Report: Google Fiber to Cut Staff After User Totals Disappoint → Politics is part of the problem

Even if Google was technically accurate on pricing and expectations, they run afoul of politics. Seattle was to be an early Google Fiber city and the city government blocked them. A change of mayors and city council torpedoed them. Google could have responded by doing the build-out on the area outside the city limit, Bellevue, Redmond, Woodinville, Factoria, Bothell, etc. would have been more receptive. But suburbs aren't as rich a play as in the city proper where possible subscribers are more densely packed. The answer sadly is more politics. Give cities a federal mandate and encourage reasonable price structures through utility regulation. But please put a sunset clause on these! And accommodate competition by mandate.

Personally I'd like to see cities install the fiber (and love the jurisdictions who are subsidizing putting utility infrastructure underground, some as high as $2000 a household!!!) then where municipal fiber exists, mandate the fiber interconnects can be leased by other providers at cost (amortized plus maintenance, then they make money on local utility taxes for the fiber costs not the internet carriage). That lets competition start up more easily; drive a fiber to the municipal access point, and provide access through the jointly owned edge routers. Once it is firmly in place for a decade or so look at transitioning to a syndicated ownership model that for antitrust allows individual syndicate members to set the cost for their subscribers.

Like the Interstate Highway system or the initial travels in space, some things take a nation to build. The highways are a defense issue, so will always be subsidized federally, but as we see with space travel, it can transition to private enterprise, initially cooperatively with government, but ultimately standing on its own. Near earth for now, the lunar region not to far off, but mars is still a governmental funded region. Fiber to rural areas is like mars. The government subsidy is needed if it can be justified. But inner cities, ripe for private investments in fiber, suburbs ... really near term or now in some areas. You do need the utility outlook though. Utility infrastructure is not expecting an ROI in 1,2 or 3 years, but 15 to 20 years. And when they laid copper phone lines, they laid an excessive number compared to current demand. 2 lines for every house plus 10-20% spares. Fiber needs a similar consideration for spares and power in the cable.