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?
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.
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
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.
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