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Net neutrality

Friday, October 7th, 2011 | NEWS & REVIEW

net+neutrality Net neutralityThe first surprise, the proposal submitted by two companies that in the era of convergence technology and telecommunications industries, media and information, it can be regarded as a competitor for one another. Both are big players in the telecommunications, media and global information. Verizon is a telecommunications operator based in the United States, which is able to record revenue of USD 107.808 billion in 2009. The number of employees approximately 222,000 people with operations mainly in the United States. Google is a company that provides various Internet-based services, with major revenue comes from advertising on the internet, particularly through the AdWords program and its search engine. Revenues in 2009, according to Wikipedia was recorded at USD 23 651 billion.

Why both can be considered as competitors to each other? In the converging industries and technologies, the product of both can be substituted. The shift patterns of communication from voice to data, one of them. The telecommunications industry is usually dominated by the telephone service from telecom operators such as Verizon, can now be provided by internet service-based companies, like Google. Many Google applications that provide communications media, such as gmail, google talk, youtube, and others. This year Google started to build an optical fiber-based broadband network that will provide service to 1 Gbps to about 500,000 customers in the United States.

Businesses are increasingly menggurita both. Until the position of the first quarter of this year Google has acquired 63 companies. Recently, Google also launched Nexus smartphone with Android operating system is developed with open source systems. Nexus Although less successful in the market, but the Android operating system has recorded a very high growth supported by manufacturers such as HTC, Samsung, LG, Motorola and others. In fact, according to Canalys research institutions and the NPD Group, Android has dominated sales in the United States beat the Blackberry and the iPhone in the Smartphone market. Verizon also is now not the only telecom operator. Business line was expanded to information and media industries. This led to Google and Verizon have really face to face in the telecommunications industry, media and information.

The second shock, is the core of the proposal from Google and Verizon are shaking the principle of net neutrality in Internet access service. The concept of net neutrality basically the principle that all Internet services and information in the same place, there are no restrictions of your ISP (internet service provider) or the government. It is designed to maintain what is called the open Internet that guarantees the rights of internet users to use or access the services and content choices, and to maintain the balance of competition in broadband services. This concept also bring Barack Obama into the presidency the United States now, because of his support for net neutrality. More about net neutrality, can be viewed at http://en.wikipedia.org/wiki/Network_neutrality

One of the points in the proposal allows service providers to create a special service. This special service was possible to obtain priority traffic, thereby potentially reducing the quality of service or other content. The next consequence is the possibility that premium rates are established for these services.

The third surprise, so far Google is considered as the main supporter of the concept of net neutrality. So Google’s proposal is a joint initiative Verizon is really surprising a lot of parties.

The next question, what’s in it for Google and Verizon? With the proposal, Google, which is the ruler of content and applications on the internet today has a tremendous opportunity to develop these specialized services. Verizon’s broadband network that controls, is also very likely to manage the various types of these services through its network. In the short to medium term, Google is more focused on information and media industry to be working with Verizon that is now stronger in the telecommunications industry. But in the long run, they can really deal as enemies. So be very interesting for us to look at how Verizon and Google’s subsequent conduct maneuvers in the co-opetition, the co-operation as well as competition.

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