Google Fiber

  • Posted: 27 July 2012 08:44 AM

    AFB seems to be slipping into too much focus on TA and not enough attention to the bigger picture if this really is the first post about Google Fiber. 

    Granted, Google Fiber may turn out to be a half-assed flop like other Google projects, but it is an audacious initiative aimed at the heart of the digital living room that Apple dearly wants to conquer. 

    After years of attention on wireless, this initiative indicates that in order to get the download speeds required for where the puck is heading, we will have to go back to the future of physical cables to homes.  The biggest impediment to that vision has been cost, and the most interesting part of Google Fiber is that Google is greatly cutting the cost of installing fiber into homes.  This is a DISRUPTION worth paying attention to, folks!

    The biggest negative about Google Fiber so far is the failure to get some of the key networks onboard.  The interplay between the content folks and the technology provider folks has always been the sticking point to the digital living room, and it will be interesting to see whether the threat of Google Fiber gets some of the content folks more interested in dealing with Apple now.

         
  • Posted: 27 July 2012 09:18 AM #1

    macorange - 27 July 2012 11:44 AM

    AFB seems to be slipping into too much focus on TA and not enough attention to the bigger picture if this really is the first post about Google Fiber. 

    Granted, Google Fiber may turn out to be a half-assed flop like other Google projects, but it is an audacious initiative aimed at the heart of the digital living room that Apple dearly wants to conquer. 

    After years of attention on wireless, this initiative indicates that in order to get the download speeds required for where the puck is heading, we will have to go back to the future of physical cables to homes.  The biggest impediment to that vision has been cost, and the most interesting part of Google Fiber is that Google is greatly cutting the cost of installing fiber into homes.  This is a DISRUPTION worth paying attention to, folks!

    The biggest negative about Google Fiber so far is the failure to get some of the key networks onboard.  The interplay between the content folks and the technology provider folks has always been the sticking point to the digital living room, and it will be interesting to see whether the threat of Google Fiber gets some of the content folks more interested in dealing with Apple now.

    I have read a lot about Goog fiber and IMHO it isn’t going anywhere long term for the following reasons:
    Internet service to the home much like wireless is on an incremental speed path.  The carriers and smaller ISPs are probably not going to embrace 1 Gig to the home anytime soon as it bypasses so many other speeds they can offer that increase margins with every increment.  They also know if you give a customer 1 gig there really isn’t anywhere to go from there with current offerings over the Internet so they are stuck with a static service that will only go down from an already low price for quite a long time.
    The carriers would have to upgrade all core Infrastructure devices to support 1 Gig to the home if they are not going to hideously oversubscribed the core of their networks.  For instance:  offer 50 people 1 gig to the home, how big have thoses switches in the core got to be to offer anything like that through the core. The current sweet spot for core Ethernet switches is 10Gig BTW.  100 Gig is available but so far not cost effective for the home subscriber target when compared to 10 Gig For these reasons google will not be able to make a profit or be able to partner with anyone.
    Lastly and probably most important, this is not a core competency for Goog.  Search is.  Look at their financial statements and revenue for anything outside of search is less than 5% (I believe it is actually 2).  That’s revenue BTW not profit.  It is very different running a service like Goog Fiber and making a profit.  Their GOOG docs and other offerings in the cloud are natural progressions from their search as a key component to search is that it is always there (I.e. when you go to GOOG the service is available).  Because of this we know they know how to scale a service running on servers in a cloud type architecture but to offer actual connectivity to a home and keep it running is much different.

         
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    Posted: 27 July 2012 10:54 AM #2

    What is Google doing to drive down the cost of fiber infrastructure? Fiber to the home should be thought of like roads or water, not cable tv or phone. We are so far behind. It’s amazing how fast and cheap broadband is outside the US. Fiber needs hundreds of billions of dollars of federal investment and should be public infrastructure. But that’s not likely because of politics. Not without huge public pressure. So congrats to KC. The most interesting thing about Google Fiber in KC is not the research which can be done better outside the US. It’s the political example.

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