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Google co-founder Sergy Brin, one of Google's most avid net neutrality proponents, candidly admitted today in Google's 1Q08 earnings call with investors, that Google "improved" its international search quality by "demoting non-country search results" on Google's improved country home pages.

This is interesting for a few reasons.

The more we learn about Google's behavior in the FCC's 700 Mhz auction the more clear it is Google acted improperly and "gamed" the auction and Fleeced the American taxpayer as I explained in my original post on this subject.

In a breakthrough agreement and announcement (see copy below), Comcast and Pando Networks, (the leading managed p-2-p content delivery service) agreed to:

• Lead creation of a "P2P Bill of Rights and Responsibilities" for P2p users and ISPs; and
• Create a process to better "share test methodologies and results" among all P2P providers and ISPs so everyone can:
  • Learn how P2P providers can optimize their applications for all types of networks; and
  • "More efficiently deliver legal content."

This is a profoundly significant development because it solves multiple thorny problems:

First, it breaks through and resolves the polarized net neutrality discussion where proponents only talk about ones own Internet "rights" but don't acknowledge the "responsibilities" that accompany any "rights" or acknowledge the effect those "rights" can have on the "rights" of others.

Kudos to John Markoff of the New York Times for a excellent, informative, and balanced article about the ongoing debate over where the U.S. really ranks in the world on Internet/broadband infrastructure.   

• The article, "Study Gives High Marks to U.S. Internet," does a good job of letting both sides of this fierce and ongoing debate get in their best points.

First, the article shares the news of the seventh annual World Economic Forum report produced by a French Business School which shows that the U.S. ranks 4th up from 7th last year and which contrasts with the more narrow OECD study that focuses on broadband penetration and shows the U.S. ranking lower and falling.

Second, what I most appreciated was that the article candidly explored that there are two opposing world views at work trying to use statistics and studies to promote their world views.

My eyebrows raised when I read the FT's article: "Google loses talent that turned chos into capital."

What attracted my attention is that Google is reacting to the ~37% drop in Google's stock price by spending shareholders money on giving restricted stock to employees who are no longer satisfied with stock options.

I wonder what the price tag will be for this, it could be significant....

Many have broadly swallowed Google's "spin" that Google really "won" by losing the 700Mhz auction -- without digesting the serious implications of Google's public admission.   

• So needy to convince everyone that Googlers, yet again, proved themselves to be the smartest people alive, Google hasn't realized that they have unabashedly admitted to de facto gaming and manipulating an official Government auction statutorily-created to fully reward taxpayers for commercial use of public airwaves. 
• Miguel Helft of The New York Times has the best coverage of Google's actions in the auction in his article: "An Auction That Google Was Content to Lose." 
  • “Our primary goal was to trigger the openness conditions,” said Richard Whitt, Google’s Washington telecommunications and media counsel."
  • The article goes on to explain its nonsensical bidding strategy of bidding against itself: "For much of the first week, Google gradually topped its own bids. With no competitors emerging, anxiety grew."  

So what's wrong with what Google did?  

First and foremost, Google's flagrant manipulation of the auction rules and process fleeced the American taxpayer out of at least $7 billion, by my estimate.

It was very welcome, but not surprising news, that FCC Chairman Martin and a majority of the FCC plan to deny eBay-Skype's petition to apply 1960's "Carterfone" monopoly regulations on today's wireless competitors.

This was not a close call. Carterfone regulations were appropriate forty years ago with a monopoly and no competition. However, dusting off ancient regulations for a bygone monopoly era have no business or relevance today. 

The facts are that Americans enjoy more wireless competition than most any country in the world, enjoy the lowest or near lowest wireless prices in the world, and use about four times more wireless minutes than our european counterparts, because of the dramatically lower prices -- all per the American Consumer Institute. 

• The market is serving consumers excellently, and vastly better than regulators could ever hope to.

The Skype petition is an excellent evidence that the net neutrality movement does not believe in competition policy or a free market Internet, but believe in a government managed Internet.

• The FCC majority rightfully understands that government control and regulation of the Internet would be an unmitigated disaster for all concerned.  

I must admit I have been amused watching the market's angst over trying to figure out if Google's growth is slowing down given that Comscore has reported that paid clicks have fallen 3% from January to February of this year.

First, I am amused because Comscore also showed that Google gained market share during that same period from 59.2% from 58.5%. 

Apparently, Yahoo is trying to douse itself with some "Microsoft-repellant" in joining Google's OpenSocial allance and forming a non-profit OpenSocial Foundation with Google and MySpace.

While Yahoo's OpenSocial press release never mentioned Microsoft, the impetus for this change of heart by Yahoo was clearly a way to "dis" Microsoft and make Yahoo marginally less attractive to Microsoft.

CNET highlights new Comscore research that shows that mobile broadband is the fastest growing type of broadband.

• One would think this hot consumer demand for "mobility" would universally be viewed as a good thing, but it isn't viewed that way by pro-regulation/net neutrality proponents.  
• They fear rapidly increasing consumer demand for mobile broadband will undermine political support and the rationale for their pro-regulation proposals to regulate and subsidize one primary stationary broadband provider.

Proponents of a new National Broadband Strategy have two huge vulnerabilities:

• A technological bias that American consumers only want fast stationary broadband speed (and not mobility too); and
• An anti-competition policy bias that the development of broadband competition over the last several years isn't working and can't work.

Those powerful policy biases against: