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worth reading the economic arguments djf The High-Speed Money Line
From: David Farber <dave () farber net>
Date: Mon, 6 Mar 2006 09:24:45 -0500
Begin forwarded message: From: Monty Solomon <monty () roscom com> Date: March 6, 2006 1:05:01 AM EST To: undisclosed-recipient:; Subject: The High-Speed Money Line The High-Speed Money Line By KEN BELSON The New York Times March 6, 2006 Are consumers going to start having to spend a lot more to surf the Web? Phone and cable companies have stoked those fears recently by floating plans that would have Amazon, Yahoo and other Web sites paying new fees to ensure that their content will be delivered to customers faster. This possibility has raised the prospect that consumers may end up having to pay twice for access to the Internet - once to the phone or cable company that sells them a dial-up or broadband line, and again to Internet companies that pass along new charges for fast access to content from their sites. Late last year, the Bells proposed to share the burden of upgrading their networks - particularly as big video files, which take up a lot of bandwidth on the networks, become more common - with the companies sending out that data. The plan quickly drew fire from consumer groups, technology companies and lawmakers eager to preserve open access to the Internet and fearful that the Bell companies have too much power. Those worries were highlighted yesterday when AT&T announced plans to buy BellSouth for $67 billion, a merger that would create a telecommunications giant with $130 billion in sales and 70 million local phone customers in 22 states. If a plan like the one the Bells are proposing were to come into effect, consumer prices might not increase immediately, consumer advocates, industry analysts and telecommunications executives say. But one way or another, consumers are likely to shell out more in the future for Web content. The reason, they say, is simple. As Internet traffic booms and competition intensifies, the phone and cable companies are spending billions of dollars to expand their networks - and they want someone to help them foot the bill. ...http://www.nytimes.com/2006/03/06/technology/06broadband.html? ex=1299301200&en=8d3878a2b1fef9be&ei=5088
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- worth reading the economic arguments djf The High-Speed Money Line David Farber (Mar 06)