Peter,

That's where the argument hits the road.
Since BB Provider choice is so limited, you will end up with a walled garden like Prodigy.

But would that really be that bad for the ISP industry? (I don't believe I jsut said that :-) Going back to the old days where an ISP was both the content provider connection provider (ie: CompuServe and original AOL).

Wouldn't it create more demand for Internet End Users to start demanding options for more connectivity providers? Right now, I do not think we (ISPs) get the supprot from Consumers that we deserve. We've forced lower prices in the industry, we've given our lives to deliver options to consumers, but way to many of consumers are satisfied accepting the lowest cost alternative from the monopolies with little interest to support the indepent ISP in return. If their content was restricted, they would demand more provider options. Possibly even have the need to subscribe to more than one ISP provider simultaneously. And wouldn' it prevent content monopolies, if ISPs had the choice to force other content providers to have the option to serve consumers. Meaning that even if Google was the best, they wouldn't wipe out every one else, because the other content providers could find smaller ISPs to subsidize them, after they blocked Google. The truth is I think its scarry when ANY company has to large a lock on the consumers or to large a market share, wether it be a content provider or a connectivity provider. How do you force Consumers to spread out their business between multiple providers, for the over all benefit of competition in the market place?

Tom DeReggi

BTW, on MY cell phone, there is no per minute charge for the internet, but it is a limited choice of sites.
Just what Nextel lets me see/have/look at - when it is available.

- Peter

Sam Tetherow wrote:

From a marketing/sales perspective the proposed plan is a "no win" for the broadband providers. If I'm Comcast and I go to Google and say pay up or else, what is my follow through? If Google says "no thank you" as I'm sure they will, you have just told your customer that their internet experience is going to be worse than before because Google refused to pay for bandwidth on your network. Now as Joe Customer on Comcast's network I have two choices regardless of how I feel about Google not paying up. I can either put up with crappy or no service to YouTube and Google or I can go somewhere else.

The problem with this scenario, from a Comcast perspective, is that the customer's choices have no positive impact on their Comcast experience. The best they can do from a Comcast perspective is put up with a degraded internet experience. Not a choice any businessman would want to force on a customer.

If you are Comcast going to Google, what do you ask for? I would think anything less that $0.50/customer would be a waste of time. Raising your broadband price $0.50/month is not going to cause a big stir and mass migration. Sure you are going to get other people to pay eventually, but how many can really afford it beyond Google, Yahoo and MSN for instance.

Now, from a Google perspective $0.50/customer/month for Comcast is going to be $4.5 mil extra every month and for the top 5 providers it is going to be $16 mil per month. I doubt they are going to be able to pay .

And finally, from a competition perspective, you are Verizon and Comcast has just issued the ultimatum to Google who said no, do you follow suite and hit Google up as well or do you now advertise that you have an 'express lane' to Google and Comcast customers are more than welcome to the fold. Instead of getting $0.50/customer out of Google you get X many new customers from Comcast. The content provider's pockets aren't deep enough to make sticking them more profitable than sticking your customer. It is back to a volume question. Do I sell 10 items at a $1000 markup and make $10000 or do I sell 10000 items at a $1 markup to make my $10000. You are going to have a lot more potential customers on the $1 markup.

I just don't see the teeth in the argument. Way too many things have to align, against natural market forces, make the doomsday a reality.

   Sam Tetherow
   Sandhills Wireless

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