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Vodafone attacks Google at Mobile World Congress
Paul Nesbitt
Vodafone CEO, Vittorio Colao warned attendees at the Mobile World Congress in Barcelona that Google's dominance in online advertising posed a serious threat to phone networks.
Colao said that Google's dominance 'from a public policy is something that should be looked at,' inferring that EC regulators take action against the search giant, although he denied that he wanted such direct intervention.
Colao's remarks follow those former Vodafone CEO, Arun Sarin, who three years ago warned that search companies would 'eat the mobil industry's lunch' unless they took action.
Colao's remarks reflect the concerns of networks, who are spending money to help their infrastructure cope with ever growing volumes of data, while companies like Google and Apple make increasing amounts of money with mobile advertising, and sales of apps.
'The fact that 80% of advertising online goes through one funnel, there's nothing wrong with that. We use Google, we like Google. It is more of a structural point. You cannot develop a healthy data environment if you do not have competition at all levels. It is more of a point about the future debate about net neutrality than anything specific,' he said.
The issue of net neutrality, has already been a contentious topic between broadband ISPs and companies likle Google with the former demanding that they be allowed to charge different amounts according to volume of data and even to offer higher priority to customers willing to pay. Google and proponents of new neutrality want governments to enshrine in law the principle that all all web traffic is treated equally.
Vodafone is already testing a system in Spain, where it charges business customers extra a higher rate of guaranteed service in data transfer.
'I used to work in the media business and if I wanted to get the newspaper in the kiosks in Sicily at 5am I had to pay more than if I wanted to be in the kiosks at 7am with all the other newspapers,' said Colao.
Vodafone CEO, Vittorio Colao
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