Google Uses 21 Times More Bandwidth than it Pays For

Here’s another email I got last week during the Blanidn Broadband conference… (Gotta love a snowy Sunday for catching up!)

A recent report says that Google is by far the largest user of Internet bandwidth, Google’s share of bandwidth usage is rising rapidly, and that Google’s bandwidth use is orders of magnitude greater than its payment for its cost.

Specifically, the study estimated Google used 16.5% of all U.S. consumer Internet traffic in 2008; that share is estimated to grow to 25% in 2009 and 37% in 2010. Then the study estimated Google’s payment to fund just the U.S. consumer broadband Internet segment to be approximately $344 million in 2008 or 0.8% of U.S. consumer’s flat-rate monthly Internet access costs of $44.0 billion. Thus Google’s 16.5% share of all 2008 U.S. consumer bandwidth usage, is ~21 times greater than Google’s 0.8% share of U.S. consumer bandwidth costs – or an implicit ~$6.9 billion subsidy of Google by U.S. consumers.

The go on to talk about how Google hogs the traffic – mostly through search bots. Part of me says – well that’s like Orlando blaming Disneyworld for the road traffic. Part of me realizes that Disneyworld probably pays some hefty local taxes, whereas Google doesn’t.

The researchers obviously had some of this in mind as well. Here’s a quick blurb from the report:

This research study of Google’s usage vs. cost is relevant to the current broadband policy debate, because
Google is the driving force behind InternetForEveryone.org which is pushing “to adopt a national plan to bring open, high-speed Internet connections into every home, at a price all of us can afford.” Internet connections could be more affordable for everyone, if Google paid its fair share of the Internet’s cost. It is ironic that Google, the largest user of Internet capacity pays the least relatively to fund the Internet’s cost; it is even more ironic that the company poised to profit more than any other from more broadband deployment, expects the American taxpayer to pick up its skyrocketing bandwidth tab.

It’s an interesting counterpoint to the Net Neutrality folks. I think that the researchers might have benefited from a little neutrality in their tone – but it’s a good read.

Connected Illinois?

I got an email last week with an interesting opportunity for someone. It seems as if they might have an organization in mind – but the RPF is open. It’s great to see more States placing a prominence on broadband. It’s especially nice to see that the President-Elect’s state has been thinking about it.

Here’s the scoop:

The Illinois Department of Commerce & Economic Opportunity (DCEO) is seeking to fund a nonprofit organization with a record of implementing successful broadband deployment and demand creation initiatives. Download the $4 million Request for Proposals (RFP) required by the 2007 High Speed Internet Services and Information Technology Act.

The proposal deadline is January 12, 2009 at 1:00PM. Here’s a summary of the opportunity:

3 GOALS of the RFP include:

*Ensuring residents and businesses have access to affordable and reliable high-speed Internet service *Improving technology literacy, increasing computer ownership and high-speed Internet use among residents and businesses *Establishing an environment for high-speed Internet access and technology investment

5 RESPONSIBILITIES of the nonprofit will include:

— Creating a geographic statewide inventory of broadband service and other relevant information technology services

— Tracking statewide residential and business adoption of high speed Internet, computers, related information technology and any barriers to adoption

— Building and facilitating a local technology planning team in each county

— Collaborating with technology companies to encourage broadband deployment and use

— Developing a program to increase computer ownership and broadband access for disenfranchised populations