[IP] ** this is for the BIG birds"" Charging "content providers" is now beginning.
Begin forwarded message:
From: DV Henkel-Wallace <gumby@xxxxxxxxxxxxxxxxxx>
Date: January 17, 2006 1:37:30 PM EST
To: David Farber <dave@xxxxxxxxxx>
Subject: Charging "content providers" is now beginning.
Dave,
So now it begins.
I'm especially disappointed that Cuban gets this wrong.
-d
BellSouth wants new Net fees
http://www.marketwatch.com/news/story.asp?guid=%7B02432D2D-1EE0-4037-
A15F-54B748D6CF26%7D&siteid=mktw&dist=
By Frank Barnako, MarketWatch
Last Update: 4:40 PM ET Jan. 16, 2006
WASHINGTON (MarketWatch) -- BellSouth Corp. confirmed Monday that it
is pursuing discussions with Internet content companies to levy
charges to reliably and speedily deliver their content and services.
Bill Smith, chief technology officer at BellSouth justified content
charging companies by saying they are using the telco's network
without paying for it.
"Higher usage for broadband services drives more costs that we have
to recover," he said in a telephone interview.
He suggested that Apple Computer might be asked to pay a nickel or
a dime to insure the complete and rapid transmission of a song via
the Internet, which is being used for more and more content-intensive
purposes. He cited Yahoo Inc.'s plans to stream reality TV shows as
an example.
"It's the shipping business of the digital age," Smith said, arguing
that consumers should welcome the pay-for-delivery concept.
BellSouth has discussed its idea with MovieLink, a film-download
service. He called MovieLink an example of the kind of company that
wants customers to have a good experience and would view costs
incurred in the strengthening of BellSouth's Internet capacity as
worthwhile. Smith also said online game companies are likely
candidates for charges.
Over the weekend, Internet entrepreneur and NBA team owner Mark Cuban
wrote on his blog at BlogMaverick.com that such fees are critical to
the survival of the Internet. "Our ability to consume bandwidth is
growing far, far faster than the speed at which it is being added,"
he said. "The more bandwidth we consume, the more Internet traffic
jams we have."
Cuban wants telephone and cable and wireless companies to work out a
way to deliver traffic at various levels of service quality. "Yes,
that will mean some content will cost more if we want it faster," he
conceded. "But that will be our choice."
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