Google Might Agree to Compensating Access Providers

Way back when, when access providers began complaining in public that huge application providers such as Google were "riding pipes for free," one concern application providers have had is that they might wind up having to pay the access providers fees of some sort to reach customers. That is the business concern behind much, if not most of the support for "network neutrality," on the part of application providers.

But government pressure often goes a long way towards convincing telecom and video ecosystem participants that they need to solve a problem before the government tries to solve it for them. So it is that French regulators are putting pressure on Google that could ultimately lead to Google, and then other application providers, compensating mobile network operators for use of their bandwidth.

A compromise can be found between operators urging direct compensation for investment in faster networks and app providers,” France Telecom SA Chief Executive Officer Stephane Richard says. The threat is serious enough that Google chairman Eric Schmidt recently has been saying Google and access providers are "co-dependent."

To be sure, Google would rather not encounter a new cost of doing business, were it to be required to help participate in some way in assisting access providers to keep expanding bandwidth. But the French action suggests serious pressure is mounting, and Google might not want to have governmental authorities make those rules.

The changes show that the broadband business remains dynamic, but also shows the increasing need Google has to work with and shape regulatory thinking. Google isn't a common carrier, but it is part of a common carrier ecosystem, and that means paying attention to regulators who can shape, define or eliminate revenue models.

Google Might Agree to Compensating Access Providers