Orange 'forces Google' to pay for mobile traffic

Jan 16, 2013
People are seen in an Orange store on July 19, 2012 in Paris. The head of Orange said the company had been able to impose a deal on Google for generating vast amounts of traffic on its telecoms networks.

The head of French telecoms operator Orange said on Wednesday it had been able to impose a deal on Google to compensate it for the vast amounts of traffic sent across its networks.

Orange CEO Stephane Richard said on France's BFM Business TV that with 230 million clients and areas where Google could not get around its network, it had been able to reach a "balance of forces" with the Internet search giant.

Richard declined to cite the figure Google had paid Orange, but said the situation showed the importance of reaching a critical size in business.

Network operators have been fuming for years that Google, with its search engine and You Tube , generates huge amounts of traffic but does not compensate them for using their networks.

Richard put Google traffic over Orange's at around 50 percent.

"That is to say an important part of traffic is generated by a big transmitter like Google, which is the subject of a discussion concerning a form of compensation for the volume of traffic," he said.

The Orange chief executive said that Internet companies and network operators were interdependent and criticised a recent controversial move by a French competitor, Free.

Free blocked , drawing strident protest from websites reliant on advertising that the move would kill their business model, until the French government ordered it stop the practice.

Orange-France Telecom CEO Stephane Richard seen on November 21, 2012 in Paris. Richard says it has been able to impose a deal on Google to compensate it for the vast amounts of traffic sent across its networks.

Google has also been faced with demands for compensation from content providers such as newspapers, who charge the search giant makes lots of from referencing their material.

France and Germany are considering imposing compensation schemes on Google as the company has refused to reach any deal with .

French President Francois Hollande warned Google on Wednesday that his government would legislate a so-called Google tax if the company doesn't reach a deal with French media companies.

He said "those who make a profit from the information" produced by media companies should participate in their financing.

After and French media failed to reach a deal following a month of talks the French government extended a deadline for a settlement to the end of January.

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packrat
2.3 / 5 (6) Jan 16, 2013
Excuse me but Google doesn't force your customers to use their service. If your customers want to use it , they should be the ones paying for their data use and not the data provider. Same thing with Google giving links to your newspapers when someone does a search. If it wasn't for Google your papers would probably not survive.
PressingTheIssue
2 / 5 (3) Jan 16, 2013
Yes who the Hell do these companies think they are?
kochevnik
2.5 / 5 (2) Jan 16, 2013
France is isolationist and has many priorities ass-backwards. Apparently now that includes network neutrality. Rather than making their own media more appealing to users, they again resort to mercantilism, which went out of style in the 19th century in the developed world
Horus
3.3 / 5 (4) Jan 16, 2013
Google gives links to make money off of advertising. They are flooding networks and walking away with advertising cash without sharing in the cost. Sorry, but that free ride to pad Google's pockets will come to an end.
kochevnik
1.7 / 5 (3) Jan 16, 2013
Google gives links to make money off of advertising. They are flooding networks and walking away with advertising cash without sharing in the cost. Sorry, but that free ride to pad Google's pockets will come to an end.
Google doesn't generate any traffic itself. Users are requesting data from Google's servers. Should viral video uploaders also pay for French downloaders? Some child uploads a video and gets a bill from Orange in Paris? Your business model is stillborn. With your model the Internet would still be a military network

Besides Google is mostly in US and could eliminate their French datacentere quickly, assuming one exists
dav_daddy
1 / 5 (2) Jan 16, 2013
Google should change their policy for these country's and start charging them for every click through that comes through the search engine. Same logic is applicable.
alfie_null
not rated yet Jan 17, 2013
Network operators have been fuming for years that Google, with its search engine and You Tube video service, generates huge amounts of traffic but does not compensate them for using their networks.

Since they are currently being compensated for this traffic by their customers, this means they will now correspondingly charge their customers less? When pigs fly.

I wonder if other search engines are suffering the same treatment?

Regarding You Tube, maybe Google should just decline to serve Orange's network. I imagine this would quickly bring about a change in Orange's attitude.

Assigning a per-unit cost to data communication is misleading and nefarious.
Pkunk_
1 / 5 (2) Jan 17, 2013
It's amazing the bull-shit the Europeans put up with on their mobile operators. First they pay the highest fees in the world , some even pay money for incoming calls on mobile !
And these same providers then charge them out of the nose for data usage fees. These ***tards are already charging the customers data usage fees , now they want to act like the government and "tax" the content providers too. Since they can't compete on content they just act like the Mafia and take their "cut" .
rwinners
1 / 5 (1) Jan 18, 2013
In the end, this is just another fee for usage and it is ultimately paid for by the consumer.