Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Is There A Google-Verizon Conspiracy Afoot?

Here's one for conspiracy theorists: Google is negotiating to pay Verizon cash as a backdoor way to deny bandwidth to Google's smaller competitors. Sounds far-fetched? Then why has Verizon announced that it's negotiating with Google about the payments?

Verizon CEO Ivan Seidenberg recently said that providers of bandwith-intensive Internet applications, including Google, should "share the cost" of running broadband networks. In other words, they should fork over cash to Verizon.

SBC has been making this demand for a while, and now Verizon is apparently joining this scheme that would make even Tony Soprano blush.

The big news is that Seidenberg says that Google and Verizon are negotiating exactly how a payment scheme would be structured.

Why would Google agree to a blackmail plan like this? It's a way to kill off less-well-off competitors. Google can afford to make big payments for lots of bandwidth; smaller competitors can't. If Verizon can charge sites with for bandwidth-intensive applications, then Google will be able to pay and stay in business, but sites without the cash will be denied the bandwidth, effectively putting them out of business.

  • 1