Google Fiber: No Charge For Peering, No Fast Lanes
An anonymous reader writes "Addressing the recent controversy over Netflix paying ISPs directly for better data transfer speeds, Google's Director of Network Engineering explains how their Fiber server handles peering. He says, 'Bringing fiber all the way to your home is only one piece of the puzzle. We also partner with content providers (like YouTube, Netflix, and Akamai) to make the rest of your video's journey shorter and faster. (This doesn't involve any deals to prioritize their video 'packets' over others or otherwise discriminate among Internet traffic — we don't do that.) Like other Internet providers, Google Fiber provides the 'last-mile' Internet connection to your home. ... So that your video doesn't get caught up in this possible congestion, we invite content providers to hook up their networks directly to ours. This is called 'peering,' and it gives you a more direct connection to the content that you want. ... We don't make money from peering or colocation; since people usually only stream one video at a time, video traffic doesn't bog down or change the way we manage our network in any meaningful way — so why not help enable it?'"
They make money from your monthly subscription fees etc.
The other companies do the same things, TWC, AT&T, Comcast all make money through your monthly internet bill and have been VERY profitable in doing so. The problem is that they want to keep their customers and make MORE money without spending any of their profits on upgrades or peering/colocation.
It's not like TWC/Comcast has to rip out and replace any cabling, the existing infrastructure (yes, copper) works well for speeds up to what Google Fiber is offering and more (100Mbps - 1Gbps). Even at current speeds (1-10Mbps), there is PLENTY of headroom for most people, Netflix doesn't take more than a few hundred kbps per stream. They just don't want to invest in a bigger link to Netflix/YouTube or letting them colocate in their spaces, they think that they can switch their customers who are paying for Internet into connecting to their private network (MSN/AOL style) and if anyone wants to go outside their private network, they should pay extra. And they can do this because they have been granted a monopoly by the government (by splitting up Ma Bell, they no longer needed to be regulated, the FCC has been paid for to not interfere and they have no-compete clauses with each other).
Thankfully there are plenty of startups starting to eat their market share (be it Google, Greenlight, ...) because they are offering better service than the incumbents for a heck of a lot cheaper. Now (at least in those areas) they have to start being competitive and suddenly, speeds CAN go up and prices CAN drop; the prices are not tied to actual value, they are tied to what the market will bear and since Internet has become a necessary utility for most people, the market has to bear a lot.
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This is Google's hedge against increasingly higher costs for peering and neutrality breaking ISP's, so why would they then turn around and be hypocrites by ruining the very reason they're moving intro infrastucture to begin with?
Android started in much the same way, to avoid telcos getting control over the content people access on their phones. While the base OS of Android is still free, a lot of the standard applications are now licensed from Google and the terms for licensing them are becoming more strict. Google's fiber is neutral today, but that doesn't mean it will stay neutral forever.