Google Denies Verizon, Google Verizon Deal

August 5, 2010 by USA Post 

Google Denies VerizonGoogle Denies Verizon, [Dailyfinance] Community awareness group and the medium were up in arms on Thursday by news that Google (GOOGLE) and Verizon (VZ) have been discussing a service level agreement, which would allow wealthy content providers like Google to pay more to broadband providers like Verizon to prioritize content and increased network speed networks from Verizon. But the two tech giants are denying the reports..

If that agreement were to occur, Google could pay for one of his videos on YouTube to take precedence over, for example, a video of a launch site that is unable to pay such fees on Google can afford. The plan would be in direct opposition to the concept of “net neutrality,” a policy supported by the Federal Communications Commission and consumer advocates, calling on Internet service providers to address all the legal aspects of web traffic equally and not discriminate against content that originates with a rival provider.

Instant Outcry

The news of the talks, which was originally published in The New York Times and then published in The Wall Street Journal and a litany of media (including DailyFinance) provoked an outcry from the net neutrality. Josh Silver, the president of the nonprofit media reform Free Press, issued a statement saying in part: “This abuse of the open Internet would put the final resting Google mandate to” do no evil. ” ”

Another public interest group called Public Knowledge expressed similar alarm. “The point of a rule of net neutrality is to prevent large companies in the Internet division between them. We do not need rules to protect Google and Verizon, but we need a rule to protect customers from Google and Verizon and Google and Verizon competitors. ”

Media industry guru Jeff Jarvis Buzz Machine‚Äôs writer and author of What Would Google Do? Google says the agreement is the “devil’s pact with Verizon for Internet service levels.”

Such an agreement would mean what

Everyone can calm down, at least for now. Google says that the talk is all bunk. On Twitter, issued a statement that the New York Times article was all wrong and remains committed to an open Internet. Verizon also says in his blog that the Times policy on talks with Google are wrong. “Our goal is an Internet policy framework that ensures openness and accountability, and incorporates the specific authority of the FCC, while maintaining the investment and innovation. To suggest this is a commercial agreement between our companies is totally wrong. ”

For many, the retractions are a relief, but the incident raises some very important points. If no such agreement was ever to take place, would be a clear victory for broadband providers such as Verizon and AT & T (T). They would be given the power to slow or speed up, select Web traffic. That goes against the premise that the Internet should be free and open to everyone.

That power to control the Web would have far reaching consequences that could hinder economic growth. Net neutrality creates a playing field that encourages new business start-ups and innovation. Thanks to a largely unregulated Internet, companies like Google, Facebook and Amazon (AMZN) was able to forge new business and compete with larger, more established companies.

Why not charge what the market will bear?

Stifle it, and stifle capitalism. Forget about starting your own business based on the Web. Regardless of how well their service is, your site might load more slowly and that the operations may take more than a partner provider of broadband services is paying more. On one side, your business would be severely handicapped.

Service providers, of course, say that they spend billions of dollars to acquire wireless spectrum and fiber network construction. Should not be able to charge what the market will pay for your services?

Google and net neutrality flop Verizon flip these issues have emerged once again. And we will hear more about net neutrality. The FCC has recently been holding meetings with broadband providers on the subject. So far, no formal rules have been released. But even if Google and Verizon reach their own agreement, a decision by the FCC would be intended to be broad enough to overtake its decision.

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