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In EU, Google Accused of YouTube "Free Ride"
An anonymous reader passes along a Financial Times piece that covers a push by EU telecoms to get Google to pay them directly — years after US ISPs began rattling that sword, to little effect thus far. "Some of Europe's leading telecoms groups are squaring up for a fight with Google over what they claim is the free ride enjoyed by the technology company's YouTube video-sharing service. Telefónica, France Telecom, and Deutsche Telekom all said Google should start paying them for carrying bandwidth-hungry content such as YouTube video over their networks.... Some European telecoms groups fear Google will reduce them to 'dumb pipes' because the internet search and advertising company pays the network operators little or nothing for carrying its content. Rick Whitt, a senior policy director at Google in Washington ... said Google was spending large amounts on its own data networks to carry its traffic to the point where it is handed over to telecoms companies round the world." Note that FT.com operates on a "first few per month free" paywall basis.
Google bought some bandwidth to be able to send site content to users. Those users bought some bandwidth to be able to receive it. What's the problem?
Some European telecoms groups fear Google will reduce them to 'dumb pipes'
And I 'dumb pipe' is all I ever expected from my ISP, and it is what I'm paying for! If they want Google to pay for delivering the content, I will get access for free, right? Bullshit.
Yes, those poor telecoms that gives their users free access to the internet must be paid back by Google. How does Google dares to provide content and expect the charity telecoms to be the only ones that pay for those bills. I'm outraged.
Wait a minute....
Then why my telecom is sending me a monthly fee?
Dear telecomns, in case you have not noticed: you are 'dumb pipes' and always were. Get over it, stop whining and start providing the bandwidth you advertise.
Google should just tell those telecom companies to block YouTube from their networks if they think it's taking up too much bandwidth. Let's see who suffers.
The European Telecom operators should know that we, Internet subscribers, pay for our connection top Euros to be able to access sites like Google, Gmail or Youtube. Google is offering most of their services for free to their users and we, as clients of the Telecom companies, are already paying.
At least, Spain's Telefonica CEO demonstates he's just a parasite that doesn't know about what he's talking except getting more money from Google and their clients. If you understand the Spanish talked by a almost drunk man, you'll get the point watching this video:
http://www.youtube.com/watch?v=rVADWAxOZtg
Like, the customers? If I'm paying for 10GB of data at 10Mbps each month, and the ISP is oversubscribed to uselessness, that's not Google's vault, that's the ISP's false advertising at work.
No kidding!!! What do you say at this point?
It's not like these telecoms customers are paying them for access to the Internet, so they need to get their revenue from somewhere. Oh, wait...
This is not cable TV, you can't "unbundle premium channels", stop clinging to your ancient business models and come up with a good one.
What I don't think they've fully thought out is the end-game. Possible options:
1) Google pays them. Google then starts getting invoices from every ISP around, from the little mom-and-pops to the tier-1s demanding a cut of the pie.
2) Google cuts them off so that the above doesn't happen. These ISPs customers start screaming "Why am I paying you for access to the Internet, when you aren't providing it?" and they start switching to other providers that aren't pulling this.
Come on, telcoms! You're already charging users for access to the Internet, and the businesses they visit for access to the Internet. How many more times do you need to get paid?
They seem to think they're in a position of power because they control the "eyeballs", but those eyeballs will go to another provider if you don't provide access to the services they want.
Exactly. Just as it has been "jumping down the throats" of successful European businesses for years. You say successful, I say abusive and corrupt. Go figure.
Indeed. The bit that really got me was:
Some European telecoms groups fear Google will reduce them to 'dumb pipes'
That is really all that they are, or at least should be. They are not content providers, they are merely facilitators.
which is totally what she said
All this bitching, be it in the US or the EU, is just about the telecoms wanting to double-dip. All bandwidth is paid for, one way or another. In the case of extremely large connections, like connections between Tier-1 ISPs, the cost is shared between the two ISPs. When they peer, it is an agreement where they say "You pay the costs of your equipment and lines, we'll pay the costs of ours, and we don't charge each other anything to trade data." At every level down from there, it is paid by a smaller consumer. If you are a smaller ISP, you pay the bigger ones for access to their networks. Individuals, businesses, etc then pay those ISPs for access to their network. All the bandwidth is being paid for.
They just want to double charge. They want to tell Google that they should have to pay because Google's data goes over their network.
Of course, if push came to shove, I'd bank on Google winning. Dumbass ISP X says "Ok, we are throttling Google traffic and/or blocking Youtube." Google says "Ok, we are blacklisting all your IPs and showing your users a page that explains what dicks you are and what you need to change for us to restore access." My bet? Consumers get furious at their ISP and either force a change, or simply switch to a new one.
A dumb pipe is precisely what you are, and should continue being.
The ISPs have it all backwards, presumably with full knowledge of the real problem. The customer pays for a connection to the internet. The customer then uses it to access popular services, like Youtube or Facebook or any other of this months fad.
Many ISP has vastly oversold their capacity to their customers and engaged in price fights that has made internet access well below what they should cost. They know its going to be a cold day in hell before the customers agree on a big price hike this late in the game so they try to wring money out of the popular services the customers use their bandwidth on.
Since the ISPs sell access to the internet they have nothing, absolutely nothing they can demand from services on the internet. They made this mess by charging to little for all to much bandwidth, well, sucks to be wrong dont it?
HTTP/1.1 400
Maybe their concern is that it'll become obvious to everyone that they're dumb pipes, and that they're dumb pipes whose business model, pricing infrastructure can't cope with piping all that well.
I think the reasoning of the ISP's is not that Google is causing their pipes to get clogged up, but that Google is succesful with their services because the ISP's are providing their customers with bandwidth. If they didn't provide the bandwidth, Google wouldn't even exist.
If they didn't provide the bandwidth, they wouldn't exist, as their customers would switch to their competitors who did provide that bandwidth.
They're trying to get a free ride off Google's success, when all they really are is "dumb pipes". Google doesn't reduce them to that, it's what they are by nature, and for some reason they desperately wish they were something else.
The EU ISPs aren't the first ones who suggested this.
To the ISPs who complain that Google turns you into a "dumb pipe:" Yes, that is the idea. That is the service that we, as consumers, buy from you. We would be quite happy if we could lease some relatively inexpensive, and very dumb pipe. Google doesn't pay you to ship their content, because *we pay you to allow us to fetch that content.* Last I checked, you made some decent money doing so. Stop treating our broadband connections as a revenue stream and start treating it as the service it once was.
No it's worse than that.
How it is:
User pays their ISP for their connection
Server owner pays their ISP for their connection.
How the ISP's want it:
User pays their ISP for their connection
Server owner pays their ISP for their connection.
Server owner pays every other ISP again and again and again.
They were always dumb pipes. They pretended that they had content in order to push out the small ISP's. When people learned what the Internet was about the stopped using the ISP's content. Too bad the small ISP's are no longer here to testify.
DRM? No thanks, I'll just get it somewhere else...