|reply to DaSneaky1D |
Re: Google fired a shot across the bow
I dont really agree with those points.
1) They built a fiber network. They are simply letting users use most of the capacity of the network. Sure they can artificially limit users like most ISPs do, but what would be the point in that when customers are paying you more than enough to cover all the costs to operate the network and have a great profit.
Using 5 mbps or using 100 mbps on their fiber network costs exactly the same per user as 99% of the costs are in the physical connection and hardware.
Now they do have their limited 5 mbps plan for $300 which only covers paying in installer to run fiber from the street to the persons house and hardware.
But if you built out the network to that street then any money is better than nothing and at least getting the 5 mbps hooked up is free advertisement to get more services to that house.
I dont see this as a mind-shift. It is simply building a fiber network that can be constantly upgraded for more speed with new equipment instead of having to change any wiring and offering a cheap teaser plan to get their foot in the door so any extra profitable services can be turned on instantly.
Google is simply trying to be a profitable successful ISP, not a monopoly that tries to rip off customers just because they can.
Remember the incumbents have been around for decades, their entire networks are already fully paid for so they can easily undercut google if they wanted to, the problem is they dont want to.