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Google Won't Pay Bell South

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'"

84 of 483 comments (clear)

  1. Way to Stand up for us all by Grue_Food · · Score: 5, Funny

    I commend Google for standing up to the Dark Lord for us.

    1. Re:Way to Stand up for us all by rtconner · · Score: 4, Funny

      yay! Google is not evil, and they might even be good!

      --
      023AD01("Child", "Evil");
    2. Re:Way to Stand up for us all by Radres · · Score: 2, Interesting

      Yes, thanks Google for standing up for us all. All Google had to do was refuse to give their money to someone else. Let's think this situation through before applauding Google's altruistic nature.

    3. Re:Way to Stand up for us all by hal2814 · · Score: 5, Insightful

      In the words of the Wolf, "Let's not start sucking each other's [word removed by Google safe search] just yet."

      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.

    4. Re:Way to Stand up for us all by ZephyrXero · · Score: 2, Interesting

      Still it's ridiculous for the ISPs to think they can get even more money this way... If they all start going through with this horrible idea, then they better drop my connection fees down to like $20 a month or something. I could see maybe a double tiered service perhaps this way... like $20/month for the craptacular we charge your webservices too version and then the usual $50-60/month we all pay now for "unlimited" access. I mean, I'm with Comcast myself...but I'm sure they'll be following in the same steps as Bellsouth pretty soon too...all of them will. God I hate corporate America :(

      --
      "A truly wise man realizes he knows nothing."
    5. Re:Way to Stand up for us all by GeneralTao · · Score: 3, Funny

      "I could see maybe a double tiered service perhaps this way... like $20/month for the craptacular we charge your webservices too version"

      Thanks, but I hated it the first time they did it, when it was called CompuServ.

      --
      --- Tao
    6. Re:Way to Stand up for us all by whizzter · · Score: 3, Insightful

      Yes, thanks Google for standing up for us all. All Google had to do was refuse to give their money to someone else. Let's think this situation through before applauding Google's altruistic nature.

      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 his special goods and most importantly speak without being censored.

    7. Re:Way to Stand up for us all by Kamots · · Score: 5, Insightful

      There's a second economic aspect to this other than the one you mentioned. They're getting free publicity because they're doing "right" by the consumer (it also just kinda happens to save them money)

      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.

    8. Re:Way to Stand up for us all by Anonymous Coward · · Score: 5, Insightful

      Let's not forget the other Google story today, that while all the *other* major search engines rolled over and gave the government their log files to protect us from porn, Google alone refused. To suggest this was just about the money is shortsigted. How would you like the web if every site required a subscription so the broadband monopolies could get their cut? This strikes at the very heart of how the model of how the internet works.

    9. Re:Way to Stand up for us all by grasshoppa · · Score: 4, Insightful

      I mean, I'm with Comcast myself...but I'm sure they'll be following in the same steps as Bellsouth pretty soon too

      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.

      --
      Mod me down with all of your hatred and your journey towards the dark side will be complete!
    10. Re:Way to Stand up for us all by Qzukk · · Score: 3, Interesting

      who don't have a vested interest to hold the voip down.

      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.

      --
      If I have been able to see further than others, it is because I bought a pair of binoculars.
    11. Re:Way to Stand up for us all by foxwizard · · Score: 2, Interesting

      I agree! That's why we need consumer pressure as well. I cancelled my BellSouth broadband yesterday, after they made the announcment, and told them why. We need to encourage subscribers to boycott BellSouth as well as content providers to refuse to bend to the blackmail.

      Oh, and fwiw, I'm cancelling my BellSouth phone service and moving to voip over my new broadband conneciton, and I'll acutally save 50% of my monthly costs doing this.

      Only pressure from both sides will wake these corporate goons up.

    12. Re:Way to Stand up for us all by Zathrus · · Score: 5, Insightful

      All Google had to do was refuse to give their money to someone else. Let's think this situation through before applauding Google's altruistic nature.

      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.

    13. Re:Way to Stand up for us all by Anonymous Coward · · Score: 5, Funny

      They're getting free publicity because they're doing "right" by the consumer

      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.

    14. Re:Way to Stand up for us all by Andrzej+Sawicki · · Score: 4, Insightful

      No, they just do not want to pay, and they feel they will get away with it (as they should). Fighting a company which is perceived as evil is just a side effect here, IMO.

