BellSouth to Internet: Show Me The Money

Update: Jeff Pulver has advice for Eric Schmidt, Google CEO. Turn Off Bell South and writes, “Welcome to the game of Internet Chicken and the race to mutually assured destruction. Who will flinch first before it is too late?” Pulver is even more disappointed with Mark Cuban’s stance on network neutrality.

Marketwatch reports that BellSouth is in talks with some Internet content companies and will levy charges to deliver premium tier services. Bill Smith, chief technology officer at BellSouth told the online publication that, “Higher usage for broadband services drives more costs that we have to recover.”

Smith points out that Apple maybe asked to pay a nickel or a dime to deliver the song. Yahoo will have to do the same for its reality TV streams. I wonder what is the ramification of this? Will it mean increased price of songs on the iTunes store, hence slower sales of iPod, and hence the slowdown of that ecosystem. As I said earlier, if there is no money out of consumer pocket, fine. Silicon Valley is still going to pay the price! Not that Washington is paying any attention!

While we are on the topic of the much ballyhooed QoS, can the incumbents who propose to charge for better and faster delivery of content deliver an optimum and consistent 3 Mbps every minute of the day to the consumer who coughs up hard earned $40 a month? After all that consumer, not Yahoo or Apple is their first and primary customer.