Wednesday, August 4, 2010

What the Google, Verizon Deal Tells You

Verizon Communications Inc. and Google Inc. reportedly have reached their own deal on how to handle Internet traffic management, Bloomberg reports.

The compromise, according to Bloomberg, would restrict Verizon from selectively slowing Internet content that travels over its wires.


That typically implies"no packet prioritization." Verizon, with its FiOS network nearly completely in place, seems to have been willing to concede that it has enough headroom, in terms of bandwidth, not to have to resort to packet prioritization at all when it needs to manage its broadband access business, at least if I am reading the report correctly, and if the report is correct.

What is not clear from this report is whether "best effort" services can be supplemented by application-optimized features. The compromise, as reported by Bloomberg, seems to suggest such quality measures would not be allowed on the Verizon fixed network.

The apparent compromise, though, is that Google seems to have agreed Verizon Wireless can do so to preserve network quality of experience at times of peak load.

There are some clear technology issues here, namely the fact that no mobile network ever has as much bandwidth as a fiber-to-home network. Network management typically is a more-urgent issue for a wireless network.

But the agreement likely also reflects the "fact" that Verizon's wireless network is viewed as the more strategic of the two networks as well. If something has to be compromised, Verizon seems to have concluded that bargaining away some freedom on its FiOS network is wise if it preserves ability to shape traffic on the wireless network.

It isn't so clear other service providers will be able to so "easily" strike this deal, since Verizon is among the few firms to embrace FTTH so universally. It simply has more bandwidth available to deal with congestion issues.

Still, the key issue here appears to have been Verizon's clear understanding that it could not yield on mobile network managment. Trading away a bargaining chip--no packet prioritizaton on the landline network--seems to have been part of the strategic thinking, at least if the Bloomberg report is correct. 

There could be some downstream impact on packet prioritzation suppliers, though. Verizon will still want to know what is going on. But it will not need tools to shape traffic, since it seems to have agreed it will not do so.

It isn't immediately clear how all the ramifications will work out. But Verizon seems to have set itself firmly on a path that preserves "best effort" as the only service level consumers can buy.

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