Why the Google/Verizon Net Neutrality Proposal Is All About Mobile

On Monday, Google and Verizon jointly released a policy proposal detailing their thoughts on how the internet should be regulated by the Federal Communications Commission (FCC).

As Nilay Patel of Engadget acutely observed, the Google/Verizon policy is “very clearly an articulation of a specific plan that was undoubtedly proposed and rejected” during the FCC’s recent meetings on the issue of “net neutrality.”

Regardless of whether this specific policy were to be implemented, the proposal clearly reveals the mobile platform as the most prized asset of the two companies. They agreed that wired broadband should be subjected to nondiscrimination requirements (with exceptions for “additional online services”), but that wireless networks should be exempt from such requirements. Offering this compromise either explicitly or implicitly indicates that the companies’ greatest stake is with mobile.

The benefits of internet access anywhere, anytime are readily apparent for both consumers—who have a wealth of knowledge and purchasing power at their fingertips—and marketers—who gain a more valuable platform with which to engage potential customers wherever they are.

eMarketer’s internet user projections also reflect the increasing importance of wireless. By 2014, eMarketer expects the number of mobile internet users in the US to reach 142 million, a near tripling of 2008 levels.

The total pool of internet users, which includes mobile and wired access, will increase over the same time period from 203 million to 250 million. By 2013, more than half of all US internet users will be accessing the web through a mobile network, either alone or in addition to wired usage.

Google’s Android mobile platform is skyrocketing in popularity and Verizon operates the largest wireless network in the country. It should come as no surprise that they would so willingly submit to regulation with mobile excluded. As further indication of where the market is headed, Verizon is rumored to begin offering 4G as soon as November 15 in 30 markets, offering speeds between 5 Mbps and 10 Mbps. At the same time, you’ve probably been seeing those Verizon FIOS ads on TV for years, but the service is likely still not available in your area.