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Two-Tiered Internet

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December 15, 2005

Two-Tiered Internet

Heather Green

BW's Cathy Yang has a story about the clash that's building between the Googles, Yahoos, and eBays of the world and the telcos and cable giants who are pushing for regulations that would allow them to charge extra fees for heavy uses of their networks.

Yang writes that this "could result in an Internet of haves, who can afford to pay the network operators more to ensure smooth service, and have-nots. Trouble is, those have-nots may include the Next Big Thing -- whether it be mom-and-pop podcasting or video blogging. The fewer innovative services on the Net, the less reason Web users have to want broadband. Both the network operators and the Internet could lose out in the end."

11:01 AM

digital media

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We have a two-tiered Internet now.

Posted by: Jim Dermitt at December 15, 2005 12:43 PM

I posted an item on my blog this morning related to this story. Rather than repeat myself here is the link ... bottom line:

* The context for this has been building for some time

* This may be a rational private response to regulatory asymmetry -- I haven't had a chance to do the analysis yet.

Posted by: Martin Weiss at December 15, 2005 12:54 PM

Martin's link didn't make it through somehow so I am pasting it here.

Posted by: Heather Green at December 15, 2005 01:07 PM

If you got the dough you can buy anything.

Posted by: Jim Dermitt at December 15, 2005 01:29 PM

I have been for media companies control of content, to regain profit for that content. But I now have the competition of cable and internet from one provider, and phone service from another. And it could as easily be the other way. I don't have wifi, but there is Starbucks at the corner, so I could get even more connections.

Broadband is also opening under many new delivery formats, that mean competition will stay health. And with the development of fuller wireless providers coming into this mix, G3, G4, wifi and wimax, if a content provider can't deliver more levels of content into this competition, others now promise to do just that.

And to gain your subscription more competition will still be built into the ISP mix. If they close one channel, others media now are in place to profit from their obstruction. That is the one thing going for us in this.

Posted by: Mike Reardon at December 15, 2005 09:40 PM

who ownes the wires all this banwidth is going over anyway?

the people, yes thats right the people own it. not the phone companies, the telcoms ect.

we own it, how well because the Federal government regulates it through the FCC.

We own the wires no the telcoms, we just allow them to use it. Its our banwidth not thiers.

If you think I'm out of my mind, go read the regulations on it.

The People own the banwidth not the other way around.

Posted by: real at July 14, 2006 01:51 PM

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