BGC Home People and technology powering markets worldwide

Colin Gillis Comments: Internet Majors Silent on Google-Verizon Plan - SmartMoney

Google Inc.'s (GOOG) Internet industry peers have largely met the company's joint policy proposal with Verizon Communications Inc. (VZ) on so-called network neutrality with a resounding silence, even as their own businesses stand to be affected should the plan gain influence among regulators.

Representatives from Microsoft Corp. (MSFT)--which has invested heavily in its relatively young Internet business--Yahoo Inc. (YHOO) and AOL Inc. (AOL) all declined to comment on the proposal published Monday by Google and Verizon.

That proposal has stirred a wave of criticism from network neutrality proponents, who argue that network operators should be required to treat all Internet services and traffic equally. Operators have long countered that they should be able to manage their networks in such a way that maintains a high level of service, even if that means hindering some bandwidth-heavy applications.

Jonathan Zittrain, a Harvard Law School professor and co-director at the Berkman Center for Internet & Society, said it makes sense for other Internet firms to stay quiet at this point, rather than publicly voice a position on Google's proposal with Verizon. "Why stick their necks out?" Zittrain asked. "They're just analyzing this like everyone else, and a [public] reaction could mean signing off on it."

Another possible reason for the silence, according to BGC Partners analyst Colin Gillis, is that Google's peers tend to curry influence in a more private manner.

"It's very Google-y of Google to do what they did," Gillis said, "Which is put it out on the Internet, and be open and honest."

Only closely held Facebook Inc. has publicly asserted a stance on network neutrality that appears to differ in some ways from the Google and Verizon proposal. In a statement, Facebook spokesman Andrew Noyes said the company "continues to support principles of net neutrality for both landline and wireless networks.

© 2012. All Rights Reserved | Business Continuity (USA) | Copyright, Legal and Privacy Statement | Disclaimers and Legal Information