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Google Fiber Cutting Jobs and Halting Rollout

nytimes.com

41–50 of 382 posts

Re: Google Fiber Cutting Jobs and Halting Rollout

#41

Just as expected. It was just to force the network carriers to speed up wasn't it?

Force them to speed up (maybe) in a dozen cities? I don't think that's "just as expected."

If they have sped up in a couple of cities then the next cities will get soon too. You have to evaluate a new business move before scaling up. And data is one of their primary modes of income. Measurement is very valuable.

Re: Google Fiber Cutting Jobs and Halting Rollout

#42
post #21

Can't say I'm surprised. I expect Google fi to have a similar fate in a few years. It's not Google business.

What fate would that be? Fiber isn't going away, they have just stopped expansion. There are also hints about investing in other tech instead of laying new fiber across an entire city (WebPass as the article mentions). I agree that Fiber isn't Google business, which is why Alphabet was created. It allows for the company to try expanding into areas that aren't just software. Also, Google does a LOT of infrastructure w…

Fiber's operations and infrastructure will be sold to one of the major telecoms within the year (just like Google did with Motorola once it ceased to be useful). My money is on CenturyLink since Google's approach meshes well with their overbuilding strategy and footprint.

It's a 0-5% margin business for the foreseeable future; and best-case scaled scenarios it's a 10% margin business with huge capex. Google shouldn't be interested in anything with less than a 20% margin at scale. So from a portfolio standpoint, it was a stupid bet.

My guess is that Google entered the business without knowing all the nuance of the access world. They made an assumption that there was some magic bullet of architecture and comp sci that could lead to game-changing economies of scale. But it turns out the telecoms are pretty solid on the engineering / design side, and customer service and network maintenance are the big cost centers. Neither of those can be automated with algorithms or AI (well, network maintenance sort of can be, but the telecoms are already on top of it), so there's not a ton of opportunity for Google to leverage its strengths.

Running a datacenter is a very different business from running access networks. Operations that are cheap in a datacenter are expensive in the field (cable runs, equipment swaps, etc.) Likewise, there are different considerations around who does the work -- it makes sense to hire full-time people in a datacenter; less so when your equipment is scattered over a few million square miles. All of that leads to a very different operating model, so it's no wonder that Google couldn't figure it out.

Re: Google Fiber Cutting Jobs and Halting Rollout

#43

Anybody know what is going on here? This seems like a page out of Verizon's FIOS rollout. Is Google working on their own cellular network (non-MVNO)? Is this due to the FCC reclassification of internet as a common carrier?

It's due to the fact that building a decent network for residential customers at scale is very expensive and not that profitable unless you have a long-term monopoly.

Re: Google Fiber Cutting Jobs and Halting Rollout

#45

Just as expected. It was just to force the network carriers to speed up wasn't it?

Force them to speed up (maybe) in a dozen cities? I don't think that's "just as expected."

I certainly have no idea if it's because of fear of Google Fiber, but AT&T has started rolling out their fiber offering in the Charleston, SC suburbs over the past year. It's not all doom and gloom.

Re: Google Fiber Cutting Jobs and Halting Rollout

#46

Building infrastructure is hard. Even 100 years later we still have original AT&T (Verizon and AT&T) as the dominant telecommunications company. Google also seems to just give up on a lot of its products: Google+ Hangouts Project Ara Google Buzz Google video Orkut Talk Meebo etc. http://www.lemonde.fr/pixels/visuel/2015/03/06/google-memori...

Actually, we don't have the original AT&T. They went bankrupt. Cingular Wireless bought the bankrupt assets and changed their name to AT&T. But yes, building infrastructure is hard.

Cingular is descendant of the original AT&T.

http://crooksandliars.com/files/vfs/2011/03/AT&T.jpg

Re: Google Fiber Cutting Jobs and Halting Rollout

#47

That sucks for citizens of the US. I think the Swedish (Nordic?) model for bringing internet connectivity to it's citizens is superior. The municipalities own (most of) the networks and all the fiber cables, letting companies use them for a small(ish) fee. These companies later sell it to customers. This help people to get the best deals and ensure that the networks are continually upgraded. For example, I have 250/1…

Why not skip the middle step and just have the municipalities provide it to the customers directly?

> Why not skip the middle step and just have the municipalities provide it to the customers directly?

Because monopolies are wasteful and horrible at things like customer service. The fiber in the ground is a natural monopoly. Connecting that fiber to the rest of the world isn't. You don't want the monopoly to extend one inch more than it has to, regardless of whether the natural monopoly is municipal or Comcast.

Re: Google Fiber Cutting Jobs and Halting Rollout

#48

That sucks for citizens of the US. I think the Swedish (Nordic?) model for bringing internet connectivity to it's citizens is superior. The municipalities own (most of) the networks and all the fiber cables, letting companies use them for a small(ish) fee. These companies later sell it to customers. This help people to get the best deals and ensure that the networks are continually upgraded. For example, I have 250/1…

Why not skip the middle step and just have the municipalities provide it to the customers directly?

This is what my city is doing. They just brought fiber to my home, and I pay $50/mo for bidirectional gigabit. I pay for it alongside my trash and water bill. (Longmont, CO)

Re: Google Fiber Cutting Jobs and Halting Rollout

#49

Can't say I'm surprised. I expect Google fi to have a similar fate in a few years. It's not Google business.

I think the business, regulatory and infrastructure requirements are entirely different. They co-opt existing networks and only have to provide a SIM card, like other MVNOs. They don't have to deal with multi-year back-room deals for community access to dig trenches or hang wire to get into neighborhoods. I'm a Google fi user and I hope that your prediction doesn't come true. It's a fantastic service. If Google fiber was available in my neighborhood I'd be a subscriber to that too, so perhaps I'm a bit biased. :)

Re: Google Fiber Cutting Jobs and Halting Rollout

#50

That sucks for citizens of the US. I think the Swedish (Nordic?) model for bringing internet connectivity to it's citizens is superior. The municipalities own (most of) the networks and all the fiber cables, letting companies use them for a small(ish) fee. These companies later sell it to customers. This help people to get the best deals and ensure that the networks are continually upgraded. For example, I have 250/1…

Where does the capital come from to do this and how do you serve remote areas outside of towns.
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