Is Google Fiber Calling It Quits?

By Admin | October 27, 2016

| Wireless Networks |

Screen Shot 2016-10-27 at 1.46.40 PM.pngAccording to a recent blog post from Google, it's more of a "pause" until operations can refine their approach to trying to offer more people super fast Internet. The post was written by Craig Barratt, who was serving as chief but will now step down and be only an advisor to the program. No immediate replacement has been named. In addition, Google Fiber will not finish it's installment in San Francisco, the next city on its deployment list, and the remaining 11 cities have been paused as well for the time being. So what does this all mean for Google Fiber?

While there are myriad reasons that Fiber to the Premise (FTTP) has become more challenging than expected, RESOLUTE Partner's CEO Michael Blanco references Gartner's Hype Cycle. "FTTP with either home, business, plant, etc seems to follow the standard and well-documented Gartner’s Hype Cycles," said Blanco. "I think Google has realized that it's 'not all it's cracked up to be' with lower subscription rates, lower take rates, and high costs. It's sobering to them trying to get that last 20% of ad watchers." Blanco goes on the explain how FTTP fits into each of the 5 hype cycles:

  1. Technology Trigger - The idea of FTTP sounds great; Fantastic speeds; Future proofing expansion.
  2. Peak of Inflated Expectation - Everyone wants it. The Fed/Sate Gov will pay for it. Residents will fight to get it. LECs say it will help them connect the last mile. It will save the world and make your coffee taste better.
  3. Trough of Disillusionment/Despair - Cost is too high; Fed/States run out of money; The physical disruption of construction is horrible; Even with the subsidy’s no one wants to pay for it; There are not enough applications for gigabit service; Customers realize they don’t really use the speed.
  4. Slope of Enlightenment - Some Apps start showing up that can take advantage of it.; A few pockets of success show up; A couple cities/Towns land a Millennial population that claims they moved because of bandwidth; A couple entrepreneurs in the middle of nowhere launch a successful e-Commerce business that creates jobs.
  5. Plateau of Productivity - The places that can do it reasonably – both CAPEX and OPEX are completed; high bandwidth applications continue to emerge; realistic uses and expectation for the avg person are accepted.

"I think their acquisition of the wireless company shows they will want the eyeballs, but a hybrid solution of Fiber and wireless can lower CAPEX cost and connect the more expensive and far flung locations," said Blanco. "Resolute is a strong believer in hybrid solutions and have been rolling out similar systems in recent years." 

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