Google Inc (GOOG) Fiber Not To Make Money From Peering and Colocation Agreements

Google Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) has designed certain peering and colocation policies for Google Fiber, and a behind the scenes look was offered by it on Wednesday. The company aims at creating a ‘win-win-win’ situation for customers, partners and itself too by allowing Netflix, Inc.(NASDAQ:NFLX) and the content delivery network Akamai to make use of its facilities for placing their own content servers, as revealed through the post by the company.

Google not to make money from peering

Netflix, Inc. (NASDAQ:NFLX) has peering agreements with Comcast and Verizon and it has benefited from it too. There has been a practice in the industry of hooking up the networks by two different providers, which has been longstanding, and is known as Peering.

However, using peering and colocation agreements for money making is not done by the internet company, asserted Google Inc (NASDAQ:GOOGL) (NASDAQ:GOOG). The online activities by subscribers will not be paid any regards by Google Fiber and as per the company’s terms of services, bandwidth will be fairly allocated to the subscribers. This will prevent companies from prioritizing their traffic by getting a fast lane through payment. This, also, means that it won’t be possible for Google Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) to keep playing favorites and keep YouTube running for users while it slows down other non-Google services and Netflix.

A nice initiative

For Netflix, Inc. (NASDAQ:NFLX), Google Fiber has been the best performing provider consistently in the US as being fast is a benefit that it has already. The colocation agreement not only reduces costs for both the parties, but also improves speed as the distance to be travelled by a request reduces drastically, when it has to go to Netflix’s servers from Google’s network.

Without government making net neutrality a mandatory requirement, Google Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) itself has decided that its Fiber network will practice a form of neutrality as there is a debate ongoing on the issue. Fiber has a very small customer reach, but it’s a good initiative by not holding on the hostage of the content for some easy and quick money.