Google Fiber Sticks to Vague Schedule Company Insists They Aim to Make Money on Investment The Kansas City Star takes a look at Google's chances of making a successful business out of their 1 Gbps broadband service slated for launch in both Kansas Cities (KS and MO) next year. Google, which is willing to pour up to a billion into the project, is "willing to fail" notes the report -- which is why Google may succeed. The timeline for the project remains intentionally vague, though the first homes should be lit next summer. The company continues to insist that the effort won't be a charity case, and that the Google intends to make a profit on the network, which could require an investment up to $1 billion: This is not a charity. Its not a nonprofit. Its not a dot.org initiative, said Kevin Lo, the general manager of Google Access, the name the company has given to the light-speed Internet project. "We expect to make money at it. Its a business we expect to be in." While selling 1 Gbps fiber for an expected $50 a month isn't going to recoup their investment anytime soon, the data collected on congestion -- and a platform to test next-generation ads -- could prove invaluable to the company. ISPs traditionally keep real network data performance hidden, and Google stands to learn a lot from a real-world network (and potential TV delivery platform). Google deciding to become a larger-scale ISP remains unlikely.
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 TransmasterDon't Blame Me I Voted For Bill and Opus join:2001-06-20 Cheyenne, WY | Good for Google This is what is needed a long term view, This is how Japan killed us in the 1960 into the 1980's they took a long term view. 10, 20, even 30 years into the future. Thinking only to the 4th quarter is going to get you no where in the long run. -- I am quite sure now that often, very often, in matters concerning religion and politics a man's reasoning powers are not above the monkey's. - Mark Twain in Eruption | |
|  |  | | Re: Good for Google This will be a beta for a long time, and eventually the goog will get out of this business... -- .:|:. aztec being aztec... | |
|  |  |  Romney2012Defeat Obama 2012-Chg we can believe inPremium join:2002-03-03 USA kudos:4 | Re: Good for Google said by aztecnology:This will be a beta for a long time, and eventually the goog will get out of this business... Google has spent A LOT OF TIME hyping this project and almost none on making it happen. They will milk this for the PR value as long as they can. It could be years before they actually get this rolled out to any significant # of users in KC area. -- The nine most terrifying words in the English language are, I'm from the government and I'm here to help. »www.politico.com/rss/2012-election-blog.xml
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|  |  |  |  | | Re: Good for Google said by Romney2012:said by aztecnology:This will be a beta for a long time, and eventually the goog will get out of this business... Google has spent A LOT OF TIME hyping this project and almost none on making it happen. They will milk this for the PR value as long as they can. It could be years before they actually get this rolled out to any significant # of users in KC area. All it is, and all it ever will be, is a big beta test lab... -- .:|:. aztec being aztec... | |
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 |  tshirtPremium,MVM join:2004-07-11 Snohomish, WA kudos:3 Reviews:
·Comcast
| Yes and no... Even at today's low rates, end users won't like what they end up charging to recoup the billion+ along with 30 years of debt service and profit The japanese made the nessesary investments, but were VERY careful/frugal too, buying no more than absolutely needed. | |
|  |  JohnInSJPremium join:2003-09-22 San Jose, CA Reviews:
·PHONE POWER
·Comcast
| said by Transmaster:This is how Japan killed us in the 1960 into the 1980's they took a long term view. But apparently they forgot that all bubbles burst, and have been in a stagnant economy with no clue how to get out since. Possibly not the best choice of country to hold up as a banner. -- My place : »www.schettino.us | |
|  |  | | Google is not really looking to be a competitor in the ISP infrastructure space because they know it is very expensive. They are looking to generate PR and fire up the masses (easy to do here) vs putting their money where their mouth is.
said by Transmaster:This is what is needed a long term view, This is how Japan killed us in the 1960 into the 1980's they took a long term view. 10, 20, even 30 years into the future. Thinking only to the 4th quarter is going to get you no where in the long run. I'm not sure 1G to the home is going to be a major stimulator to our GDP or reduce our national debt. It's "cool" and will stimulate competition, but it is also extremely expensive to roll out in the US. We don't have the government footing the bill for this and business require a return on investment (unlike the government)
People also tend to forget Japan's population density (10x the US) and geography is very different. Their ability to cost effectively roll FTTH is largely dependent on these factors. Just look at FiOS. -- "Too often we... enjoy the comfort of opinion without the discomfort of thought." - John F. Kennedy | |
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 me1212 join:2008-11-20 Pleasant Hill, MO | Are they going to use ads or usage history to make money? Like sell your usage to advertisers to make money or something like that?
I don't really care, I just hope they expand it, even if only to lees summit or so. Yeah it would be nice if they expanded it to the entire kc metro area, but I dont see that happening, any time soon. Ether way this is gonna be great for kc business and our technology related industries. | |
|  |  | | Re: Are they going to use ads or usage history to make money? It's not just the downlink, it's the uplink where there will be more opportunities as most ISPs don't provide a large uplink. New technologies will likely come out of the huge uplink increase.
I also suspect Google may make more by data mining the connection than from ads and service revenue. If profiting from data mining proves successful, Google may stay in the ISP biz. The privacy groups are going to be busy. | |
|  |  |  me1212 join:2008-11-20 Pleasant Hill, MO | Re: Are they going to use ads or usage history to make money? that huge uplink will be a godsend. Its a good time to be a computer science major in the KC area. Hopefully google will find it profitable enough to be an ISP expand in the future. | |
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 Reviews:
·Optimum Online
·Verizon FiOS
| baited breath.. If google makes a succe$$ of evolving broadband for more extensive use of high-definition video & (large file sized) web pages, Verizon will be waiting with bated breath to see what that model looks like and if there's a profit to be made by ramping up broadband speeds that put other cable & telcos alike to shame. This is still going to take a decade or more to play out (especially with such a limited deployment)... let's hope the catalyst is sooner rather than later.
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|  Reviews:
·justhost
| Hardly see Google projects fail Yeah a few projects here and there "end" and a few others like Sewer Broadband fail miserably (joking aside).
I hope they succeed with flying colors on this one. I would like to see a company prove that broadband investment is a GOOD idea | |
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