    15. Re:Way to Stand up for us all by lastchance_000 · · Score: 5, Interesting

      Given the details in this story: Feds seek Google records in porn probe, I'd say they are definitely not evil. At least not at the moment.

    16. Re:Way to Stand up for us all by drgonzo59 · · Score: 4, Insightful
      People always forget and try to deal with large companies as if they are individuals with morals, feeling and so on. The companies are not like that, they exist only to make money and will only do whatever makes them more money (I am talking about for-profit organisations only here).

      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 .

    17. Re:Way to Stand up for us all by swillden · · Score: 4, 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).

      --
      Note to ACs: I usually delete AC replies without reading them. If you want to talk to me, log in.
    18. Re:Way to Stand up for us all by mph · · Score: 2, Informative
      Interesting invasion of privacy. Do you have a link or any proof that the Government requested this information?
      If it's that hard to find on the front page, just wait for the dupe.
    19. Re:Way to Stand up for us all by SillyNickName4me · · Score: 2, Insightful

      Chargign the subscriber for enhanced service (QOS) is not bad, actually, I believe that is the 'right' way to do this.

      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 should realize that the biggest asset they have is their subscribers, not their infrastructure. 15 years from now, happy subscribers will very likely still be around, your infrastructure will as likely be outdated. Content providers? WHo knows which one is 'hot' a year from now, let alone 15 years from now, so a strategy based on their payment is at least not a good way for achieving longterm viability of either telcos or cable companies, rather, its the well known strategy of favoring their own services and using their local monopolies for forcing others into their model. Instead of one big mama bell theres a couple of them aroud now, but nothing else changed really.

    20. Re:Way to Stand up for us all by truesaer · · Score: 3, Informative

      Thats essentially correct, but it isn't really done because they don't want to show an 80M loss on the balance sheet...its because it is a "balance sheet" and obviously things must balance. If I pay $100 million for your company, then obviously it is worth $100 million. So I need to record $100M of assets. Since there are specific depreciation rules for things like physical assets and other rules for things like contracts and whatnot, I record those as I normally would. But you have to record the premium over book value somehow, because otherwise the transaction doesn't balance and your accounting system breaks down. And that is where good will comes from. It is the plug that makes the transaction balance. Now in theory you should eventually depreciate your goodwill as well, though that is a very complicated subject in accounting terms because the period of time isn't obvious at all.

    21. Re:Way to Stand up for us all by Yez70 · · Score: 2, Informative

      Time Warner ALREADY does provide DEDICATED bandwith for their voip service. It is allocated a specific portion of the cable pipe's spectrum (seperate from the internet service), just as the cable TV is allocated it's own dedicated portion. The high speed internet portion of the pipes bandwith is the only shared portion (with your neighbors) and would be the only option for any competiting voip providers at this time. Now just because they already do this (because they can with their big fat pipes) does not mean it's detrimental to the other providers, but it does give them the option....

    22. Re:Way to Stand up for us all by SillyNickName4me · · Score: 3, Interesting

      choosing between the least bad of two candidates reminds me entirely too much of politics.

      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.

    23. Re:Way to Stand up for us all by OOGG_THE_CAVEMAN · · Score: 2, Interesting

      The only "realistic" price for anything is what it sells for.

      Yes, in some theoretical sense, but not in the sense that the transaction is a rational one to make. Buyers can make mistakes. Anyway, once you own it, there's no guarantee that someone else would pay the same price, so this theoretical price has changed already; without a buyer ready to shake on the deal, you have to come up with a value through another analysis.

      There is an intrinsic value in an enterprise, which is the present value of the stream of revenues that the enterprise will produce in the future. Nobody has a crystal ball to know the future stream of revenues in advance, nor do they even necessarily have a good value for the appropriate discount rate to apply. So the true value is shrouded in mystery.

    24. Re:Way to Stand up for us all by dossen · · Score: 2

      Surely SCO must be worth just a little more, no matter how much they have soiled the name. Something like $49.99 with a $15 mail-in rebate sounds about right. Provided that shipping is included.

  2. Thank goodness by Anonymous Coward · · Score: 5, Insightful

    I was wondering when someone was going to get a clue. Looks like Google is going to force the hands of providers' to keep billing for structure and not content. The Bells wished they could have done this with VoIP. Their loss; everyone else's gain.

