MF: New Revelations on Google Fiber Spells More Bad News for AT&T and Verizon

[JMS]

Net Neutrality?   Who needs stinking Net Neutrality!!!

 

Google's business plan reportly has them offering free FIOS subscriptions at 5mbps upload and download...currently Verizon's base package at about 90 / month.   Google figures if consumers have free FIOS they will use Googles many services more and thus maximize Googles other revenue streams associated with data mining and online advertising...   

 

Google has a for fee FIOS subscription which offers Gigabit upload and download speeds at 70$ / month...

 

 

http://www.fool.com/investing/general/2014/04/05/google-new-revelations-on-fiber-spells-more-bad-ne.aspx

 

 

New Revelations on Google Fiber Spells More Bad News for AT&T and Verizon

 

Many have wondered what Google (NASDAQ: GOOG  ) (NASDAQ: GOOGL  ) was thinking when it set out to build Fiber, a high-speed broadband Internet service that's 100 times faster than the average broadband. The estimated cost of this service has been figured at $20 billion-$28 billion over the next 10 years. It will provide direct competition for AT&T(NYSE: T  ) and Verizon (NYSE: VZ  ) , and leaves Google possibly needing to acquire a company with significant fiber mileage like Level 3  (NYSE: LVLT  ) .

However, following news last week, the plan for Fiber has become much clearer and could now mean even more bad news for every company that stands in its way.

Building a network beyond Fiber
Google might be the first company to build a broadband network and ask customers to sign up before it's built. In true Google fashion, the company has also been able to use the utility poles of its peers, like AT&T, which has saved on costs in its first two build-outs. Therefore, in obtaining these unprecedented special privileges, it's no wonder that Google has announced an expansion plan into 34 new cities.

Still, it would take many years for Google to match the size of AT&T's U-Verse, which has nearly 11 million customers and more than $12 billion in annual revenue, with growth of 25%. With Internet alone, Fiber is not a make-or-break project for Google, although AT&T's effort is a major growth driver for that company.

With that said, there have always been a lot of questions regarding Google's plan for Fiber, as the company notoriously has a way of surprising consumers and being one step ahead of the competition. Already, Fiber is transcendent with its speeds, but as some might expect, there are now reports that Google Fiber will be the company's entrance into becoming an all-around wireless provider, including Internet, TV, and maybe even mobile -- something that should be costing AT&T and Verizon executives many sleepless nights.

How could Google achieve such a feat? It could continue to build the network, or in a real case of irony, it could act as a mobile virtual network operator, which basically means Google would use an existing network. However, by bundling the best Internet service the world has ever seen with mobile and TV, it's likely that Google would thrive.

For those who believe the FCC would never allow Google to use another provider's network, just remember the fuss being made with Softbank trying to acquire T-Mobile, and the fact that the FCC's biggest argument centers around there being just four current nationwide telecoms, meaning the FCC would likely welcome Google with open arms.

 

[JMS]

Here is an article which predates the above article by a few days...  It has less details about Google's planned network and more details about their business model.

 

 

http://bgr.com/2014/04/04/google-wireless-service-analysis-verizon-att/

 

 

U.S. wireless carriers finally have something to fear: Google

 

 

Call Google “evil” all you want — I personally love how “evil” Google is — but there is no other company on the planet that can shake things up and disrupt the status quo like Google. Armed with a massive advertising business and an uncanny ability to collect and utilize data in amazing ways, Google has time and time again shown us that it’s not afraid to roll the dice and bet big when it comes to breaking into new categories.

Verizon, AT&T, Sprint and T-Mobile should all be on high alert, then, because Google is once again rumored to be toying with the idea of launching its own wireless service.

Google Fiber is a perfect example of Google’s willingness to make huge investments in its future with little concern for short-term gain. The company has reportedly spent nearly $100 million rolling Fiber out in Kansas City, which is just one of the two U.S. cities where Google Fiber has launched, with a third on the way.

According to one recent estimate, it will cost Google about $11 billion to cover just 20% of U.S. homes with its Google Fiber broadband service.

Of course, Google has plenty to gain from rolling out its broadband Internet service across the country.

