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08/29/2005 Entry: "Hmmmm... GoogleNet"

"An even more compelling reason for Google to build its own network is that it could save the company millions of dollars a month. Here's why: Every time a user performs a search on Google, the data is transmitted over a network owned by an ISP -- say, Comcast (CMCSK) -- which links up with Google's servers via a wholesaler like AboveNet. When AboveNet bridges that gap between Google and Comcast, Google has to pay as much as $60 per megabit per second per month in IP transit fees. As Google adds bandwidth-intensive services, those costs will increase. Big networks owned by the likes of AT&T (T) get around transit fees by striking 'peering' arrangements, in which the networks swap traffic and no money is exchanged. By cutting out middlemen like AboveNet, Google could share traffic directly with ISPs to avoid fees."
Free Wi-Fi? Get Ready for GoogleNet. A trail of hidden clues suggests Google is building its own Internet -- and might be looking to let everyone connect for free, by Om Malik, Business 2.0, September 2005 issue (via Surburban Guerilla)

What an eeeeeevil idea.

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