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Low Income Residents Want to Share Google Fiber
But Google Turns Down Proposal
by Karl Bode Friday 20-Jul-2012 tags: Fiber · business · wireless · consumers · wireless
Google's 1 Gbps residential fiber build is officially underway in Kansas City, with a big announcement expected next week regarding an official launch date. Rumors have established that Google is also planning to offer those users an IPTV service based on FCC license applications and filings with the Missouri Public Service Commission. Communities are already working hand-in-hand to figure out how to put this unprecedented bandwidth to use. The Kansas City Star explores how some locals are building a Wi-Fi cooperative that will help share some of these 1 Gbps connections with lower -income communities.

Interestingly, when informed of the two community groups that planned to do this -- Google appeared to embrace the initiatives:

"One of the reasons we’re here in Kansas is because the community is passionate about broadband issues,” said Jenna Wandres. “We think it’s great groups like Connecting for Good are thinking about how to get everyone in the community online." Yet she declined to say if Google would object to anyone essentially reselling the search company’s Internet service.

Google's spokesperson declined to say, because a few days later Google objected to users reselling the company's service:

Google has turned down a Kansas City, Kan., neighborhood’s plan to tap into the ultra-fast Internet connections promised by the Internet company and create a kind of Wi-Fi cooperative. Michael Liimatta, co-founder of local nonprofit Connecting for Good, said Google told the groups involved that the idea wasn’t in line with planned licensing agreements for the new product, Google Fiber.

That's well in line with responses from other established ISPs, and it sets a clear tone that this effort isn't about altruism. There's still no word on what Google plans to charge for service. In Stanford, where Google is offering 1 Gbps fiber in conjunction with Sonic.net, the company is offering users free service for one year after users pay $250 for professional installation -- or $50 for an install kit. Granted, Google's interest in these communities isn't to make a killing on broadband (though they obviously would like to profit), it's using those networks as test beds for next-generation ad and tracking technologies while gathering data on real-world subscriber broadband use.

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pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Precedent

If Google were to allow this, then everyone else would want to be able to do it as well. I can't blame Google for rejecting the idea.
--
Romney 2012 - Put an adult in charge.

somms

join:2003-07-28
Salt Lake City, UT

Re: Precedent

said by pnh102:

If Google were to allow this, then everyone else would want to be able to do it as well. I can't blame Google for rejecting the idea.

Looks like this could be a black mark against 'evil' Google's KC Fiber project. Not very good PR tactics...

Hell, even my 'socialist' muni FTTH ISP has a heart and offers free internet service and wifi to non-profits!

AnonFTW

@rr.com

Re: Precedent

said by somms:

said by pnh102:

If Google were to allow this, then everyone else would want to be able to do it as well. I can't blame Google for rejecting the idea.

Looks like this could be a black mark against 'evil' Google's KC Fiber project. Not very good PR tactics...

Hell, even my 'socialist' muni FTTH ISP has a heart and offers free internet service and wifi to non-profits!

Your can write off donations to 503(c) Non-Profits, you can't to poor people.

somms

join:2003-07-28
Salt Lake City, UT

Re: Precedent

said by AnonFTW :

said by somms:

said by pnh102:

If Google were to allow this, then everyone else would want to be able to do it as well. I can't blame Google for rejecting the idea.

Looks like this could be a black mark against 'evil' Google's KC Fiber project. Not very good PR tactics...

Hell, even my 'socialist' muni FTTH ISP has a heart and offers free internet service and wifi to non-profits!

Your can write off donations to 503(c) Non-Profits, you can't to poor people.

Michael Liimatta, co-founder of local nonprofit Connecting for Good, said Google told the groups involved that the idea wasn’t in line with planned licensing agreements for the new product, Google Fiber.

Read more here: »www.kansascity.com/2012/06/28/36···link=cpy

AnonFTW

@rr.com

Re: Precedent

There are many types of Non-Profits. Only a 503(c) can write expenses off.

They don't advertise themselves as a 503(c), but rather as "Connecting for Good is a registered Kansas not-for-profit corporation #4563276".

marigolds
Gainfully employed, finally
Premium,MVM
join:2002-05-13
Saint Louis, MO
kudos:2

Re: Precedent

Any non-profit can write off expenses.

