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Read Spolsky's Strategy Letter V[1].

All else being equal, demand for a product increases when the prices of its complements decrease.

Internet access complements all of Google's other products. It is in their interest to commoditize it even further and make it cheaper. If I were Verizon and Comcast I'd be worried.

1: http://www.joelonsoftware.com/articles/StrategyLetterV.html



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