Google Invests $500 Million In Nationwide Broadband

A post on the Official Google Blog yesterday explains Google's investment into a consortium which includes contributions from other heavyweights like Comcast, Intel Capital, Time Warner Cable, Bright House Networks and Trilogy Equity Partners for a total investment of $3.2 billion. The group will build on "Clearwires' existing consumer WiMAX business with Sprint's broadband infrastructure and 2.5 GHz spectrum to create a new nationwide wireless broadband network." Larry Alder, Product Manager at Google writes "In particular, the network will: (1) expand advanced high speed wireless Internet access in the U.S., (2) allow consumers to utilize any lawful applications, content and devices without blocking, degrading or impairing Internet traffic and (3) engage in reasonable and competitively-neutral network management." Of course Google intends to support the initiative with technology as well as money and it is clear that the network will be a catalyst for android powered devices.

ISP Plans Trial of Pay-Per-Use High Speed Internet

Time Warner Cable Inc. announced yesterday that they were planning a trial to bill their High Speed Internet subscribers based on their amount of usage rather than the typical flat monthly fee. According to a Globe and Mail article, 5% of Time Warner's subscribers account for over 50% of network bandwidth usage and the pay-per-use model should only affect those users. It will be interesting to see how this unfolds; perhaps I'm over simplifying this but wouldn't the other 95% of the current subscribers expect to see their rates stay the same or decrease? I wonder how many Time Warner Cable subscribers will start jumping ship? It seems to me that whenever a company changes their revenue model it does not bode well for the consumer... their attempt at curbing the appetite of the 5% that are heavy users may come at the expense of their average subscriber. You can be sure that if they get away with this, others will be quick to follow.