[opendtv] Re: Webpass_is_leaving_Boston_in_latest_sign_of_Google Fiber shrinking ambitions

From: Craig Birkmaier <brewmastercraig@xxxxxxxxxx>
To: opendtv@xxxxxxxxxxxxx
Date: Wed, 31 Jan 2018 10:00:14 -0500

So Google is pulling back from broadband deployments, at least for now:

Google Fiber announced its acquisition of Webpass in June 2016 amid reports
that executives at Alphabet (including Larry Page) had demanded a scaling
back of Fiber’s costly rollout ambitions. Layoffs and executive departures
followed, and a few months later in October, Google Fiber announced it would
pause deployment efforts in nine cities. The company also recently cancelled
hundreds of installations in Kansas City, its original launch market.

The wireless approach that Webpass uses is less expensive than laying fiber
optic cable in the ground and doesn’t come with the same local approval
hurdles and slow progress that Google Fiber faced back when it seemed like
Google was serious about taking on Comcast and other broadband providers.

If Google can’t deploy fiber-based broadband profitably - even in cities that
handed off failed municipal broadband at a significant discount - What does
this tell us?

Here are a few possibilities;

1. The cost to deploy fiber is simply too expensive, relative to the revenues
that can be generated now, and in the future;

2. Fixed wireless offers the potential to significantly reduce the cost to
deploy broadband systems;

3. If fixed broadband can be deployed at lower cost, it can be sold at a lower
price. This suggests that the cost for broadband is likely to decline in the
future, just as the cost of cellular telephony/data has declined dramatically
thanks to rapid technical innovation, massive investment, and competition.

It may also indicate that broadband will become a commodity, bundled with other
higher margin services that it enables.

And then there is the elephant in the room:
- the hurdles imposed by local approvals and the resulting delays
- the permanent costs associated with right-of-ways and pole attachments
- The costs associated with franchise fees and taxes on service.

Small wonder we are seeing some backlash from technically savvy Millennials,
who share one broadband subscription via Wi Fi mesh lash-ups...

Regards
Craig

On Jan 30, 2018, at 11:04 PM, Monty Solomon <monty@xxxxxxxxxx> wrote:

Webpass is leaving Boston in latest sign of Google Fiber’s shrinking ambitions

Google Fiber isn’t just stalling; now it’s shrinking

https://www.theverge.com/2018/1/30/16952588/webpass-google-fiber-internet-leaving-boston

[opendtv] Re: Webpass_is_leaving_Boston_in_latest_sign_of_Google Fiber shrinking ambitions

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