Google Fiber, which provides customers with free 5Mbps Internet access or 1Gbps broadband for $70 per month, makes it easier and often times less expensive for people to access Google services. The more they access Google’s various services, the more money Google makes on ads.

Beyond that, Google Fiber encourages competition among cable service providers, resulting in cheaper TV service for consumers. Why is that a good thing for Google? Cheaper TV bundles free up more cash for households to spend on faster Internet service, thus providing more access to Google services.

And now, we may have just learned about another reason Google Fiber is so important for Google’s future.

A report issued on Thursday suggested that Google is actively working to launch its own wireless service. Details are scarce and obviously nothing has been confirmed, but this was the latest in a series of reports that date back to 2012.

This latest rumor suggests that Google has held talks with at least two wireless carriers, Verizon and Sprint, regarding an MVNO arrangement that would see Google resell access to their networks. This might be considered the path of least resistance for a Google wireless service, which could blanket the country from day one without heavy investments in infrastructure.

In the past, Google reportedly also negotiated with Dish over the possibility of a joint wireless service.

In Thursday’s report from The Information, however, we saw the most interesting tidbit yet regarding Google’s plans. According to the report, Google’s wireless service might also rely on Google Fiber Wi-Fi hotspots for data connectivity and for VoIP calling.

This ties in nicely with reports from 2012 that suggested Google’s wireless service might be data-only, relying on data connections instead of standard channels to deliver voice calls and text messages. Google already has the technology to facilitate this in its pocket thanks to products like Google Voice, which was born from Google’s GrandCentral acquisition back in 2007, as well as Hangouts and the VoIP tech it gained in 2009 when it bought Gizmo5.

Google is piecing together quite a puzzle, it would seem.

(Update: Here’s another nice piece of the puzzle, as noted by Engadget’s Matt Brian.)

Republic Wireless is an example of a wireless service provider that relies on a combination of Wi-Fi networks and cellular networks to provide customers with low-cost wireless service. Is Google planning to build out a similar system that relies multiple network types to deliver its service?

Moreover, will current wireless carriers in the U.S. help Google by providing access to their networks in order to supplement Google’s own Fiber network and other data networks it might lease for Wi-Fi coverage? Such arrangements could see U.S. wireless carriers dig their own graves as Google moves beyond this stopgap cellular solution in the years ahead.

However unlikely or far off these scenarios might seem, U.S. carriers should be positively terrified. If you think T-Mobile is a disruptive force in the wireless industry, wait until Google starts to gain momentum and carriers have no choice but to pivot or bleed.

Google’s goal appears to be nothing short of world domination. The technology giant may be working toward a future where it powers our smartphones, our tablets, our computers, the services we access on our devices and the networks we rely on for connectivity at home and on the go.

All Google, all the time.

[AsburySkinsFan]

Ok, I'm a geek, but and maybe it's early or I just don't feel like delving into a tech article this morning, but could you please just put these articles as simply and succinctly as possible?

[Slateman]

Google is challenging the big cable companies. Google's plan involves much better service at a cheaper price.

 

Now if they would just hurry up and get in to the DMV . . .

[dfitzo53]

Google is challenging the big cable companies. Google's plan involves much better service at a cheaper price.

 

Now if they would just hurry up and get in to the DMV . . .

That's exactly how I feel about it.  The big telecom companies have been hanging onto an archaic model for way too long.

[Forehead]

Ok, I'm a geek, but and maybe it's early or I just don't feel like delving into a tech article this morning, but could you please just put these articles as simply and succinctly as possible?

 

Succinct eh?  I like my internets like I likes my women, faster and cheaper.

[Popeman38]

Has anyone wondered why there in no overlap between the Google Fiber roll-out and the Verizon FiOS network?  Is it possible Google will acquire Verizon? I am an interested observer in this....

 

http://www.fiercecable.com/story/ten-reasons-google-should-own-verizon-2017/2014-02-20%C2'>

[autoidiodyssey]

Slateman, on 07 Apr 2014 - 08:38 AM, said:

Google's plan involves much better service at a cheaper price.

