Monday, January 28, 2019

Plans for Google Fiber


With an estimated cost of $1 billion to enter a market with its network, Google Fiber installations stalled at about a dozen metropolitan areas (and surrounding cities).  A re-boot was possible in 2016 when it acquired Webpass, a point-to-point wireless technology, as a means to accelerate deployment and reduce installation costs.  Three years later, though, Google Fiber’s market presence (% coverage), nationwide and in the markets it has operations, is not that impressive.  Moreover, it is up against well-established incumbents like Comcast Xfinity, AT&T, Charter Spectrum, and Grande Communications, who fight to block entry and, if entry occurs, compete vigorously with offers and bundles to entice customers not to switch.  A pivot to wireless will not lessen the competitive pressures.

So, where does Google Fiber go from here?  Without plans for an expansion blitz, is it time for Google to consider looking for a buyer of its network assets?  Maybe.  Just maybe!
City
% Coverage
100
99.9
99.5
98.8
98.6
97.3
96.9
96.0
95.4
94.7
88.5
75.9
67.4
47.4
41.6
35.6
34.6
25.5
24.9
23.7
22.8
19.0
16.7
16.6
15.2
14.9
10.9
10.8
10.2
9.1
8.9
8.6
8.1
7.7
7.7
7.6
7.5
6.9
6.5
6.3
6.1
5.0

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