& cplSiteName &

Google Fiber's Drive for Density

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
7/27/2012
50%
50%

Welcome to the broadband and cable roundup, T.G.I.F. edition.

  • While it's "unlikely" that Google Fiber's US$300 upfront construction fee will cover all the costs of the fiber drop materials, required in-home boxes and devices (including the Nexus 7 tablet) and the truck roll and installation labor for each new customer that takes the company's broadband/TV bundle, Sanford C. Bernstein & Co. Inc. notes that Google (Nasdaq: GOOG)'s customer acquisition model should at least make the effort economically palatable. Getting people in a given "Fiberhood" to pre-register ensures that Google Fiber will reach a minimum customer threshold in the initial deployment period, giving it the kind of density that will help it to maximize the number of installs that can be done per day. But the firm, which counts Time Warner Cable Inc. (NYSE: TWC) among the big cable stocks it covers, is skeptical about whether Google's approach will attract a lot of customers and if the project can be turned into a profitable business "without material subsidies." (See The Google Fiber Threat and Google Fiber Bundles TV, Shuns Data Caps.)

  • But Google tells GigaOm that its deployment and customer acquisition model will put it in the black, claiming that the upfront fees will cover the bases. The story also explores several ways Google Fiber is shaving costs, including the reliance on bulk deployments in those aforementioned Fiberhoods, and the use of home-grown network gear and in-home devices, including the storage box that will serve as the home's DVR -- a decision that keeps Google from having to buy more expensive boxes from sources such as Cisco Systems Inc. (Nasdaq: CSCO).

  • And yet more Google Fiber stuff ... Google's giving Kansas Citians a chance to test drive its 1-Gig and TV services, while partaking of some tempting refreshments, starting Saturday (July 28) at a facility called Fiber Space. The catch? It's by appointment only. Tell them you're with Marissa Mayer. (See New Yahoo CEO: Cable Friend or Foe?.)

  • In a bid to improve margins and shed costs, UTStarcom Inc. (Nasdaq: UTSI) will unload its IPTV equipment business and turn it into a privately held, standalone company to be led by current UTStarcom CEO Jack Lu. COO William Wong has been tapped to take over Lu's current role at UTStarcom once the company has done the splits. The vendor's IPTV business, which includes both infrastructure gear and software and set-top boxes, accounts for about one-third of UTStarcom's revenues, which totalled $46.7 million in the first quarter of this year. The company said the divestiture, expected to close by the end of August, will reduce annual expenses by $17 million.

  • The Federal Communications Commission (FCC) says nearly 400,000 residents and small businesses in 37 states will get high-speed Internet within three years as a result of the first phase of the Connect America Fund. The full goal is to connect 7 million Americans in rural, unserved areas in six years. This map illustrates how the funds are being allocated in the initial go-round:



  • But some big carriers aren't joining the fun. AT&T Inc. (NYSE: T) and Verizon Communications Inc. (NYSE: VZ) declined the funding they'd been offered to help bring broadband to rural America during phase one, reports Telecompetitor. AT&T said "no thanks" to $47.8 million, noting that it's evaluating its options for rural broadband, while Verizon turned down $19.7 million, while at the same time saying it supports Universal Service Fund reforms. Who says these companies aren't all heart?

  • Cable veteran Michael Pohl has been named chairman of advanced video advertising vendor BlackArrow Inc. , succeeding Larry Kramer, who's off to be president and publisher of USA Today. Pohl, a BlackArrow board member since last year, used to chair the board of BigBand Networks Inc. and was CEO of nCUBE Corp., two video tech companies that are now part of Arris Group Inc. (Nasdaq: ARRS).

    — Jeff Baumgartner, Site Editor, Light Reading Cable

    (7)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    AESerm
    50%
    50%
    AESerm,
    User Rank: Light Beer
    12/5/2012 | 5:25:57 PM
    re: Google Fiber's Drive for Density


    Maybe something other than big heart that led T and VZ to decline the $. After all, Fairpoint only took 1/2 of what it was offered, Centurylink about 1/3 and Windstream about 1%.

    fgoldstein
    50%
    50%
    fgoldstein,
    User Rank: Light Sabre
    12/5/2012 | 5:25:54 PM
    re: Google Fiber's Drive for Density


    That's the question the PCCs asked themselves.  If you're VZ or ATT, you're now a wireless company with some wireline systems that provide backhaul to the cells.  They're milking hte heavily-depreciated wireline plant to death.  They don't want the rural business at all.


