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Google Fiber’s new terms of service show how the...

Google Fiber’s new terms of service show how the company has the ability to price-discriminate between residential and commercial customers, and “kudos” to that, said NetCompetition.org Chairman Scott Cleland in a blog post Friday (http://bit.ly/1gRtGYz). Google Fiber’s terms of service…

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allow “normal consumer broadband usage” with a server that enables such consumer applications as home security, multiplayer gaming and video conferencing, but prohibits commercial use of servers on a consumer contract, he said. These terms make Google Fiber “profitably offering,” so it can continue to be offered, and offered in more places, said Cleland. This price discrimination allows Google Fiber to “reasonably manage the network” and to ensure that those who “most need and value” the broadband will pay more than light users who value it less, said Cleland. Google Fiber knows that most people don’t use more than 15-25 Mbps, but the company’s “grand plan” is to push the nation to gigabit speeds because Google’s “business and data center infrastructure needs it,” said Cleland. Members of Cleland’s group, which has opposed net neutrality rules while Google has supported them, include cable operators and wireless carriers (http://bit.ly/19fesZ9). Google had no comment right away.