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Google Fiber is coming to Atlanta, Charlotte, Nashville and Raleigh-Durham

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Re: Google Fiber is coming to Atlanta, Charlotte, Nashville and Raleigh-Durham

#131
post #54

I'm fully aware of the extreme cost of rolling out a fiber infrastructure in new locations, but I still wonder why Google isn't more aggressive with their expansion. While the upfront costs are great, they more or less have guaranteed success in most major cities. Nobody likes the incumbent telcos--they're hated all over the US. I just dream of a world in which we aren't getting raped by Comcast, TWC, and Cox. They a…

Google has only been expanding to cities that give them extensive tax breaks and other perks that haven't been afforded to most other companies. This is a good thing as it allows Google to expand, but they would never do this unless they got these incentives, plus the guaranteed number of users pre-signed up for the service so that they can guarantee some sort of ROI.

The big telecom companies got massive tax breaks at various times over the last 20 years to deploy high speed broadband, and essentially defrauded customers and tax payers by not doing what they said they would.

One example of many:

https://www.techdirt.com/articles/20131012/02124724852/decad...

Re: Google Fiber is coming to Atlanta, Charlotte, Nashville and Raleigh-Durham

#132
post #92
post #16

Is there any rime or reason to the cities that Google chooses to put fiber into? Is it a matter of more friendly local government, less resistant local teleco's, a combination thereof or some other factors? Just seems the locations aren't exactly tech hubs so I'm trying to get a better idea of how the expansion works.

Dude, Raleigh is home to the Research Triangle Park, one of the largest research parks in the country. Pretty much all the major tech companies have a presence here. Plus, three major universities all in the same general area. It's not some podunk little town.

Technically, RTP is fully inside Durham. Raleigh, Durham and Chapel Hill each house one of those major universities, and the region as a whole is known as "The Triangle" or "The Research Triangle."

Re: Google Fiber is coming to Atlanta, Charlotte, Nashville and Raleigh-Durham

#133
post #71

Earlier quoted context omitted.

There's no money in building "dumb pipes" to the internet. Verizon's wireline margin over the last couple of quarters has been under 5% ( http://arstechnica.com/business/2015/01/verizon-nears-the-en... ). Note Google has never revealed how much profit Fiber actually makes. The existing networks are fast enough to service what makes the money: video services. The cable companies will only upgrade the pipes to the exte…

Walmart has 3% net income margins; Costco has 2% net income margins; Target has 3% net income margins; BestBuy in its best days had 4% net income margins. By that premise, nobody should have ever built grocery stores or most retail outlets.

Retail is far less capital intensive. WalMart generates almost 6x the revenue per dollar of invested capital as Verizon.

Re: Google Fiber is coming to Atlanta, Charlotte, Nashville and Raleigh-Durham

#135
post #6

For anyone interested... the whole motivation of Google Fiber to motivate ISPs to stop gouging us does exactly what it is designed to do. Cox, in Phoenix, miraculously doubled everyone's speeds > 100mbps last year because they were concerned with our general happiness levels and wanted to show their affection. Nope... that's not it. Ran into two leads at Smash Burger in June of 2014 and asked them on the spot "When a…

Also worth noting that Google isn't doing this because: 1) They want to be an ISP 2) They feel bad for America and want us to enjoy faster internet. They're doing it because they have plans for products which necessitate nationwide high speed internet. I don't know what those plans are... maybe making YouTube the everything-video-delivery-system, maybe massively collaborative work tools as they expand Google Docs et…

And you know what? I'm fine with that. If Google wants to go and improve my internet experience as a part of some master plan where they do make a boatload of money, I'm perfectly happy to go along with that plan.

Re: Google Fiber is coming to Atlanta, Charlotte, Nashville and Raleigh-Durham

#136
post #16

Is there any rime or reason to the cities that Google chooses to put fiber into? Is it a matter of more friendly local government, less resistant local teleco's, a combination thereof or some other factors? Just seems the locations aren't exactly tech hubs so I'm trying to get a better idea of how the expansion works.

Friendly local government is a big factor. For example: Google looked at Seattle's NIMBY laws regarding utility boxes on sidewalks (each requiring a lengthy community approval process) and said, "Nope!" Seattle's new mayor is now looking how to streamline the process to make the city more Google friendly, should the opportunity arise again.

