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jmck
formerly 'shaded'

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

Re: CNOC speed matching decision due next week

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.