Google finds itself in net neutrality predicament

In Developing Countries, Web Grows Without Profit [New York Times]

Large social media and online video portals are facing a growth dilemma, according to this New York Times article. It's a problem that may have some large supporters of net neutrality shifting course on their own neutrality principles in order to put the bottom line in the black. For sites like Facebook and Google's YouTube, much of their current growth is coming from large numbers of Internet users in developing countries. Because of the tremendous growth and bandwidth usage of users in the developing world, these companies are pouring resources into their site's bandwidth in places where there is a lack of interest by web advertisers in purchasing advertising that targets users.  I guess it's their turn to feel the pinch of investing huge resources for little or no return. 

Video sharing site Veoh recently addressed the developing country issue by blocking users from these countries from its site. The costs of serving up videos to every corner of the globe simply wasn't economical for Veoh. For online video leader YouTube, which is owned by Google, the pinch has caused Google to slow international development plans. Google, which has been a major proponent of net neutrality legislation in the U.S., is considering limiting YouTube bandwidth in countries that are too large a drain on resources, according to this article. If you live in a country that drives the YouTube profit margin, you can expect a first-class experience. But if your country consumes more bandwidth than advertising can pay for, you'll be relegated back to the YouTube version of coach.

It's an interesting predicament that Google finds itself when you compare it to its vociferous support for domestic net neutrality while the company plans network discrimination for its YouTube product internationally.

Comments

[bofkentucky]

How is this any different than telecommunications providers not building out/upgrading in rural and/or less-affluent areas? The capital cost involved with rolling out FTTH, DOCSIS3 and/or UVERSE is done first in markets that can support the investment.