  3. block all traffic from Bell South subnets by maharg · · Score: 3, Insightful

    That'll teach 'em good.

    --

    $ strings FTP.EXE | grep Copyright
    @(#) Copyright (c) 1983 The Regents of the University of California.
    1. Re:block all traffic from Bell South subnets by bcattwoo · · Score: 4, Funny

      But then I would have to switch to Road Runn^[NO CARRIER]

  4. The failed QoS modell by chriss · · 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.

    1. Re:The failed QoS modell by MoxFulder · · Score: 4, Informative
      Yeah, I think the explosion of transfer rates and bandwidth is key. At some point, it became cheaper for companies to simply provide more bandwidth than for them to go around metering the amount of bandwidth users are actually using.

      This is what happened to the British Penny Post 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):

      Local calls are billed per unit. The cost of one unit is 0.13F on Monday through Saturday at noon, and 0.10F on Saturdays after noon, Sundays, and government holidays. The length of calling time per billing unit varies as follows:
      • Between 9 am and 4 pm on weekdays (1 pm on Wednesday): 39 seconds
      • Between 4 pm (1 pm on Wednesday) and 6 pm on weekdays: 62 seconds
      • Between 6 pm and 10 pm on weekdays, as well as 9 am and noon on Saturdays: 70 seconds
      • ...
      • ...


      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.
    2. Re:The failed QoS modell by knipknap · · Score: 2, Insightful

      QoS didn't fail, it was not even invented to provide customers with new products. It was invented to unify different networks and different types of traffic into one network. Carriers currently have to maintain two completely separate networks: One for voice and one for data transfer. This is extremely costly, and requires twice as much maintainance/staff.

      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 for this model so much. QoS is in fact on a very good track to become a huge success.

      Also, the traditional phone network is (at least in theory) more prone to errors, because in a Sonet/SDH ring, or even in the old analog switches there is (virtually) no routing in case of failure of a circuit. In addition, carriers can get rid of older technologies that use bandwidth very inefficiently by providing fixed-with time/bandwith slots to a single subscriber.

    3. Re:The failed QoS modell by MoxFulder · · Score: 2, Insightful

      Errr.... :-) I must admit I only read the Wikipedia entry halfway through. I remembered this example from high school history and in our History book they neglected to mention the fact that the postal service lost revenue.

      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.

  5. first post by speedlaw · · Score: 2, Interesting

    Of course they want to clamp down. The money is in the content, not the backbone, so they want to limit content to that which they have a financial interest. This way, it can be slow, expensive, and limited.

  6. Power... by zenasprime · · Score: 2, Funny

    ...to the corporations...???????????????...

    No, it just doesn't feel right, at all, ever.

  7. "Get Loooooooooost" by nacturation · · Score: 5, Funny

    The summary: Give us more money, and we won't throttle traffic to your site. In response, Google tells them to [results filtered by safe search].

    --
    Want to improve your Karma? Instead of "Post Anonymously", try the "Post Humously" option.
    1. Re:"Get Loooooooooost" by Fred_A · · Score: 2, Funny
      try the "Post Humously" option.


      Post with mashed chickpeas ? Wouldn't that jam your keyboard ?
      --

      May contain traces of nut.
      Made from the freshest electrons.
    2. Re:"Get Loooooooooost" by sconeu · · Score: 2, Insightful

      Nah, that would be the "post hummus-ly" option.

      --
      General Relativity: Space-time tells matter where to go; Matter tells space-time what shape to be.
  8. Do no evil by dptalia · · Score: 5, Insightful

    Between this and resisting turning over search data, it looks like Google is really trying to "do no evil". I was beginning to wonder about them from some of the more recent stories, but this helps restore my confidence in Google.

    --
    Genius is one percent inspiration and 99 percent perspiration, which is why engineers sometimes smell really bad.
    1. Re:Do no evil by interiot · · Score: 5, Insightful

      Moreover, they did it in a brilliant way. If I was a big guy, and somebody said something I strongly disagreed with, my initial reaction would be to tell them why I disagree with them. But that would have given Bell South an opportunity to argue back, and keep this concept in the headlines for a week or two. By resisting the urge to enumerate why it's such a stupid proposal, and making it clear that there should be no conversation between ISP's and website providers, Google has effectively killed this news story immediately, making it pretty clear that it doesn't matter what ISP's try to say about the issue in the press, because it's simply a non-isuse.

