Why not New York City, Philly, Boston, Pittsburgh, New
Haven, Baltimore, or Hartford? And, for
that matter, why not Chicago, Milwaukee, Cleveland, or Detroit? In these Northeast and Midwest cities, the populations
and population densities are much greater than those chosen to go first by
Google. Add in that, in many of these “mature”
cities, the median income and percentage of the population with at least a
college degree are also higher, we should see Google Fiber trucks in our
neighborhoods soon. But, let’s not hold our collective
breathes. For Google, as it should be, it
comes down to a whole host of supply and demand considerations. There must be a sufficient number of
potential buyers with the willingness and ability to pay the monthly service price,
a price that has to exceed the costs to construct and manage the network on an
on-going basis. And, what factors can
influence those costs? In addition to
raw materials, labor, capital, there are real and man-made barriers to enter
and compete, including many things influenced by the municipality (access to
rights-of-way, fees, and how many competitors there are in each market). I have a feeling it will be a very long time
before we see Google Fiber up North. (Note: In many of these GF cities, the incumbents are Time Warner or Comcast and AT&T. Verizon is not a competitor in any of the markets.)
Google Cities (actual and planned) | Pop (2010) 000 | B.S. degree + | % Home ownership Rate | Median Income $000 | Pop/sq. mile | Land area (sq. miles) |
Kansas City | 459.8 | 31.3 | 56.3 | 45.3 | 1,459.9 | 314.95 |
Austin | 790.4 | 45.6 | 45.0 | 53.9 | 2,653.2 | 297.9 |
Provo | 112.5 | 39.6 | 42.3 | 39.7 | 2,699.3 | 41.67 |
Salt Lake City | 186.4 | 41.2 | 49.5 | 45.9 | 1,678.0 | 111.11 |
San Jose | 945.9 | 37.4 | 58.0 | 81.8 | 5,358.7 | 176.53 |
Portland | 583.8 | 43.8 | 53.4 | 52.7 | 4,375.2 | 133.43 |
Phoenix | 1445 | 26.3 | 55.5 | 47.1 | 2,797.8 | 516.7 |
Nashville | 601.2 | 35.3 | 54.2 | 46.7 | 1,265.4 | 475.13 |
San Antonio | 1327 | 24.6 | 55.7 | 45.7 | 2,879.8 | 460.9 |
Raleigh-Durham | 403.9 | 47.5 | 53.6 | 54.4 | 2,826.3 | 142.9 |
Charlotte | 731.4 | 39.8 | 56.3 | 52.4 | 2,457.1 | 297.68 |
Atlanta | 420 | 46.8 | 45.4 | 46.6 | 3,154.3 | 133.15 |
Average | 667.3 | 38.3 | 52.1 | 51.0 | 2,800.4 | 258.5 |
Source: census.gov
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