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The Google/Verizon Walled Garden Plan: No Substantive Impact on Net Neutrality

An Editorial Comment from Two Leading Advisors in the Internet Services Marketplace                              

SAN FRANCISCO – Will the Google/Verizon net neutrality plan implode on a wave of mistrust?  RampRate’s Principal Analyst Alex Veytsel and CEO Tony Greenberg tackle the issue with a new blog posting that explores the history, the potential upside and the ultimate realities of the power struggle to control Internet traffic shaping and prioritization.

“This plan aims to set up a walled garden, which is a known model with two outcomes,” says Veytsel.  “When there is a free and open alternative able-minded users scramble over the wall. When there is no alternative, it’s a monopolistic cash cow. Either way, sustained equilibrium between the two is rarely achieved.”

Veytsel points out that in the hubbub over the Google and Verizon net neutrality discussions, there is no actual deal, just a proposed compromise that no one likes and everyone seems to be confused about, which makes it unlikely that the desired long-term impact will be achieved.

The blog goes on to say the lack of clarity and solid examples is at the heart of the compromise.  Verizon and other ISPs have dreams of replicating the success of an iPhone App Store. Content providers such as Google think of a private fast lane as more akin to AOL’s keyword-based Internet – which proved to be a temporary speed bump rather than a serious challenger. At this early stage, both can be described with the same general language, but actual implementations are likely to surface a host of disagreements.

The blog post examines the upside and downside of the agreement, as well as the driving factors pushing both sides of the net neutrality argument. To read the full blog, go to www.ramprate.com/blog.

About RampRate Sourcing Advisors / thinkGASM

RampRate is an IT-outsourcing advisory and strategic research firm. Its strategic research division, thinkGASM helps Fortune 500 media and high tech firms plan for major product and content initiatives through customer research and mapping of the media value chain. The IT services advisory division helps these and other customers execute on the plan by getting the best possible price, service and contract terms from their outsourcing providers. The foundation of both services is SPY Index™, an extensive repository that maps supplier-client relationships against more than 100,000 data points on over 350 suppliers, in 80 countries and 200 metro regions. For more info, visit www.ramprate.com and www.thinkgasm.com

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