Friday, April 19, 2013

Google's Fiber Takeover Plan Expands: Will Kill Cable & Carriers

Google's Fiber Takeover Plan Expands: Will Kill Cable & Carriers - Google is going to kill AT&T, Verizon, Sprint, T-Mobile and the cable companies. Kids don’t talk on the phone and they don’t have a ton of money. If they can be reasonably sure they’ll have a wifi network, then they are simply not going to sign up for AT&T or Verizon.

It’s game over... in five short years.
This hyped up prediction calls for a reality check.  In 2009, the U.S. Federal Communications Commission projected it would cost $350 billion to universally deliver 100 Mbps or faster Internet connections to all American homes and businesses, which would like Google's 1 Gigabit service would require fiber to the premise infrastructure. (Consider when the FCC issued this cost projection in September 2009, 100 Mbps was considered the gold standard for Internet throughput -- just one tenth of what Google fiber delivers.)

Assuming minimal change in the cost of deployment -- about 70 percent being labor -- that sizable sum would require Google to expend an average of $70 billion each of the five years -- $20 billion more than Google's reported revenues for 2012.  If this article's prediction were to become reality, Google would have to joint venture with other deep pocketed players since it alone could not hope to singlehandedly render the nation's cable and telephone companies obsolete in the span of just half a decade.

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