regards to
so-called "free" or advertising-supported applications, which generally
do not offer any direct compensation to the network service provider.
"We have to make sure that they [application providers] don't
sit on our network and chew up bandwidth," Seidenberg said. "We need to
pay for the pipe."
Unlike Whitacre, who has previously called Internet application
providers like Vonage "free riders," Seidenberg seems far more amenable
to negotiations and partnerships. "Google and Microsoft are our
partners," he said, crediting the companies for creating huge markets
with their applications and services, which all need networks like
Verizon's to thrive.
But Seidenberg also noted that despite the explosing of
Internet applications and devices, all content providers ultimately
need a network to reach customers, and he said Verizon is "one of three
or four [companies]" with a widespread reach across multiple access
platforms.
"Those guys [Google and Microsoft] gotta use a network,"
Seidenberg said. "But it's also incredible when you see the innovation
that a Google, a Microsoft or an AOL can create. In the long run,
Google won't work without us, and we won't work without them."
Tom Tauke, Verizon executive vice president for public affairs,
policy and communications, said Verizon would not block specific
applications, an issue that emerged early last year when a telecom
service provider briefly tried to block
Vonage's VoIP services.
"We would not do that [block specific applications], and it shouldn't
be done," said Tauke, who said that Verizon is actually in favor of
codifying so-called "network neutrality" rules, as long as there are
provisions for parallel private networks, like Verizon's nascent
fiber-based television services. At CES, Verizon announced plans for an
online gaming network that would also likely be segmented away from the
"open" Internet, so that Verizon could better control the performance
of the network.
As for open Internet applications, Seidenberg said it's still
too early in the game to try to make definitive statements about how
service providers and application providers can co-exist, partner, and
compete.
"When we offered 800 numbers, our network got flooded and we
responded by choking the network," Seidenberg said, adding that the
company then negotiated with 800-service providers to help pay for
their usage in a manner that made sense for both parties.
"Now it's a new game, and Google and Microsoft are great at creating
markets," Seidenberg said. "It's too early to draw a line in the sand,"
he added. "I don't think I'd ever say these guys are not going to ride
on my pipes."
http://www.techweb.com/wire/networking/175801739
Verizon Says Google, Microsoft Should Pay For Internet Apps
By
Paul Kapustka, TechWeb News
LAS VEGAS, Nev. -- There's no such thing as a free lunch on the
Internet, according to Verizon CEO Ivan Seidenberg, who said Thursday
that providers of bandwith-intensive Internet applications, including
Google and Microsoft, should "share the cost" of operating broadband
networks.
According to Seidenberg, Verizon and Google are already talking
about how such compensation might be structured, striking a tone far
more diplomatic than AT&T CEO Ed Whitacre, who last year openly criticized
Internet application providers like Google and Voice over IP provider Vonage Holdings.
"We talk to them [Google] all the time, and they understand the issue,"
said Seidenberg, in a question-and-answer period following his keynote
speech Thursday at the Consumer Electronics show here. Google, which
already offers a bevy of online apps like email, instant messaging,
voice and satellite map searches, is expected to announce a video-download service
here Friday. (Google could not be reached for comment immediately.)
While Seidenberg said Verizon "intuitively" believes that the Internet
should be open to all applications, he also said that "we need to make
sure there is the right economic model," especially in regards to
so-called "free" or advertising-supported applications, which generally
do not offer any direct compensation to the network service provider.
"We have to make sure that they [application providers] don't
sit on our network and chew up bandwidth," Seidenberg said. "We need to
pay for the pipe."
Unlike Whitacre, who has previously called Internet application
providers like Vonage "free riders," Seidenberg seems far more amenable
to negotiations and partnerships. "Google and Microsoft are our
partners," he said, crediting the companies for creating huge markets
with their applications and services, which all need networks like
Verizon's to thrive.
But Seidenberg also noted that despite the explosing of
Internet applications and devices, all content providers ultimately
need a network to reach customers, and he said Verizon is "one of three
or four [companies]" with a widespread reach across multiple access
platforms.
"Those guys [Google and Microsoft] gotta use a network,"
Seidenberg said. "But it's also incredible when you see the innovation
that a Google, a Microsoft or an AOL can create. In the long run,
Google won't work without us, and we won't work without them."
Tom Tauke, Verizon executive vice president for public affairs,
policy and communications, said Verizon would not block specific
applications, an issue that emerged early last year when a telecom
service provider briefly tried to block
Vonage's VoIP services.
"We would not do that [block specific applications], and it shouldn't
be done," said Tauke, who said that Verizon is actually in favor of
codifying so-called "network neutrality" rules, as long as there are
provisions for parallel private networks, like Verizon's nascent
fiber-based television services. At CES, Verizon announced plans for an
online gaming network that would also likely be segmented away from the
"open" Internet, so that Verizon could better control the performance
of the network.
As for open Internet applications, Seidenberg said it's still
too early in the game to try to make definitive statements about how
service providers and application providers can co-exist, partner, and
compete.
"When we offered 800 numbers, our network got flooded and we
responded by choking the network," Seidenberg said, adding that the
company then negotiated with 800-service providers to help pay for
their usage in a manner that made sense for both parties.
"Now it's a new game, and Google and Microsoft are great at creating
markets," Seidenberg said. "It's too early to draw a line in the sand,"
he added. "I don't think I'd ever say these guys are not going to ride
on my pipes."
http://www.techweb.com/wire/networking/175801739