Is the gatekeeper of the world's information planning to become one of the globe's biggest Internet providers?
For the past year, Google has quietly been shopping for miles and miles of "dark," or unused, fiber-optic cable across the country from wholesalers such as New York's AboveNet. It's also acquiring superfast connections from Cogent Communications and WilTel, among others, between East Coast cities including Atlanta, Miami, and New York.
If Google were 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 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.
News source: CNN Money
News source: Business 2.0 Article