  9. Double charging != OK by sjhwilkes · · Score: 3, Insightful

    If the other major sites publicly state this it will help to nip this in the bud.

    Double charging for network access is not equitable period, and yes, US consumer are paying too much comparitively already.

    1. Re:Double charging != OK by Kelson · · Score: 4, Insightful

      I never have understood this. I mean, content providers are already paying for the bandwidth to upload the content, and consumers are already paying for the bandwidth to download it.

      Charging people for both the bandwidth and the content reminds me of this joke menu:

      Soup: $0.99
      With Bowl: $5.99

    2. Re:Double charging != OK by Phat_Tony · · Score: 2, Insightful
      I sell potato chips. They're salty, and make people want to drink more soft drinks. I'm going to start threatening the soft drink manufacturers that if they don't start making direct payments to us chip manufacturers for increasing their market access, I'm going to stop selling chips, thereby decreasing demand for their product, and sales.

      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 handy toll road, so I'm going to threaten the retail stores, and tell them that they need to start paying me kickbacks. If they don't, I'll start asking people where they're going when they get to my toll road, and if they're going shopping, I won't let them on.

      Now, of course, I know that any soft drink manufacturer and retail store in their right mind is going to go tell me what I can insert and where I can insert it. If fact, they might point out that my sales of potato chips and toll road usage are just as dependent on their providing soft drinks and retail outlets as vice versa. This is why I'm already spending a fortune on buying politicians to force them to give me money.

      --
      Can anyone tell me how to set my sig on Slashdot?
  10. Biting the hand that feeds you by Nerdposeur · · Score: 5, Interesting
    Why would Bellsouth charge Google? Without Google (and other useful sites), nobody would subscribe to their internet service. We're paying to get access to the internet, and they're complaining because our access is costing them money. Sounds like a problem with your business plan to me.

    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.

    1. Re:Biting the hand that feeds you by gstoddart · · Score: 4, 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.


      What, like this??

      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.
      --
      Lost at C:>. Found at C.
  11. The worst case scenario: by Control+Group · · Score: 5, Interesting

    What I fear more than anything else in this whole "tiering" push is the following:

    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.

    --

    Reality has a conservative bias: it conserves mass, energy, momentum...
    1. Re:The worst case scenario: by gcatullus · · Score: 2, Insightful

      Rather than huddling up, what happens if Google just decides not to pay, and BS just decides to slow down the connection to Google.

      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 would complain to xbox live or to their VOIP provider.

      This is indeed a win for BS, and a win for content providers who don't care if they load quickly, but a loss for customers, and for any other emerging technology that requires bandwith.

    2. Re:The worst case scenario: by brunes69 · · Score: 2, 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 the foot, see if I care. If you think BS > Google when it comes to brand loyalty, you've got another think coming.

  12. I'll bail on BS quickly by T5 · · Score: 2, Insightful

    This positioning on the part of BS/Verizon/other money-grubbing ISPs has to be put down like a rabid dog. If they insist on milking not only their customers of the ~$30-60/month charge for their DSL service, but the sites that service their customers through their already-paid-for service, then I must insist on them choosing from whom they wish to derive their revenues - us, their paying ISP customers, or them, those Internet destinations that "us" wish to visit.

    Any company that threatens to fracture the Internet as we know it doesn't deserve my dollars. How about yours?

  13. Imagine you were Bell South... by Morrigu · · Score: 2, Interesting

    what would you do in this situation?

    --
    "We can categorically state that we have not released man-eating badgers into the area." - Major Mike Shearer, UK
    1. Re:Imagine you were Bell South... by Billosaur · · Score: 2, Informative

      Rethink my advertising partnership for one thing.

      --
      GetOuttaMySpace - The Anti-Social Network
    2. Re:Imagine you were Bell South... by GungaDan · · Score: 2, Funny

      Um... kick a puppy? Push a little old lady out into traffic? Apologize to my dark lord for having failed to do his bidding this time?

      --
      Eloi are stupid, throw morlocks at them!
    3. Re:Imagine you were Bell South... by digitaldc · · Score: 3, Insightful

      what would you do in this situation?

