Friday, July 27, 2012

Could Google Overbuild The Cable Operators

Kansas City is a buzz over Google Fiber and cable operators may be concerned that a new rival is in town.  "Google Fiber makes the cable-based ISPs look pathetic. It promises to offer speeds up to 1,000Mbps downstream and upstream, for only $70 a month." Bring audiences in at a faster and cheap rate and win them over.  "For Google, the main business purpose of Fiber is to give people faster Internet access, so they'll spend more time online -- where they're more likely to use a Google product and click a Google-sold ad. But just like Gmail unlocked an enterprise business, Fiber could unlock a whole new business as an ISP and TV provider."

And according to a Multichannel article, Google is also in talks with some large programmers, including Disney, Turner, and Fox.  How Google Fiber  tests in Kansas City could demonstrate the value to Google of rolling out this service across other cities.  Still the infrastructure to support such a rollout and manage the pipeline must be enormous, but if anyone has the deep pockets, it is Google.

1 comment:

  1. The interesting part is that for $300 (set-up fee which you can spread out in a payment plan), you'll get free broadband for at least 7 years at lower DSL speeds, so if all you want is enough speed to surf the net, Skype with friends, and use Google Voice (or magic jack) to make free domestic calls, it's super cheap.

    Expect Verizon, Comcast, Frontier, and AT&T to spend a LOT of money trying to fight to keep Google out of many markets with lawsuits and regulatory challenges.