Friday, May 26, 2006

One Step closer to "Net Neutrality"

Today, a Congressional House Panel voted to allow "Net Neutrality", which is great news for content providers (think: Google Videos and Apple Itunes) but bad news for broadband providers (think: AT&T, Qwest, Cablecos, etc...)

I'm guessing a few lobbyists are going to get fired for this one. After all, much of the Bells' investment strategy relied on getting both you and the content-provider to pay at the same time. Now, they have to let Google pile on all the high-broadband content they want, and invest in the infrastructure to carry it.

Of course, Google would argue, they're doing the Bells a favor: After all, DSL is plenty fast for e-mail and other now-low-tech-apps. If someone, like Google, doesn't dream up new high-bandwidth IP-based applications, then no one will care how much FTTH (Fiber to the Home) Verizon invests in.

Verizon may think: "Build it and they will come", but Google thinks it can help with a few high-bandwidth digital apps to serve as a carrot.

In the end, they need each other, I guess.

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