503(c) just defines which a subset of 501(c) corps for which donations to those corporations are deductible. many 501(c) statuses (such as some 501(c)(3) corps) do not require registering with the IRS for the donors to receive deductions. As long as this group has receipts under $5k, there is a good chance they fit under the 501(c)(3) filing exemptions.

Heck, Google can write off the expenses either way as an expense of business. And I suspect that 501(c) status is a hurdle the group could take if it was necessary to reach an agreement with Google.
--
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somms

join:2003-07-28
Salt Lake City, UT

Re: Precedent

said by marigolds:

Any non-profit can write off expenses.

503(c) just defines which a subset of 501(c) corps for which donations to those corporations are deductible. many 501(c) statuses (such as some 501(c)(3) corps) do not require registering with the IRS for the donors to receive deductions. As long as this group has receipts under $5k, there is a good chance they fit under the 501(c)(3) filing exemptions.

Heck, Google can write off the expenses either way as an expense of business. And I suspect that 501(c) status is a hurdle the group could take if it was necessary to reach an agreement with Google.

Thank you for clarifying this and including accurate info which seems to be missing from the partisan tone of these forums lately!

Google has just missed the boat on getting the positive PR this time...

AnonFTW

@rr.com
said by pnh102:

If Google were to allow this, then everyone else would want to be able to do it as well. I can't blame Google for rejecting the idea.

I agree. You'd wind up with a few paying customers who are maxing out their 1Gbps line. And for Google, no way to siphon data for advertising purposes.

What I find fascinating, is that Google believes that building a 1Gbps fiber network is inexpensive enough to make up for in advertising.

No wonder the incumbents are shitting their pants. Google is poised to pull back their curtain so to speak and expose the last mile lie.

The next 12-24 months are going to be interesting.
Cobra11M

join:2010-12-23

Re: Precedent

kinda makes you wonder if google aint got somethin up their sleeve.. their advertising is where they make the most money I kinda wonder if the content people are gonna be looking at on googles servers would be posied with advertising more often the reg.., either way I would love to see advertising if that meant Fiber where im at

skuv

@rr.com
No, it's not that cheap to build out fiber. It's expensive.

They aren't trying to recoup their costs on this and make a profit. There is a reason they chose to go small scale and not be a nationwide ISP. Because it is very expensive to overbuild.

If it were cheap, the incumbents would already be gone, because you'd have 5 or 6 fiber connections to your house, nationwide.
BiggA

join:2005-11-23
EARTH
It should have been OK if it were business class. I can kind of understand how they don't want to erode their potential subscriber base though.

If it's only a residential service, then there's no resale, period.

SysOp

join:2001-04-18
Douglasville, GA

No soup for you

A walled garden approach would work to prevent open wifi networks from popping up.
tom thomas

join:2010-11-04

why not lots of shared connections

it actually surprises me a bit that it has not become the norm for building to have shared connections for tenents
zed260
Premium
join:2011-11-11
Cleveland, TN
Reviews:
·Charter

Re: why not lots of shared connections

said by tom thomas:

it actually surprises me a bit that it has not become the norm for building to have shared connections for tenents

well most companys have caps to stop that from resedential side

and on bussnuss side using charter as an example it forbids resale of the service unless you get one of the special fiber hookups which are crazy expensive

elios

join:2005-11-15
Springfield, MO
this is how they do it in Japan
they have 1Gps pipe in the building and the tenets share it over ethernet

i have seen some condos that offer service like this too but they have there own TV service as well

Re: why not lots of shared connections

That's how things are at my building in Chicago. 1Gbps line in the basement, each unit wired with ethernet. TV service is brought in via a DirecTV satelite array on the roof with enough capacity to handle multiple STB's per dwelling. Landline phone service is offered through AT&T as well, but most of us (the smart ones anyway) just use VoIP for that. It's a great setup from multiple angles - we're not at the mercy of any one provider, we pay super cheap rates, and the service is better than anything I've found from FIOS or Xfinity. Needless to say, I'm not moving any time soon.
Wilsdom

join:2009-08-06

Re: why not lots of shared connections

Yeah, but your building is paying more than $100 or whatever Google has in mind

FBGuy
Premium
join:2005-03-19
Evanston, IL

Re: why not lots of shared connections

and when you have a few hundred tenants the price per tenant becomes very low.
Joe12345678

join:2003-07-22
Des Plaines, IL

How much of the 1 Gbps will be for TV?

U-verse uses multicast and there feeds to the home and a 4 active streams max.

