& 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.

    From The Founder
    The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
    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 Documentaries
    Leading Lights 2016 Highlights

    5|25|16   |   02:26   |   (1) comment


    Some of the high points from this year's Leading Lights awards dinner at the Hotel Ella in Austin, Texas.
    LRTV Documentaries
    Light Reading Hall of Fame 2016

    5|23|16   |   05:43   |   (0) comments


    Find out who has been welcomed into Light Reading's Hall of Fame this year.
    LRTV Custom TV
    ZTE TM Forum Highlights

    5|23|16   |     |   (0) comments


    ZTE showcased its new ICT solutions at TM Forum in Nice.
    LRTV Interviews
    Gamma's MD on the Emergence of UC2

    5|20|16   |     |   (0) comments


    Gamma Communications Managing Director David Macfarlane believes the unified communications (UC) market has reached a tipping point.
    LRTV Custom TV
    The Ultimate 5-Minute Guide to Digital Customer Engagement

    5|20|16   |     |   (0) comments


    In this short video, you will hear all about how Digital Customer Engagement is the key to meeting customer expectations, keeping them happy, and maximizing revenue. VP Product & Marketing at Pontis, Ofer Razon, breaks down for us the five essential capabilities for successful Digital Customer Engagement. Don’t miss!
    LRTV Custom TV
    NFV in 2016: Part 1 – NFV Use Cases Get Real

    5|19|16   |   05:57   |   (0) comments


    Consensus is building around the key use cases for NFV, including managed IP services at the network edge and on customer premises, which can generate new revenues from enterprises/SMBs and consumers; Evolved Packet Core to support LTE migration; and adjacent technologies, such as TAS and IMS, to support VoLTE and next-generation charging and policy control ...
    LRTV Custom TV
    Nokia's Steve Vogelsang on NFV – Part 3

    5|19|16   |     |   (0) comments


    Steve Vogelsang discusses the challenges of operational transformation and how Nokia helps its customers. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
    LRTV Interviews
    Level 3: Why UC Is In Demand

    5|17|16   |   04:12   |   (1) comment


    Andrew Edison, Level 3's senior VP of sales, EMEA region, talks about the drivers of growth in the unified communications services market.
    LRTV Custom TV
    ARM's OPNFV Action

    5|17|16   |     |   (0) comments


    At the ARM booth at MWC 2016, Joe Kidder and Bob Monkman speak to Light Reading about OPNFV and their upcoming action.
    LRTV Custom TV
    Nokia's Steve Vogelsang on NFV – Part 2

    5|16|16   |     |   (0) comments


    Steve Vogelsang gives advice to service providers on how to move to NFV. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
    LRTV Interviews
    Interoute CTO on NFV's Maturity

    5|13|16   |   06:46   |   (1) comment


    Matt Finnie, CTO at international operator Interoute, explains how NFV has made life easier in terms of logistics and how Interoute can now enable a 'software-defined moment' for its customers.
    LRTV Huawei Video Resource Center
    UBBS 2016 Highlights

    5|12|16   |     |   (0) comments


    Highlights of Huawei's UBBS event in Hong Kong.
    Upcoming Live Events
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    December 6-8, 2016,
    June 16-18, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    DT: Telcos Must Escape Vendor Prison
    Iain Morris, News Editor, 5/24/2016
    AT&T to Start 5G 'Friendly' Trial by 2016 End
    Dan Jones, Mobile Editor, 5/24/2016
    WiCipedia: Short Skirts & Back-Up Plans
    Eryn Leavens, Special Features & Copy Editor, 5/20/2016
    Eurobites: Be More European, EU Tells Streaming Services
    Paul Rainford, Assistant Editor, Europe, 5/20/2016
    Cable Is Eyeing Its Retail Options
    Mari Silbey, Senior Editor, Cable/Video, 5/25/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    Animals with Phones
    Live Digital Audio

    Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.