In a surprise move yesterday, Google announced via its blog that it intends to enter the internet service provider space, promising to develop experimental “ultra high-speed broadband networks in a small number of trial locations” across the nation.
The move quickly grabbed the attention of some observers of the net neutrality debate, in view of Google’s longstanding backing of the controversial policy. Internet service providers are among the most high-profile opponents of net neutrality, a position that has seen them along with the Communications Workers of America union, many minority and civil rights groups and others pitted on the opposite side of the debate from Google, President Obama, Federal Communications Commission (FCC) Chairman Julius Genachowski and far-left groups like Free Press. One telecoms policy expert quipped with tongue-in-cheek that if Google was “serious” about the move, those tracking the net neutrality debate could fairly assume that a shift in the company’s views regarding net neutrality would also be forthcoming. “Last I checked, Google was a big company that likes making money. If net neutrality were instituted, internet service provision–including by Google– could end up looking like a loss-making enterprise,” the expert told Capitol Confidential.
However, the move was more widely seen as a cynical ploy by Google to argue that net neutrality would not harm ISPs, constrain broadband deployment, or hamper quality of internet service. A Reuters article on the subject yesterday explicitly stated that “In building the test network, Google wants to demonstrate a carrier could easily manage complex applications that use a lot of bandwidth without sacrificing performance.” Reuters also cited telecommunications consultant Daniel Hays saying of the initiative that “In a big way, this is about Google wanting to make a case for net neutrality.”
One tech policy expert with whom Capitol Confidential spoke meanwhile opined that Google would almost certainly roll out its broadband in an area like Silicon Valley for the benefit of a limited number of users, rather than rolling it out across, say, Appalachia (which would present much more extensive challenges), for the potential benefit of millions. Indeed, Google conceded yesterday that its goal was simply to develop a trial service targeted at something between 50,000 and 500,000 users–an admission that resulted in the voicing of further, immediate skepticism. According to Reuters, “Analysts said they did not think Google would end up competing directly with carriers as it would cost the Internet company hundreds of billions of dollars to build a nationwide broadband network from scratch.” One such analyst, Todd Rethemeier, said that he was “skeptical” the economics would work to allow Google to deploy its network widely.
Genachowski, the prime mover of proposed net neutrality rules favored by Google, for his part hailed the move as a “significant trial.” However, some telecoms policy experts point out that Google has already attempted one “significant trial,” and fell flat: In 2006, Google invested in a experimental (and largely unsuccessful) WiFi network in its hometown of Mountain View, California, but failed to enter the space in any meaningful sense. Many suspect Google’s latest scheme, which was announced to much fanfare among liberal net neutrality advocates, will fizzle with similar uninspiring results. NetCompetition.org Chairman Scott Cleland characterized Google’s move as “P.R. stunt.” “With one hand Google is urging regulations that stifle broadband development, and with the other hand, they are saying that telecom companies should spend hundreds of billions” to further extend broadband.
However, Google could be facing a backlash against its announcement on other fronts, too. The company notoriously monetized its popular search engine by analyzing users’ search data and populating related advertising. A likely result of this latest scheme is that Google could have unfettered access to customers’ entire clickstream data.
Critics fear subscribers’ entire internet history could be collected and analyzed to the profit of Google. A Google spokesperson however maintains that the company doesn’t plan to use such data for ad-serving purposes–yet. Google has also indicated that to the extent that situation changes, Google would only use such data for advertising purposes “with the subscriber’s explicit opt-in consent.” That, however, is unlikely to allay the concerns of privacy advocates, on either the left or the right, meaning one immediate result of Google’s “experiment” will likely be a lot of incoming fire over the next few months.