Now with fiber Google does not need the 4 active streams max and can maybe go 6+ HD fees at 7-10 Mbps MPEG4.

elios

join:2005-11-15
Springfield, MO

Re: How much of the 1 Gbps will be for TV?

even if they did it that way it would only take up 500Mbps at most
and leave another 500 free thats STILL a crap ton of bandwidth

Gbcue
P.E.
Premium
join:2001-09-30
Santa Rosa, CA
kudos:8
With Google Fiber, they could probably do 50 HD streams @ 10mbps and still not break a sweat. You'd only be using 500 mbps out of 1000 mbps.
Cobra11M

join:2010-12-23

Re: How much of the 1 Gbps will be for TV?

said by Gbcue:

With Google Fiber, they could probably do 50 HD streams @ 10mbps and still not break a sweat. You'd only be using 500 mbps out of 1000 mbps.

possibly a bit more than that, It def makes cable look like crap...

skuv

@rr.com

Re: How much of the 1 Gbps will be for TV?

How does that make cable look like crap?

Using QAMs, a cable plant can send over 6gigabits/sec of video to your house.
ShowMeISP

join:2001-03-15
Kansas City, MO

Re: How much of the 1 Gbps will be for TV?

Technically, yeah, but...

To get it, you all but have to use their equipment, and that means shelling out big bucks for every single stream you want to receive.

If its an IP solution, there's no reason a single PC (or proprietary box) couldn't grab as many streams as it wants (think unlimited channel DVR).

If its a true fiber/IP solution, then the individual streams aren't modulated and require multiple tuners to demodulate back to the baseline digital video.

This is where the big advantage for IP-video comes in.

tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
kudos:3
And an individual residential account would NEED 50HD streams at once for....????

Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
kudos:20

It's not evil for a business to not be a charity

Google is a business, not a charity. They expect to make a return on investment on stuff like this, especially if they're using Google Fibre as a proof to show incumbent ISPs that they can deliver this sort of service and still be profitable.

Community sharing group run counter to that. As cool an idea as they are, any kind of mass broadband deployment requires a certain percentage of passed customers to actually sign up for the service for it to be profitable. If a community sharing group substantially reduces the subscription density, it could take what is probably already going to be a relatively low-margin service and make it completely unprofitable. As such, it's perfectly reasonable (and not at all "evil") for Google to take this position.

This is one of the reasons why business services typically cost more than residential services. A good compromise might be for Google to offer to sell the residents who want to do this a business-class service, if they decide to offer such a thing. This could go a long way to offsetting the lost revenue, and could potentially benefit both parties: for example, if a business service cost five times more, but could be shared with ten people, then there is still a substantial cost savings involved.
--
Developer: Tomato/MLPPP, Linux/MLPPP, etc »fixppp.org

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Re: It's not evil for a business to not be a charity

I know this is off topic, but when I read your post, all I could hear was Shredder's voice.

Well played.
--
Romney 2012 - Put an adult in charge.
davidhoffman
Premium
join:2009-11-19
Warner Robins, GA
kudos:1
Reviews:
·Millenicom
·AT&T Southeast
·Verizon Wireless..

WiFi Sharing Cooperatives for Google Gigabit in KS

First, this "news" is a month old. Second, Google stated why it was doing the project during the application period. To create a large web application test environment utilizing very high speed symmetrical FTTH, FTTB, and FTTC serving a large socioeconomically diverse population. They are not going to get the test environment they seek from households connected with a shared community WiFi signal. Google has not even announced pricing, so predictions of unaffordability are premature in my view. What if they decide to charge only $15/month and no installation fee? What if there is no charge for a new 802.11ac WiFi equipped "modem" with 8 Gigabit LAN ports and 4 USB 3.0 ports? And what if they offered, for the first 100,000 households that sign up, a free solid state hard disk drive netbook running Linux Mint? That might be a better deal for low income households than providing low cost connections to a WiFi cooperative.

skuv

@rr.com

Re: WiFi Sharing Cooperatives for Google Gigabit in KS

said by davidhoffman:

And what if they offered, for the first 100,000 households that sign up, a free solid state hard disk drive netbook running Linux Mint? That might be a better deal for low income households than providing low cost connections to a WiFi cooperative.

Why would Google give away laptops that aren't running ChromeOS? And how would an offer like that to the first 100,000 benefit a low income household anyway?
davidhoffman
Premium
join:2009-11-19
Warner Robins, GA
kudos:1
Reviews:
·Millenicom
·AT&T Southeast
·Verizon Wireless..

