Bad Things Happening on The 'Two-Tiered Internet' Forefront
Props to Om Malik, once again, who seems magically enabled to get the down-low on such things:
Marketwatch reports that BellSouth is in talks with some Internet content companies and will levy charges to deliver premium tier services. Bill Smith, chief technology officer at BellSouth told the online publication that, “Higher usage for broadband services drives more costs that we have to recover.”More here.
Smith points out that Apple maybe asked to pay a nickel or a dime to deliver the song. Yahoo will have to do the same for its reality TV streams. I wonder what is the ramification of this? Will it mean increased price of songs on the iTunes store, hence slower sales of iPod, and hence the slowdown of that ecosystem. As I said earlier, if there is no money out of consumer pocket, fine. Silicon Valley is still going to pay the price! Not that Washington is paying any attention!
posted by Fergie @ 1/16/2006 09:46:00 PM
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