 

 

I think Google's plan is to become the dominant force in all things "internet". People can, in some ways, get around Google data mining by using other browsers and search engines. If they are providing the service they can track, data mine, and sell everything the users do.

 

The end of the second article JMS posted lays it out pretty well:

 

"Google’s goal appears to be nothing short of world domination. The technology giant may be working toward a future where it powers our smartphones, our tablets, our computers, the services we access on our devices and the networks we rely on for connectivity at home and on the go. All Google, all the time."

 

That being said, I would love to see something disrupt Verizon, AT&T, and Comcast.

[The Evil Genius]

edit..nevermind..

[JMS]

Has anyone wondered why there in no overlap between the Google Fiber roll-out and the Verizon FiOS network?  Is it possible Google will acquire Verizon? I am an interested observer in this....

Verizon's capitization is what 198.94 billion

http://www.wikinvest.com/stock/Verizon_Communications_(VZ)/Data/Market_Capitalization

I think Google would just build their own fiber network and save 100 billion.

[JMS]

I think Google's plan is to become the dominant force in all things "internet". People can, in some ways, get around Google data mining by using other browsers and search engines. If they are providing the service they can track, data mine, and sell everything the users do.

 

The end of the second article JMS posted lays it out pretty well:

 

"Google’s goal appears to be nothing short of world domination. The technology giant may be working toward a future where it powers our smartphones, our tablets, our computers, the services we access on our devices and the networks we rely on for connectivity at home and on the go. All Google, all the time."

 

That being said, I would love to see something disrupt Verizon, AT&T, and Comcast.

Yes I think Google was fine in letting these Telecom's exist in their niche markets.. but when they repealed Net Neutrality and procured the right to interrupt and even extinguish Google's master plan... Then they had to be destroyed. And that is what Google has undertaken...

Introduce a little consumer choice amongst companies who consumers have long disdained... Most consumers would pay more to leave Verizon, and AT&T and Comcast; because they suck at what they do. Only Google is largely going to provide better service for free, and charge little for a lot more..

[Slateman]

That's exactly how I feel about it.  The big telecom companies have been hanging onto an archaic model for way too long.

Agreed. I don't even mind the prices if the service would match. But it doesn't. Either charge less or give me more.

[Gamebreaker]

Yes I think Google was fine in letting these Telecom's exist in their niche markets.. but when they repealed Net Neutrality and procured the right to interrupt and even extinguish Google's master plan... Then they had to be destroyed. And that is what Google has undertaken...

Introduce a little consumer choice amongst companies who consumers have long disdained... Most consumers would pay more to leave Verizon, and AT&T and Comcast; because they suck at what they do. Only Google is largely going to provide better service for free, and charge little for a lot more..

 

 

This is how I, and nearly everyone I know, feels. You pay alot of money for very little down/up speeds and terrible customer service. In one of our half dozen snowstorms this year, I lost all three of my services from Verizon. Their customer service told me it would take two days to restore my internet, tv, and phone. After talking to a manager, I was told they had no one to send to me within 48 hours, I would not get any deduction off my monthly bill due to the inconvenience, and when I told him I could take my services elsewhere, he smugly told me how much I'd need to pay in a cancellation fee to due so. 

 

These companies need to be knocked down a peg. I just hope Verizon(who I believe owns all the backbone fiber in this region) doesn't dissuade Google from going forward with their plans by playing dirty when negotiating the license. 

[martytheman]

Google won't rest until they own the world.

I'm fine with the telcos getting kicked in the nuts though, they've had it coming for a long time.

[dfitzo53]

Google won't rest until they own the world.

Yeah, that's the only thing that makes me a little bit wary.

 

It seems like Google's endgame is like some dystopian graphic novel or video game where the country is run by MegaCorp.

 

I'm kind of kidding, I think.

[PokerPacker]

Yeah, that's the only thing that makes me a little bit wary.

 

It seems like Google's endgame is like some dystopian graphic novel or video game where the country is run by MegaCorp.

 

I'm kind of kidding, I think.

Google wouldn't know what to do with that kind of power.

[wantarace17]

All hail Google