Some dismiss Google’s announcement that they plan to enter the business of providing broadband internet service as just more dabbling by a company that has too much money. They will probably regret it.
Taking on the problem of slow internet access that puts the US near the bottom of the world’s developed countries in internet speed could end up making Google a lot more wealthy and powerful than just online advertising ever could.
If Google is able to build and control the data delivery pipeline, then we have a clear historical example of what could happen next. This is what broadcast television was about 70 years ago. The moves that the three major tv networks made in controlling the airwaves gave them decades of exclusive control over the ability to deliver advertising to the entire country with little or no competition.
If or when Google builds and controls a data delivery system-particularly if it is better (read, faster) than what is currently in place, then the value of their advertising delivery capability to ad buyers will go through the roof.
If all you have to do in order to download a movie in minutes rather than hours is watch a couple of ads during the downlaod, then most people will happily watch those ads served up by Google while the download is going on.
If a doctor can stream 3D medical images at almost real time speed, then an ad from a pharmaceutical company being served up at the same time is, at worst, a minor annoyance.
Real time sports in high definition online? I’ll click on the Budweiser ad.
Delivery of internet services by the telephone or cable companies is basically an “add on” that is burdened by infrastructure built for a very different purpose. Their networks are already overloaded and their ability to expand has severe limitations.
When Google builds a network that shows consumers, advertisers and the government what really fast, open broadband networks can do, then they’ll have a choke hold on the ultimate ad delivery system.
Would I sit through a few sales pitches to have my internet speed increase by a factor of 10? Can I have it now?
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