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Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
kudos:23
reply to jmck

Re: CNOC speed matching decision due next week

Google is on the record as saying it's not being sold at a loss.
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Developer: Tomato/MLPPP, Linux/MLPPP, etc »fixppp.org



TypeS

join:2012-12-17
London, ON
kudos:1
Reviews:
·TekSavvy Cable

Unless they reveal all the costs associated with rolling out fiber on poles, running the into homes, installing in home, building their edge ip network, etc., it is simply just their word saying its not being sold at a loss.

And like other companies, they just reveal total profits for the company in financial reports, so those don't indicate much. Google's primary business is mining data, selling that data to advertisers and selling space to advertisers.

Look no further then Google's Android OS, they developed it and then just give it away to OEMs.

Comparing Google's fibre project in Kansas city to convential ISPs is not really is like comparing apples to oranges. I predict the Google's fibre rolling out to the masses to fizzle like Verizon's FIOS did when it first arrived in the States many, many years ago.
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jmck
formerly 'shaded'

join:2010-10-02
Ottawa, ON
Reviews:
·TekSavvy DSL
·Start Communicat..
reply to Guspaz

said by Guspaz:

Google is on the record as saying it's not being sold at a loss.

again it's benefitting them to say it's not being sold at a loss. assuming it is then it's likely being sold at an even cost which isn't proving anything.

the big cost from fiber to the home is the installation/last mile infrastructure (not the actual bandwidth) and the install fee cannot cover that. it could be that city of KC or some other org is funding it and Google isn't counting that as their 'cost'.

InvalidError

join:2008-02-03
kudos:5

said by jmck:

again it's benefitting them to say it's not being sold at a loss. assuming it is then it's likely being sold at an even cost which isn't proving anything.

At $70/month with no speed guarantees, I think it is pretty safe to conclude that they will eventually be making a fair profit on it. Similar service in Hong Kong costs as little as $35/month and in Japan you can have it for ~$50/month in some areas.

As far as KC "funding" Google Fiber, the only conditions Google had were free access to easements and the city generally staying out of Google's way. Local incumbents did try to have GF shut down by saying free easement was an unfair advantage.