I am doubtful about this claim, because backbone providers are willing to peer with others only when traffic flow is symmetric. Going to a separate network, as these articles suggest, would enable Google to bypass backbone providers entirely for at least a portion of thie search. Is this a reasonable strategy? Is this a way for Google to leverage network economics to its advantage? Would Google be able to offer new services? Is this effectively a replay of the Western Union/AP deal of the 1860s?
20 September 2005
Google WiFi service?
There have been a few stories around lately about Google's entry into computer networking, starting with a report in Business 2.0 in addition to this Reuters article from today. The Business 2.0 article claims that Google could save money by avoiding transit fees it incurs from interconnecting with Internet backbone providers.
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Here is another article about Google's possible wireless plans (free subscription required).
I don't believe that Google would use AP/WU as a template. However, it looks like it has the same kind of content/carrier parallels that AP/WU had. What is different this time? What is the same? What policy interventions (if any) are needed?
Om Malik reports that GoogleNet is expanding rapidly. Clearly, this was well in process before the press began reporting this.
There's more ... Look at Kevin Werbach's thoughts on GoogleNet. His concerns are focussed more on a structural shift in the Internet. He will undoubtedly have more to say about this in future.
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