      The first thing I would do is Google ingenuity and innovation.

      --
      He who knows best knows how little he knows. - Thomas Jefferson
  14. Switching Matrix by Tackhead · · Score: 4, Funny
    > Bill Smith, chief technology officer at BellSouth justified content charging companies by saying they are using the telco's network without paying for it. "

    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.

  15. Costs of broadband? by krbvroc1 · · Score: 4, Insightful

    Didn't we (shareholders/taxpayers/markets) already pay/subsidize for the massive install of 'dark-fiber' (unused fiber optics cables) in the dot.com runup? There is so much unused fiber out there that ISP prices should be dropping, not increasing.

    1. Re:Costs of broadband? by Anonymous Coward · · Score: 5, Informative

      Well yes there is a ton of dark fiber out there. But let me explain about how cheap it is. I work for a cable installation company. We plow in new phone/power/cable tv systems. If you have a fiber in the ground and we come along, then you have to mark it so that we can cross it without cutting it. Minnesota one call laws and others states as well define the liabilty on this pretty well. If it's not marked we aren't liable. So even if the fiber is dark(not in use) it causes expense, someone has to pay the locator. If it gets cut it's lost inventory unless fixed(a typical, say 4 fiber, cut is around 20 grand to splice now). so the cost is still there on dark fiber even though there is no revenue being generated. The fiber in question remains dark for a reason. Generally it's due to one of three things. The Company that owns the fiber has no current need for it. The fiber doesn't go to an area where it is needed. Or the usual scenario is that it is simply surplus. We often place 96 fiber through an area. Only 10 of those are needed, so the other 86 are dark. This is what MOST of the dark fiber out there is. Dark fiber then becomes somewhat of an urban myth. So yes broadband costs go up due to what seems like basic reasons, but which are actually far more complicated. If we only placed the 10 fibers that we needed now, and then found that 10 more were needed in say 2 years, we actually cause more expense. How? Well, now we need to locate the existing fiber($), buy new fiber to place($), pay someone to place it($$), and maintain it($). So in essence references to "dark fiber" are misleading at best. Just 2 cents from someone on the inside of the construction part of the scene.

    2. Re:Costs of broadband? by digitalsushi · · Score: 2, Informative

      Terminating those ends costs a lot more than the lines themselves. They don't just tie a string can onto the ends of a fiber -- a nice XENPAK transceiver to cap a 10 gigabit Ethernet connection is going to run 5 to 10 thousand bucks PER END. Not to mention you need a blade to toss it in that supports it. If someone feels like showing me how stupid I must be, please retort with a counter example.

      --
      slashdot: where everyone yells sarcastic metaphors to themselves to understand the issue
    3. Re:Costs of broadband? by Pr0Hak · · Score: 2, Insightful

      The XENPAK is not even the expensive part if you need to carry the signal any significant distance. The 10GigE transponder card that will go on either end of your DWDM system is probably on the order of $100,000. The 10 gigabit Ethernet interface on your router is probably even more expensive (maybe less if you are connecting to a layer 2 device). Plus, there is the cost of the common equipment in the DWDM system, including systems that handle amplification every 100km or so, regeneration after a few amplifications, etc. $10,000 for the XENPAK is chump change compared to the other parts involved if you're running distances over a few kilometers, and looks even more like chump change if you want to multiplex multiple signals on that fiber and need to buy a DWDM system.

      It is seriously expensive to carry large amounts of data over a long distance!

  16. Competition by Dachannien · · Score: 4, Insightful

    Statements from large Internet presences such as this one from Google, combined with competition in the ISP arena, will ensure that stupidity such as the tiered bandwidth model will never materialize. If BellSouth starts clamping down on bandwidth for content providers who won't pay, then their competitors just have to start running ads saying that they offer service that's just as fast, just as cheap, and that gives you the full power of their service no matter what website you visit or what service you use.

    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.

  17. Google is very ballsy these days by gbobeck · · Score: 3, Funny

    Google has been showing a very large ammount of testicular fortitude lately. First Google says no to US government's request for logs of searches and now they told Bell South to stick it.

    Its only a matter of time before Google hires Chuck Norris to simply roundhouse kick all of their enemies.