    If you're Windstream, you're becoming a big national CLEC funded by a rural USF ILEC, but the rural ILEC stuff is just not so interesting any more.


    If you're Frontier, you're not much more than a rural ILEC and will take any money that improves those profit margins.  No wireless, not much urban turf, so CAF is addressing what you do for a living.  So they're the major Phase I recipient.


    If you're CLQ, it's all bluster, whining about WISPs, but you've got a worn-out old plant and you're just milking it for whatever it's worth, investing where the margins are good but not much more.


     

    kaps
    50%
    50%
    kaps,
    User Rank: Light Beer
    12/5/2012 | 5:25:49 PM
    re: Google Fiber's Drive for Density


    Didn't see any mention in the Google Fiber news this morning about businesses potentially using the service to power Wi-Fi. Is the google service consumer only?

    kaps
    50%
    50%
    kaps,
    User Rank: Light Beer
    12/5/2012 | 5:25:49 PM
    re: Google Fiber's Drive for Density


    Didn't see any mention in the Google Fiber news this morning about businesses potentially using the service to power Wi-Fi. Is the google service consumer only?

    kaps
    50%
    50%
    kaps,
    User Rank: Light Beer
    12/5/2012 | 5:25:48 PM
    re: Google Fiber's Drive for Density


    I'm just thinking out loud here but... fiber backbone... set-top boxes... White Spaces and Wi-Fi wireless development and gear... Moto handset technology... Wireless OS in Android... 


    What's missing? Looks like a potential new wireless/wired ecosystem to me.

    kaps
    50%
    50%
    kaps,
    User Rank: Light Beer
    12/5/2012 | 5:25:48 PM
    re: Google Fiber's Drive for Density


    I'm just thinking out loud here but... fiber backbone... set-top boxes... White Spaces and Wi-Fi wireless development and gear... Moto handset technology... Wireless OS in Android... 


    What's missing? Looks like a potential new wireless/wired ecosystem to me.

    joanengebretson
    50%
    50%
    joanengebretson,
    User Rank: Light Beer
    12/5/2012 | 5:25:48 PM
    re: Google Fiber's Drive for Density


    On the webcast Google said they would be announcing more re a business offering in the future. Your idea about using the gigabit service to power WiFi is an interesting one. I'm sure a lot of people will be looking forward to see what Google comes up with for the business market.

    patentchoi
    50%
    50%
    patentchoi,
    User Rank: Light Beer
    12/5/2012 | 5:25:41 PM
    re: Google Fiber's Drive for Density


    Will this service be in Beta for the next 7 years :-)


     


    Seriously what kind of SLA do they provide ?

    steve q
    50%
    50%
    steve q,
    User Rank: Light Sabre
    12/5/2012 | 5:25:40 PM
    re: Google Fiber's Drive for Density


    I see this a bad move for Verizon if they do not show the world that there Fios data network is the best. People will end up to move to other carrier even if fios is much better. Verizon will gain more customer away form the cable company like comcast and time warner,if they join with goggle like they did with the redbox the cost to verizon is nothing then the cost and hope for a better service to those customer with the AWS the verizon wireless service will not make a grade to what fios is to customer and our busines custome that need speed not hope. That 4g will give.

    Educational Resources
    sponsor supplied content
    Educational Resources Archive
    From The Founder
    Either we perform a complete 'factory reset' on the way the telecom industry creates and deploys virtualization, or we face the consequences.
    Flash Poll
    Live Streaming Video
    Charting the CSP's Future
    Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
    LRTV Custom TV
    The Urgency of Commercial 5G Services

    4|26|17   |     |   (0) comments


    The progress of 5G has been closely monitored in the industry. At the 2017 Brooklyn 5G Summit, the sense of urgency for a commercial 5G launch had started to surface among operators.
    Women in Comms Introduction Videos
    How Diversity Helps Comcast Mirror Its Customer Base

