Wednesday, April 11, 2007

Network neutrality

Most of us have already heard about Network neutrality; there are several definitions for it, but the basic principles are: networks that don't favour some destinations over others, or classes of application (eg WWW) over others (eg online gaming or VoIP).
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After making huge investments on building FTTx new networks across the US, companies such as AT&T and Verizon point their fingers to big internet companies by saying they are using their networks for free without any return for those carriers:
•AT&T CEO: “Google, Yahoo! are getting a free ride on AT&T expensive new network – we have spent a lot of capital and we have to have a return on it!”
•Verizon CEO: “Google, Microsoft and other providers ought to share the cost!”
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On this discussion there are different positions to be taken - some argue networks shall be neutral and others don't. Arguments on the net neutrality side are accusing AT&T and Verizon for blocking innovation for start-ups and small companies.
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Some opponents to net neutrality, put the question on a different angle; Odlyzko, University of Minnesota: “What makes them think that they are going to charge Google, as opposed to Google charging them?”
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However, this discussion might not be new, fast broadband connections already cost more than slower, both for consumers and business. Given that carriers had put big money on new fast networks, on thing is for sure, or telecoms charge subscribers more or they pursue new business models where big internet companies and content providers pay part of the bill.

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