Google Fiber Isn’t Just Expensive for Us, It’s Becoming Expensive for the Company Too

Google Fiber might be super-fast, but it’s not the most economically friendly service available, and it’s becoming even more expensive for Google

Google Fiber might be the internet of your dreams, but plans for expansion have hit a brick wall, according to the latest reports. Sources close to the matter and parent company Alphabet has stated that high costs of the current, land-based Fiber deployment and a shortfall in subscribers have forced the company to take measures into their own hands, and their decisions might not be appreciated by consumers who can actually pay for the service, but Google has to look at its own financial resources as well.

According to the latest report, Alphabet CEO Larry Page told Fiber chief Craig Barratt last month to “halve the size of the Google Fiber team to 500 people.” Its internal target was to reach 5 million subscribers in five years of its start, but by the end of 2014, it counted only 200,000 broadband subscribers, which is a huge setback and doesn’t even come close to the company’s intended milestone. Google has not commented on the matter, but it looks like Google Fiber is not going to be expanded anytime soon.

Google Fiber Isn’t Just Expensive for Us, It’s Becoming Expensive for the Company Too

Google Fiber was announced back in 2010, and offered speeds of one gigabit per second. It was launched in Kansas City in 2012 and the company started marking locations on the map at which Google Fiber was going to deliver impressive internet speeds later on. Demand has been strong, but build-out has been slow, allowing Google’s telecom rivals to race ahead. Google Fiber delayed its rollout plans in two Silicon Valley cities to incorporate wireless alternatives.

In a bid to expand more and make the cost more efficient, Google has been looking into using wireless technology for its future Google Fiber rollouts. Earlier this month, the company filed with FCC for permission to use the 3.5GHz band of spectrum to test the technology in as many as 24 locations over the next 24 months. Let us hope that the company finds solace in this venture in the near future.

SOURCEwsj
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  • CherylJocobs

    The problem with Google Fiber is that the company never seemed to be in it wholly. It seemed as if they were willing to offer a service when they wanted and only at a few locations in the country. That was a doomed plan from the beginning. One simply cannot dangle a carrot while your competitors are beginning to offer more services and options. In the ISP space you must move quickly when building a brand because slow rollout will look as if your company is not equipped to handle the customers you are trying to enroll.

  • I have WebPass (now a division of Google Fiber), delivered by microwave. But the truth is most people don’t care to pay extra for anything above, say, 25 Mbps, because after that the page rendering is usually taking longer than the download.

    I’ll probably stick with WebPass. At the annual rate it’s only $6 more per month for 200/200 than TWC was for 30/5, and I love the fact that it’s delivered as ethernet; no pesky modems. But they’ve had trouble signing up many people in my building. Most people don’t see the value in a synchronous connection and their current cable speeds are good enough.