    4|26|17   |   2:55   |   (0) comments


    Diversity brings innovation, creative ideas and a way to reflect the broad spectrum of your customer base, Comcast Director of Customer Experience Jenelle Champlin says.
    LRTV Huawei Video Resource Center
    Mobile Operators & Video

    4|25|17   |     |   (0) comments


    Ovum's Ed Barton discusses the latest mobile operator strategies for mobile video.
    LRTV Custom TV
    Infinera Introduces Instant Network

    4|20|17   |     |   (1) comment


    Mike Capuano, vice president of marketing at Infinera, discusses the advancement from Instant Bandwidth to new Instant Network capabilities, which include Bandwidth License Pools, Moveable Licenses and Automated Capacity Engineering (ACE).
    Women in Comms Introduction Videos
    Vodafone's Eubank on Sponsors, Mentors & Moving On Up

    4|19|17   |   4:25   |   (0) comments


    Vodafone America's Head of Operations Kimberly Eubank breaks down the difference between a sponsor and a mentor and shares why both made a big difference in her career.
    LRTV Custom TV
    NYC Auto Show: Are We Smart Yet?

    4|18|17   |     |   (0) comments


    The auto industry is facing some big transformations as electric vehicles, autonomous technology and connected cars are seen as the future of the industry. During the much-anticipated NY international auto show, there was an emergence of new technology and mobility service on the show floor. Aside from performance, brands like Lincoln, Hyundai, Honda, Mercedes and ...
    LRTV Huawei Video Resource Center
    The Impact of Video

    4|18|17   |     |   (0) comments


    David Mercer from Strategy Analytics discusses the impact of video on current strategies.
    LRTV Custom TV
    Pardeep Kohli Discusses Network Transformation & the Market Opportunity for the 'New' Mavenir Systems

    4|13|17   |     |   (0) comments


    In a brief discussion at MWC 2017, Heavy Reading analyst Adi Kishore talks to Pardeep Kohli, CEO, Mavenir Systems about the creation of the 'new Mavenir' and some of the key challenges facing operators in today's market. A key theme of the discussion centers around operator need for software-only, virtualized solutions and how they will need to adapt to ...
    Women in Comms Introduction Videos
    Tech Maverick Shares Her Tips for Gender Inclusivity

    4|12|17   |   7:28   |   (0) comments


    Wendy Hall Bohling, a corporate escapee, author and gender exclusivity consultant, tells her story of sexism, bias and progress along the road to gender equality in the workforce.
    LRTV Huawei Video Resource Center
    Huawei at MWC 2017

    4|11|17   |     |   (0) comments


    At Mobile World Congress 2017, the biggest mobile industry gathering of the year, Huawei showcased its new innovations and solutions with the theme "Open Road," which focuses on cloud, 5G, operation transformation, videos and consumer-oriented products. Its campaign has been recognized by three awards given by GSMA.
    LRTV Custom TV
    China Telecom NFV Infrastructure on RSD

    4|6|17   |     |   (0) comments


    Lynn Comp, senior director of market development of Intel, is joined by Chong Zhang, storage engineer at Inspur and Ou Li Yan, architect for technology strategies of China Telecom, for a discussion of what NFV brings.
    LRTV Custom TV
    Nokia's IMPACT Software Demo

    4|6|17   |     |   (0) comments


    Khamis Abulgubein of IoT market development at Nokia demonstrates IMPACT (intelligent management platform for all connected things), a software solution with a horizontal approach to managing any device on any application.
    Upcoming Live Events
    May 15-17, 2017, Austin Convention Center, Austin, TX
    May 15, 2017, Brazos Hall - Austin, TX
    May 15, 2017, Austin Convention Center - Austin, TX
    June 6, 2017, The Joule Hotel, Dallas, TX
    All Upcoming Live Events
    Infographics
    With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
    Hot Topics
    Surprise! AT&T Markets 4G Advances as '5G Evolution'
    Dan Jones, Mobile Editor, 4/25/2017
    Did Verizon Outbid AT&T for Straight Path?
    Dan Jones, Mobile Editor, 4/25/2017
    First Year TIPs the Scale Toward Success
    Denise Culver, 4/24/2017
    Ericsson's Q1 Even Worse Than Feared
    Iain Morris, News Editor, 4/25/2017
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
    TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
    Live Digital Audio

    Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.