All of a sudden, everyone realizes that it is the BACKBONE that matters
panix.com
Verizon CEO: Fiber Network Needed To Unlock Opportunities
By ROGER CHENG
February 9, 2006 11:56 a.m.
Of DOW JONES NEWSWIRES
Seidenberg also commented on the issue that industry observers call "net
neutrality," or the notion that all Internet access should be free. The
phone companies want to charge Internet companies such as Google Inc.
(GOOG) for access to faster lines, but opponents say that could impede
innovation and allow the Internet service providers to pick the winners
and losers.
The problem doesn't lie with the connection between the home and the
network, but in the backbone. Currently, if Google wants to increase the
speed by which it connects with its customers, it buys more facilities.
But that solution won't work as more people with broadband connections
"camp" on its site and clog up traffic, Seidenberg said. Verizon will
ultimately have to upgrade the backbone network, which it believes gives
the company the right to charge those using that network.
"We have a right to extract value for the service we provide," he said.
"We won't block traffic, but we won't fix a problem that hasn't been
defined."
Verizon recently traded at $32.49, down 10 cents, or 0.3%, on volume of
5.2 million shares. Average daily volume is 14.2 million shares.
-By Roger Cheng, Dow Jones Newswires; 201-938-2020;
roger.cheng@dowjones.com |
