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How much do Online Giants pay for Broadband?
Submitted by Scott Cleland on Fri, 2006-08-04 10:48
Google, Yahoo, eBay, and Microsoft continue to try and hide how much the average American subsidizes their market-leading 80-90% gross profit margins.
Net neutrality is a dressed up name for a regulated average-pricing sheme. Under NN, below-average bandwidth users, the vast majority of Americans, pay much higher broadband prices in order to subsidize the average price that bandwidth hogs pay -- and bandwidth hogs make up a relatively small percentage of Internet users.
What Google, Yahoo, Microsoft, eBay, Amazon don't want anyone to know or figure out is that they are among the largest consumers of bandwidth in the country, and they pay a relatively minscule amount for it. It's certainly easier to be so super profitable if they can sucker everyone into paying their bills for them.
Itsournet.org, the coalition funded by the online giants, is quoted in Communications Daily today that the four Bells make $14 Billion in selling access to content companies. The deception here is their attempt to imply that the online giants pay a lot for bandwidth -- they do not. The online giants actual bandwidth bill would be easy for them to estimate, however, because it is so embarassingly low, they don't want to disclose it.
So Google, Yahoo, Mircosoft, eBay, and Amazon, how about coming clean with your coaltion and the American people and tell us how much you actually pay for your bandwidth. If you are such big contibutors to covering the costs of the Internet, you have nothing to hide -- disclose it!