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	<title>Comments on: Is broadband the gateway drug for the web or the drug itself?</title>
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		<title>By: A S</title>
		<link>http://gigaom.com/2011/08/22/is-broadband-the-gateway-drug-for-the-web-or-the-drug-itself/#comment-649755</link>
		<dc:creator><![CDATA[A S]]></dc:creator>
		<pubDate>Tue, 23 Aug 2011 05:42:13 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/?p=395710#comment-649755</guid>
		<description><![CDATA[I am not sure what the author expects of ISPs. I don&#039;t want my electric utility to get into the business of offering me refrigeration or air-conditioning services. I want them to just offer me reliable electricity at the lowest possible price. Same thing with my ISPs - I want them to be dumb pipes concentrating on offering me great bandwidth at the lowest possible price. I don&#039;t want them getting into any services I consume over the network. That will lead to some conflicts of interests like favoring their own services versus the competition&#039;s services.]]></description>
		<content:encoded><![CDATA[<p>I am not sure what the author expects of ISPs. I don&#8217;t want my electric utility to get into the business of offering me refrigeration or air-conditioning services. I want them to just offer me reliable electricity at the lowest possible price. Same thing with my ISPs &#8211; I want them to be dumb pipes concentrating on offering me great bandwidth at the lowest possible price. I don&#8217;t want them getting into any services I consume over the network. That will lead to some conflicts of interests like favoring their own services versus the competition&#8217;s services.</p>
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		<title>By: Bert</title>
		<link>http://gigaom.com/2011/08/22/is-broadband-the-gateway-drug-for-the-web-or-the-drug-itself/#comment-649504</link>
		<dc:creator><![CDATA[Bert]]></dc:creator>
		<pubDate>Mon, 22 Aug 2011 20:13:46 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/?p=395710#comment-649504</guid>
		<description><![CDATA[The basic business model for an ISP has been working very well. The large masses bear the costs of a few heavy users. Perfect as long as my parents are reading a webpage or two and send around pictures of their grandchildren. But what happens if they start sending HD movies or buy a Google TV settopbox and they start watching HD youtube movies? Suddenly the network is filled to its rim with heavy users, all trying to watch Charlie bite a finger. And while Google is looking for more space for its stockpiling profits (a large consumer electronics company, anyone? They&#039;re two-for-one today), the ISP is left with the costs of network upgrades and interconnecting traffic.

In reality our broadband usage is already metered. But the costs are largely with the ISPs and the profits are with the content providers. Like Amazon is demonstrating with the Kindle: your chances to succeed as a content provider increase if you ensure the means to your content are affordable. Amazon subsidized the Kindle to sell more e-books, Google subsidized it&#039;s Android OS to get mobile ad-views and will subsidize the broadband connections to ensure people will keep watching it&#039;s ads and use it&#039;s cloud services. 

If the value of broadband is not in the broadband itself, then the ISP must ensure that the user will pay for the broadband service as a means to get to the real booty. Like the electricity company that meters the electricity we need keep our house cool and power up the 42incher to watch the Superbowl. It is up to the content providers to decide if the ISP will send the bill to the consumer or if the costs will be hidden in the price of the real value we are looking for: how hungry is that Charlie.]]></description>
		<content:encoded><![CDATA[<p>The basic business model for an ISP has been working very well. The large masses bear the costs of a few heavy users. Perfect as long as my parents are reading a webpage or two and send around pictures of their grandchildren. But what happens if they start sending HD movies or buy a Google TV settopbox and they start watching HD youtube movies? Suddenly the network is filled to its rim with heavy users, all trying to watch Charlie bite a finger. And while Google is looking for more space for its stockpiling profits (a large consumer electronics company, anyone? They&#8217;re two-for-one today), the ISP is left with the costs of network upgrades and interconnecting traffic.</p>
<p>In reality our broadband usage is already metered. But the costs are largely with the ISPs and the profits are with the content providers. Like Amazon is demonstrating with the Kindle: your chances to succeed as a content provider increase if you ensure the means to your content are affordable. Amazon subsidized the Kindle to sell more e-books, Google subsidized it&#8217;s Android OS to get mobile ad-views and will subsidize the broadband connections to ensure people will keep watching it&#8217;s ads and use it&#8217;s cloud services. </p>
<p>If the value of broadband is not in the broadband itself, then the ISP must ensure that the user will pay for the broadband service as a means to get to the real booty. Like the electricity company that meters the electricity we need keep our house cool and power up the 42incher to watch the Superbowl. It is up to the content providers to decide if the ISP will send the bill to the consumer or if the costs will be hidden in the price of the real value we are looking for: how hungry is that Charlie.</p>
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		<title>By: Lindsworth Horatio Deer</title>
		<link>http://gigaom.com/2011/08/22/is-broadband-the-gateway-drug-for-the-web-or-the-drug-itself/#comment-649347</link>
		<dc:creator><![CDATA[Lindsworth Horatio Deer]]></dc:creator>
		<pubDate>Mon, 22 Aug 2011 13:28:45 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/?p=395710#comment-649347</guid>
		<description><![CDATA[This is going to be a hard sell for Telecoms Providers, who spend million buying their Telecom Gear from Telecom Equipment suppliers. as far as they are concerned, due to the long turnover period to profitability after installing their equiptment, they are trying to make as much money from everything as possible to achieve this. Thus even older more established Telecom providers are unwilling to &quot;give away&quot; even a dollar on anything they can charge for. Broadband would have to become a right akin to right to life, liberty ect. under the UNHCR (Unite Nations charter for Human Rights) before they see Internet as a gateway or platform for services, especially as they do not host these services themselves!!

http://www.geezam.com/jamaica%E2%80%99s-low-net-penetration/]]></description>
		<content:encoded><![CDATA[<p>This is going to be a hard sell for Telecoms Providers, who spend million buying their Telecom Gear from Telecom Equipment suppliers. as far as they are concerned, due to the long turnover period to profitability after installing their equiptment, they are trying to make as much money from everything as possible to achieve this. Thus even older more established Telecom providers are unwilling to &#8220;give away&#8221; even a dollar on anything they can charge for. Broadband would have to become a right akin to right to life, liberty ect. under the UNHCR (Unite Nations charter for Human Rights) before they see Internet as a gateway or platform for services, especially as they do not host these services themselves!!</p>
<p><a href="http://www.geezam.com/jamaica%E2%80%99s-low-net-penetration/" rel="nofollow">http://www.geezam.com/jamaica%E2%80%99s-low-net-penetration/</a></p>
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		<title>By: KenG</title>
		<link>http://gigaom.com/2011/08/22/is-broadband-the-gateway-drug-for-the-web-or-the-drug-itself/#comment-649330</link>
		<dc:creator><![CDATA[KenG]]></dc:creator>
		<pubDate>Mon, 22 Aug 2011 12:42:57 +0000</pubDate>
		<guid isPermaLink="false">http://gigaom.com/?p=395710#comment-649330</guid>
		<description><![CDATA[If the ISPs start charging by the byte, they will reduce the value of the web.  People will worry about over charges, and stop surfing as freely.  They will not like being charged for the ads they receive, and will avoid some ad-supported websites. ISPs are, for the most part, very profitable, and would be making a big mistake if they tried to increase those profits by raising prices.  Their costs are only marginally affected by heavy users of bandwidth, so their only reason for changing their pricing model would be sort-sighted greed.

I don&#039;t think people are understanding why Google is doing the fiber project.  Like the Nexus One, which many people viewed as an attempt to take over an industry, Google is using the KC fiber project to demonstrate that fiber to the home can be profitable.  Google created the Nexus One to set the standard for flagship Android phones, and more importantly, to try to wean carriers and consumers off the bundled phone and service plans (which should be outlawed anyway).  That attempt failed, mostly because consumers are challenged by math; they could not understand that they pay carriers for the subsidy many times over.  Carriers obviously like the bundled model, because it locks consumers into their plans.

The two main telcos in the US have been slow to roll out FTTH, and Google understands the value of fiber to the entire web industry.  Every business needs constant recycling of profits, otherwise it stagnates and stops growing.  ATT and VZ would rather shift customers from wired broadband to broadband wireless, where they can charge a lot more, and have less competition, so they have been reluctant to seriously invest in fiber.  The KC project is Google&#039;s attempt to expose how wrong they are, and hopefully put some pressure on ISPs to upgrade their plant.  If Google can make a profit on KC, then other companies and entrepreneurs may follow their lead and build fiber networks in other cities.]]></description>
		<content:encoded><![CDATA[<p>If the ISPs start charging by the byte, they will reduce the value of the web.  People will worry about over charges, and stop surfing as freely.  They will not like being charged for the ads they receive, and will avoid some ad-supported websites. ISPs are, for the most part, very profitable, and would be making a big mistake if they tried to increase those profits by raising prices.  Their costs are only marginally affected by heavy users of bandwidth, so their only reason for changing their pricing model would be sort-sighted greed.</p>
<p>I don&#8217;t think people are understanding why Google is doing the fiber project.  Like the Nexus One, which many people viewed as an attempt to take over an industry, Google is using the KC fiber project to demonstrate that fiber to the home can be profitable.  Google created the Nexus One to set the standard for flagship Android phones, and more importantly, to try to wean carriers and consumers off the bundled phone and service plans (which should be outlawed anyway).  That attempt failed, mostly because consumers are challenged by math; they could not understand that they pay carriers for the subsidy many times over.  Carriers obviously like the bundled model, because it locks consumers into their plans.</p>
<p>The two main telcos in the US have been slow to roll out FTTH, and Google understands the value of fiber to the entire web industry.  Every business needs constant recycling of profits, otherwise it stagnates and stops growing.  ATT and VZ would rather shift customers from wired broadband to broadband wireless, where they can charge a lot more, and have less competition, so they have been reluctant to seriously invest in fiber.  The KC project is Google&#8217;s attempt to expose how wrong they are, and hopefully put some pressure on ISPs to upgrade their plant.  If Google can make a profit on KC, then other companies and entrepreneurs may follow their lead and build fiber networks in other cities.</p>
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