Please Google, come back to Seattle! Pleaaaassseee!

Re: Google Fiber is coming to Atlanta, Charlotte, Nashville and Raleigh-Durham

#137

Earlier quoted context omitted.

That's what happened when GMail offered 2 GB inboxes. The competition got serious.

> The competition got serious. It's interesting how pure competition and "rational self-interest" got us the likes of Comcast and Cox and Verizon and all these other awful, awful companies. They quickly locked up the market, injected their own lobbyists into Washington, and then were content to provide a poor service for a lot of money. What is shaking them out of their complacency now is not "the market" or "competi…

I tend to think that it's just really easy to look at things on too-small a timescale.

Consider the extreme: in a single second, there aren't any discernible market pressures in the ISP industry, and it would be weird to expect it.

Which is mainly to say that it is important to talk about how quickly you want competition and market forces to come into play (not just that you want them to) when talking about why and how to change "the system".

Re: Google Fiber is coming to Atlanta, Charlotte, Nashville and Raleigh-Durham

#138

Earlier quoted context omitted.

> The competition got serious. It's interesting how pure competition and "rational self-interest" got us the likes of Comcast and Cox and Verizon and all these other awful, awful companies. They quickly locked up the market, injected their own lobbyists into Washington, and then were content to provide a poor service for a lot of money. What is shaking them out of their complacency now is not "the market" or "competi…

"with goals beyond pure financial gains and rock-bottom self-interest." This doesn't paint an accurate picture. Google isn't deploying Fiber out of any notion of selflessness. This is a competitive play, and a very good one at that. You say selfless ideals, I say this is exactly how "the market" and "competition" are commonly understood to function -- in the absence of corruption, regulatory capture and state granted…

> This is a competitive play, and a very good one at that.

Absolutely it is, yes. You're just not looking beyond that level.

Re: Google Fiber is coming to Atlanta, Charlotte, Nashville and Raleigh-Durham

#139

Earlier quoted context omitted.

Friendly local government is a big factor. For example: Google looked at Seattle's NIMBY laws regarding utility boxes on sidewalks (each requiring a lengthy community approval process) and said, "Nope!" Seattle's new mayor is now looking how to streamline the process to make the city more Google friendly, should the opportunity arise again.

> Google looked at Seattle's NIMBY laws regarding utility boxes on sidewalks (each requiring a lengthy community approval process) Which is good, as sidewalks are for walking, not utility installation pads. In much of the UK outside conservation areas BT has powers to install cabinets as it sees fit. Combined with utility poles there are now some pavements on my town impassable to prams.

The parent was downvoted, but this is actually true in the UK. The are utility boxes in some really strange locations. Such as a bicycle lane that runs straight into a box, then just continues on the other side.

Re: Google Fiber is coming to Atlanta, Charlotte, Nashville and Raleigh-Durham

#140
post #6

For anyone interested... the whole motivation of Google Fiber to motivate ISPs to stop gouging us does exactly what it is designed to do. Cox, in Phoenix, miraculously doubled everyone's speeds > 100mbps last year because they were concerned with our general happiness levels and wanted to show their affection. Nope... that's not it. Ran into two leads at Smash Burger in June of 2014 and asked them on the spot "When a…

Also worth noting that Google isn't doing this because: 1) They want to be an ISP 2) They feel bad for America and want us to enjoy faster internet. They're doing it because they have plans for products which necessitate nationwide high speed internet. I don't know what those plans are... maybe making YouTube the everything-video-delivery-system, maybe massively collaborative work tools as they expand Google Docs et…

> This is a business plan.

It is, but not because they have a plan beyond it, though.

Cox/Time-Warner/etc. basically shook down Google for money a couple of years ago. Google backed down and the last-mile ISPs thought they won.

Google, of course, was extremely unhappy to painfully discover that there was insufficient competition if the ISP's decided to play dirty and block their ads. So, Google now looks at the ISP's as a pure, existential threat that they must neutralize.

So, even if the ISP's upgrade or get really cheap, Google doesn't care. This is about making sure that no company ever has the ability to cut off Google's flow of ads to the consumer ever again.

Google will roll out fiber even if it's somewhat unprofitable just to slowly squeeze the ISP's into obeisance.

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