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Verizon Executive Calls for End to Google's 'Free Lunch'

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Verizon Executive Calls for End to Google's 'Free Lunch'
Topic: Business 11:55 pm EST, Feb  7, 2006

Verizon Communications Inc. executive yesterday accused Google Inc. of freeloading for gaining access to people's homes using a network of lines and cables the phone company spent billions of dollars to build.

The comments by John Thorne, a Verizon senior vice president and deputy general counsel, came as lawmakers prepared to debate legislation that could let phone and cable companies charge Internet firms additional fees for using their high-speed lines.

"The network builders are spending a fortune constructing and maintaining the networks that Google intends to ride on with nothing but cheap servers," Thorne told a conference marking the 10th anniversary of the Telecommunications Act of 1996. "It is enjoying a free lunch that should, by any rational account, be the lunch of the facilities providers."

Verizon is spending billions of dollars to construct a fiber-optic network around the country for delivering high-speed Internet and cable TV services. Executives at other telecom companies, such as AT&T Inc. chief executive Edward E. Whitacre Jr., have suggested that Google, Yahoo Inc. and other such Internet services should have to pay fees for preferred access to consumers over such lines.

Verizon Executive Calls for End to Google's 'Free Lunch'



 
 
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