    --
    Navicula hydraulica plena anguilarum est. Omnes castelli tuus nostri sunt. Ed elli avea del cul fatto trombetta.
    1. Re:Google is very ballsy these days by Rude+Turnip · · Score: 4, Funny

      Chuck Norris doesn't use search engines. All the relevant results simply huddle together in fear.

  18. This fight has only just begun, unfortunately by postbigbang · · Score: 5, Insightful

    SBC/AT&T, Bell South, and soon others will be at Congress's heels to get the concept changed.

    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.

    --
    ---- Teach Peace. It's Cheaper Than War.
  19. Dark Lord? by Spy+der+Mann · · Score: 5, Funny

    "One rule to ring them all!" No, wait...
    "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! :D

    1. Re:Dark Lord? by geobeck · · Score: 5, Funny
      "Ma' Bell to sue them all!"

      ...and in the darkness bill them.

      --
      Find environmentally and socially responsible products on http://buy-right.net
  20. Common Carrier Status... by d3ac0n · · Score: 3, Interesting

    Funny,

    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 the ISP should be forced to pay the entire thing in one LUMP SUM.

    Just the threat of instant bankruptcy should be enough to knock some sense into these twits.

    --
    Official Heretic from the "Church of Global Warming". Proven right thanks to whistle blowers. AGW = Flat Earth Theory
    1. Re:Common Carrier Status... by ZephyrXero · · Score: 3, Insightful

      Do remember you're talking about the same FCC who's probably gonna side with all these big ISPs against municipal wirless access... Don't you know all our politicians swing in the direction of the highest dollar these days?

      --
      "A truly wise man realizes he knows nothing."
    2. Re:Common Carrier Status... by Jtheletter · · Score: 2, Insightful

      I don't have time to find the relevant links, but I don't think ISPs actually have Common Carrier Status in the US. I appreciate your sentiment, but unfortunately you can't hold them hostage over a status they don't have. Someone feel free to prove me right or wrong.

      --
      -- I'm not a pessimist, I'm a realist. It's not my fault that life sucks so much. --
    3. Re:Common Carrier Status... by A+beautiful+mind · · Score: 5, Informative
      --
      It takes a man to suffer ignorance and smile
      Be yourself no matter what they say
  21. Finally by uncreativ · · Score: 3, Informative

    About time someone in the content business stood up and flatly, publicly opossed the idea of charging content providers for sending their data.

    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.

  22. Google's counterproposal by tgibbs · · Score: 5, Interesting

    We have given your proposal the attention that it deserves, and offer the following counterproposal:

    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.

    1. Re:Google's counterproposal by complete+loony · · Score: 2, Interesting
      Why not they've done it before:

      "Ray took unauthorized automated queries very personally. If he could figure out the spammer's email address, he would send a terse cease and desist warning to them. If he couldn't, he might block their IP address from accessing Google altogether. In an extreme case, he might request that a spammer's ISP kick them off of their service. And, if the ISP wasn't responsive enough, he might block all of the ISP's other IP addresses, too. That's how Ray turned off access to Google for most of France one day. It got the ISP's attention, all the more so because it happened to be one of Google's larger customers at the time."
      --
      09F91102 no, 455FE104 nope, F190A1E8 uh-uh, 7A5F8A09 that's not it, C87294CE no. Ah! 452F6E403CDF10714E41DFAA257D313F.
  23. Just...one...more...minute.... by EBFoxbat · · Score: 2, Interesting

    Google just needs Me Bell to delay a bit so they can unvail there gNet. I mean, I assume there's a reason for them buying up tons of dark fiber. If I do have to pay for priority access to certain IP address, can't I just pay one... for a proxy server IP? If I didn't have to pay extra to access Google.com at high speed, Google could (and would) make there own proxies or something of the like to relay our DNS requests at Google-Fiber-speed. Something like web accelerator.

  24. BellSouth should pay Google by evan1l38 · · Score: 4, Insightful

    I think google should charge BellSouth for the content. Bellsouth is getting a lot of money from customers for connections. Without web sites and content to deliver over that connection, customers wouldn't buy it - why get a connection if there's no internet to connect with? So Bellsouth is just getting all that for free. They're selling the content that WE provide as web authors, but not paying us a penny for getting all that content!

    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.

    --

    Evan Reynolds evanthx@hotmail.com
    Two peanuts crossed the street. One was assaulted.

