Someone tell Verizon their customers are paying for that “free lunch”: According to this story in the Washington Post,” A Verizon Communications Inc. executive yesterday accused Google Inc. of freeloading for gaining access to people’s homes using a network of lines and cables the phone company spent billions of dollars to build.
“The network builders are spending a fortune constructing and maintaining the networks that Google intends to ride on with nothing but cheap servers,” Thorne told a conference marking the 10th anniversary of the Telecommunications Act of 1996. “It is enjoying a free lunch that should, by any rational account, be the lunch of the facilities providers.”
What’s next? Is Verizon going to ask for a commission from any business transaction its customers make using their telephone? Verizon customers are purchasing bandwidth from Verizon and using Google to help them get to where they want to go using that bandwidth. I can’t blame the Verizon (and other telcos and media companies), however. They all want to hold-up Google for the same reason Willie Sutton held-up banks.
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