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atuarre
Here come the drums
Premium Member
join:2004-02-14
EC/SETX SWLA

1 recommendation

atuarre to fifty nine

Premium Member

to fifty nine

Re: Wonder how much all of this costs

Nothing is free. I do not care if Google "claims" it is free. As others have pointed out, this is a PR stunt, just like the wireless spectrum nonsense, and Google selling its own device, which still was under carrier control.

And companies do have an obligation to their shareholders. You don't have to believe that, but it is true.

Google will milk this for the free PR, and then the real costs will end up hitting the end users, just you watch.
sparc
join:2006-05-06

sparc

Member

said by atuarre:

Google will milk this for the free PR, and then the real costs will end up hitting the end users, just you watch.

so what. Let's say they charge $20 a month for their currently free tier after 7 years. Should users really end up being pissed?

The reality is that these users can go to the other two incumbent providers if they're ever unhappy with the service. The risk is all on Google and with Google shareholders for the buildout. KC broadband users win no matter how this plays out.

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK
Netgear WNDR3700v2
Zoom 5341J

KrK

Premium Member

The result will be the competition will have to price with Google in mind.

In fact judging by past experience they will upgrade and sell dirt cheap in an attempt to keep Google's profits razor thin or even lose money, so that they can "convince" Google it's not profitable long term and to give it up.... should this happen however, then prices will skyrocket quickly.

A Duopoly does not competition make.

coldmoon
Premium Member
join:2002-02-04
Fulton, NY

coldmoon

Premium Member

said by KrK:

The result will be the competition will have to price with Google in mind.

In fact judging by past experience they will upgrade and sell dirt cheap in an attempt to keep Google's profits razor thin or even lose money, so that they can "convince" Google it's not profitable long term and to give it up.... should this happen however, then prices will skyrocket quickly.

A Duopoly does not competition make.

I think Google has the edge in a price war and has deep enough pockets to outlast the incumbents which is probably at the core of their hysterical fear and hatred of Google...

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK
Netgear WNDR3700v2
Zoom 5341J

KrK

Premium Member

The problem, as usual these days, is Wall Street. Google has been a darling of WallStreet and has gone up and up.

However the day could come where they fail to meet unrealistic expectations... "What, profits are only up 6% when we expected 18%"!!! and then the stock could tank, wiping out billions in Google's net value.

In such a scenario, the Google CEO and Board would be under intense pressure to "Return to Glory Gains" and any "Projects" that aren't making ridiculous returns at the time could be on the chopping block.

That's my concern for this project and the reason the other incumbents will want dump in this market and keep profits low for all of them in the KC market for who knows how long. They are hoping Google will dump the project at the behest of WallStreet. It's a real threat.

Guspaz
Guspaz
MVM
join:2001-11-05
Montreal, QC

Guspaz to KrK

MVM

to KrK
said by KrK:

The result will be the competition will have to price with Google in mind.

In fact judging by past experience they will upgrade and sell dirt cheap in an attempt to keep Google's profits razor thin or even lose money, so that they can "convince" Google it's not profitable long term and to give it up.... should this happen however, then prices will skyrocket quickly.

A Duopoly does not competition make.

I suspect that one of the multiple reasons for Google's free option is that it's difficult to undercut free. What might hurt Google is that they have no tier between $0 for 5 meg and $70 for 1000 meg. There's room for something like $30 for 50 meg, for example...

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK

KrK

Premium Member

Yeah, I suspect they are trying to actually make a point. What it is I'm not exactly sure.
tdar
join:2004-04-05
Alpharetta, GA

tdar

Member

said by KrK:

Yeah, I suspect they are trying to actually make a point. What it is I'm not exactly sure.

Watch the first 15 mins of the video they tell you what the point is.
Google makes money off people using the internet. They make money off new innovations on the net as they lead to more use. Innovation as they see it is being blocked because the access part of the net has not kept up with the storage and compute part.

Google wants to change this. They will make money at it and then be in the position to call all the incumbents liars when they say they cant do it. Notice they stated over and over there are no caps on Google Fiber. Think Google wants there to be caps anywhere?

Here's a thought to ponder. What if You Tube could replace your cable or sat provider?