Re: WiFi Sharing Cooperatives for Google Gigabit in KS

There are 146,453 people in Kansas City, KS according to the 2010 US Census. At an average of 2 people per household, that equals 73, 226 households. If they had 100,00 netbooks to give away, they would more than cover the city's low income families.

As for Google Chrome vs. Linux Mint for an OS choice, I forgot Google had a netbook OS. My mistake. I have never seen a netbook running Google Chrome OS and had assumed the project was paused. I do know that a few variations of Linux are active and in use on netbooks.
ShowMeISP

join:2001-03-15
Kansas City, MO

Re: WiFi Sharing Cooperatives for Google Gigabit in KS

Don't forget, KC, MO, is part of the project too.. Population about 450,000, and the potential is that the whole metro area could have coverage, population 1-2 million depending on how its counted and what you consider metro.
davidhoffman
Premium
join:2009-11-19
Warner Robins, GA
kudos:1
Reviews:
·Millenicom
·AT&T Southeast
·Verizon Wireless..

Re: WiFi Sharing Cooperatives for Google Gigabit in KS

I did not forget KC, MO. I am making the assumption that KC, KS will be the first to have Google Gigabit, as that city was the winner of the competition. But, it could be that both KCs are activated at the same time. I do not think areas outside the legal boundaries of the two KCs are in the first parts of the experiment. I am not familiar with how the electrical distribution is done in that area. If the two KCs electric utilities also supply electricity to the surrounding small cities, then the agreements for pole placement may be able to be extended easily. Where I live, the electric cooperatives, private electric companies, and some municipal public electric utilities serve large geographic areas without regard to city, county, or state boundaries. They could easily agree to pole placements that cover their entire service areas without consulting or getting approval from each political entity. Do the electric utilities in KS and MO have similar boundary crossing freedoms?

skeechan
Ai Otsukaholic
Premium
join:2012-01-26
AA169|170
kudos:2

Gotta spread that bandwidth around...

So much for not being evil...so un-progressive of them especially since they didn't build their business.
davidhoffman
Premium
join:2009-11-19
Warner Robins, GA
kudos:1
Reviews:
·Millenicom
·AT&T Southeast
·Verizon Wireless..

Re: Gotta spread that bandwidth around...

How are they being evil or un-progressive? They have not announced any service pricing. They have not stated if there will be lower cost speed tiers for a lower price than the 1Gbps symmetrical service. They have not stated if there will be a free purely advertising supported option. They have not stated what the customer premises equipment choices will be. They have not published a deployment progress map. How can you judge the future service offers, if there is no detailed information on those future service offers?

I think it is unfair to judge a company's offering of future services, when the details of those future service offers are completely unknown.
me1212

join:2008-11-20
Pleasant Hill, MO

Re: Gotta spread that bandwidth around...

Actually they did say that the 1gb will be $100, and a 100/100 will be $50.

But still thats far far lower than any other isp in the nation. Comcast's 100/15 costs like $300 and their 1gb costs a few thousand(granted its a dedicated line) Heck Tw and att(which service most of the area google will be in) dont even offer 100m connections here. Surewest does offer 100/100 but its $100.

But I agree not at all un-progressive. They are a private company not the government, its not their job to offer stuff to lower income people at a lower price(heck even the local government doesn't really do that around here) If they let people bundle together to buy the connection they would open themselves to the possibility of people reselling the connection($20 for a 20/20 connection, 6 of them and you are turning a profit with still over 800/800 to yourself).

Not to mention lots of people pay more than what the 100/100 would cost for far less as is around here. Google is a privately owned business, not a social program or charity.

camaro92
Question everything
Premium
join:2008-04-05
Westfield, MA
Reviews:
·Comcast

Hopeless

Hell I would be so damn happy to just have fiber running through my town,I will pay anything reasonable for that service in my town.

You can get a T1 line from my local gas/electric (we have a combined bill in my town) which supply's the local university but that's a little excessive lol.

elios

join:2005-11-15
Springfield, MO

Re: Hopeless

T1 is only 1.5Mbps which is nothing any more

CptObvious

@rr.com

Re: Hopeless

I think that is kinda the point.

Simba7
I Void Warranties

join:2003-03-24
Billings, MT
A T1 line? What is this, the 70's?

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