said by axus:
Why do you think it would cost so much to provide a gigabit connection? You can rent a server with Gigabit speeds for like $20/mo, the hardware cost to Google is probably on the level of the server price. Maintaining a fiber network is cheaper than a copper one, right?
I think Time Warner is actually right, high demand is not there for Gigabit. People want cheap. But, there is a free 5Mbps connection. How many people are paying $70/mo instead of free? Most people don't want 5Mbps, no matter how cheap it is. Google proved it. They want something better, why not make it Gigabit. What is Time Warner giving for $70?
The reason being is I'm not so much in the sticks, but out here we have DSL or Cable, with some blend of one or the other only being available. Go a half a mile North and you'll find homes that can't get anything but spotty LTE, 3G, or Satellite (or Point to Point Wi-Fi if those providers are still around in this area). Time Warner supplies the Fiber going to all of the schools in this area and to many other large organizations out here, and they have Gigabit connections but I do know they pay a fortune for them, but work well when their IT Departments aren't breaking things with overly restrictive security policies on their Firewalls.
The cost of getting the fiber isn't accounting for everything, but Time Warner would have to get the needed equipment to me, bury some fiber for some time, run some aerial fiber, and get me a connection back to their office. From there, the bandwidth has to be paid for at least to their interconnection. If they're going to give me a dedicated line so to speak but mix in traffic back at the office, that's basically taking you to the price of an enterprise circuit.
I do pay $450 a month for a rented, custom order dedicated server out in Chicago with a Gigabit connection that is unmetered, which also includes a private 1Gbps circuit which is also unmetered if I get another server with the provider. Their main providers for bandwidth is AboveNet and PNAP. But yes Datacenters are an unfair comparison.