|reply to FFH |
Re: Google Uses 21 Times More Bandwidth than it Pays For
said by telco lobbyist :
The study estimated Googles payment to fund just the U.S. consumer broadband Internet segment to be approximately $344 million in 2008 or 0.8% of U.S. consumers flat-rate monthly Internet access costs of $44.0 billion. Thus Googles 16.5% share of all 2008 U.S. consumer bandwidth usage, is ~21 times greater than Googles 0.8% share of U.S. consumer bandwidth costs or an implicit ~$6.9 billion subsidy of Google by U.S. consumers.
Wow that's idiotic. Do readers really fall for that kind of reasoning?
In fact, Google pays for 100% of its own connection to the backbone, and each "consumer" houshold pays pays for 100% of its connection to the backbone. Google moves more traffic for less money because it's built its own network and gets wholesale rates.
If 16.5% of "consumers" (individual citizens)' traffic is to and from Google, then obviously they are spending 16.5% of their internet access charges on Google.
The fact that Google pays lower rates per gigabyte doesn't mean anyone is subsidizing Google. If A sends a package to B, by UPS for $10, and C pays $20 to get it from B by Fedex, then is C is subsidizing A? Of course not, A is paying the market rate for 100% of A's segment of the transport, and C is paying the market rate for 100% of C's segment of the transport (each at his or her preferred speed).
Of course, if customers of retail ISPs are paying 21x the rate that Google is paying, it means the ISPs may be overcharging them. The excess is going to the retail ISPs' stockholders, not to Google. Evidently we need a public internet infrastucture to avoid this price-gouging by local monopolies or duopolies.
Wow that's idiotic. Do readers really fall for that kind of reasoning?You'd be surprised. The author (Cleland) is repeatedly invited to testify before Congress as an "objective expert" in the field of telecom, despite the fact his words, every last one of them, are bought and paid for (not to mention often make no sense)....