  25. Re:Who does Google pay? by pksiv · · Score: 3, Interesting

    I think everyone is missing the point. The current ISP pricing models are based on a fixed amount of anticipated bandwidth usage per-customer. If content providers start streaming movies and a lot of other large-bandwidth content, the available bandwidth will be used up quickly and the Service Providers will need to spend $$$ increasing their infrastructure.

    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, subscriptions etc...), not directly from the consumer.

    The important thing here is that Service Providers aren't going to improve their infrastructure with their own money. The more bandwidth they determine you will use, the more you're going to have to pay for using it.

    Bellsouth already has several broadband pricing options for different connection rates.

    Up to 256 Kbps/128 Kbps - $24.95/mo
    Up to 1.5 Mbps/256 Kbps - $32.95/mo
    Up to 3 Mbps/384 Kbps - $37.95/mo
    Up to 6 Mbps/512 Kbps - $46.95/mo

  26. Given Google's Growth... by Khyber · · Score: 4, Insightful

    I doubt that for very long those telcos will be able to compete in the political arena, when/if Google starts throwing their money around for political clout.

    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.

    --
    Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.
  27. regulation? by StarvingSE · · Score: 3, Funny

    I may be going really radical with this, but I personally believe internet access should be a regulated utility just like gas, power, and the like. Its a fact that most people now NEED access to the internet on a daily basis. I am required to get my homework assignments off the web for school, and e-mail is one of my primary forms of communication with work and friends.

    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.

    --
    I got nothin'
  28. Don't we have double charging, this is triple? by guidryp · · Score: 3, Interesting

    I mean we pay for our download/upload bandwidth on the user end. The companies pay for it on their end already.

    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. :-)

  29. Economics of the situation by cfulmer · · Score: 4, Insightful

    Google can play the game. Let's say there there are two broadband internet providers in an area, and Google decides that it's only going to pay the fee to one of them. What is going to happen to the subscribers of the other? They will leave -- if I can't even get Google on my ISP, but I can on the competition, I'm going to switch.

    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.

  30. Actually, the fees should be just the opposite! by AtariDatacenter · · Score: 3, Insightful

    Google should charge BellSouth a large amount of money for premium access to Google's networks. BellSouth's customers will benefit by high bandwidth/fast response times to one of the most popular destinations on the web.

    BellSouth has the fees backwards. THEY should be the ones paying!

  31. Re:Phone co.'s in BAD financial shape by Richthofen80 · · Score: 2

    There is nothing to stop the bells from offering VoIP

    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's a service that relies on existing infrastructure, not a substitute for the infrastructure itself.

    --
    Reason, free market capitalism, and individualism
  32. That means Something by mxronin · · Score: 2, Funny

    I am probably not the first or last person to say this but isn't it funny how bellsouth's initials is BS.

  33. G is building their own free wireless world by my3cents · · Score: 2

    In 5 years, when we are all surfing via G's free wireless network, no one will remember the Ma Bell's of the world.

  34. hey everybody by circletimessquare · · Score: 2, Interesting

    i'm going to write a book

    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

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
  35. Fighting back against $ellSouth by Dr_Ish · · Score: 3, Interesting
    It seems that BellSouth are hell bent on becoming the new SCO, or Micro$oft. In addition to this latest 'antic', they continue to behave badly in all sorts of other ways. In New Orleans, as people will recall, they decided not to give a building that they had promised to the N.O. Police dept, when the city started to offer free wi-fi. Also in Louisiana, the small town of Lafayette's utility system, L.U.S. has proposed laying fiber to every home. BellSouth forced a referendum, that they massively lost. Despite this, they keepfighting L.U.S. in the courts, trying to slow the project and cause as many problems as possible.

    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.

  36. Does this remind you of anything? by Jodka · · Score: 2, Interesting

    It is intereresting that two oligopolized industies, the local telecoms and the recording industry, are currently deploying the indentical propagandist tactict; Both are conflacting the issues of tiered prices with higher prices.

    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 ./; As strong is the opposition here on ./ to tiered pricing, that would instantly switch to approval of an equal magnitude if recording companies advocated for a tiered pricing scheme in which $0.99 was the maximum cost, with some tunes available at lower prices.

    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

    --
    Ceci n'est pas une signature.