Light Reading
5:00 PM Eric Schmidt says Google's fiber project is 'not an experiment' and hints at expansion. But what else is he really supposed to say?

Google Fiber's Non-Experimental Experiment

Jeff Baumgartner
The Bauminator
Jeff Baumgartner
12/12/2012
50%
50%

5:00 PM -- If we're to take Eric Schmidt at his word, the Google Fiber project in the Kansas Cities is so much more than that.

"It's actually not an experiment; we're actually running it as a business," the Google (Nasdaq: GOOG) executive chairman said Wednesday at The New York Times's Dealbook Conference, noting that the company hopes to bring its fibery goodness to "more cities."

I take that to mean that Google Fiber's goal is not to see how much money it can flush down a black hole. After all, he's in charge of running the Google business, so I wouldn't expect him to say anything different. But it's also too early to say if Google's demand-driven deployment approach will turn out to be a viable moneymaking venture. It's just now starting to get paying customers. (See Google Fiber Starts to Hook Up Customers and KC Gets Google Fiber for Real in October.)

But I certainly wasn't surprised that Schmidt didn't go out of his way to also volunteer that Google has a nifty out clause if things go south or it simply decides it would rather hand the keys over to a "third party." (According to its agreements with the cities, Google can terminate its deals two years after it started building the networks in Kansas City, Kan., and Kansas City, Mo.) (See TWC Wants Piece of Google Fiber's Sweet Deal .)

Considering the projected costs, it's highly unlikely that Google will ever replicate what it's doing in Kansas City on a national scale. But if the effort in the Kansas Cities does end up making business sense, we already know that hundreds of cities would line up to give Google a shot at another sweetheart deal. So I would not put a new, one-off Google Fiber project beyond the realm of reason. (See Googlemania!)

But until Google proves that its fiber ambitions extend beyond the Kansas City region, the threat to cable operators is mostly empty. That means that the MSOs don't have to go out and deploy 1Gbit/s Docsis 3.0 technology tomorrow. But it does prod them to at least keep their foot on the gas and have it ready to roll once there's real demand for it. (See Google's Pointy Stick and More Docsis 3.0 Gateways Gun for 1-Gig .)

— Jeff Baumgartner, Site Editor, Light Reading Cable

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
1/10/2013 | 4:00:11 AM
re: Google Fiber's Non-Experimental Experiment


Running it as a business and turning it into a business are two different things. Some other quotes from Schmidt from today's talk:


Google Fiber coming to “hopefully more cities if we’re able to expand our service.”


When will Google know whether they'll expand?  “We’re trying to decide now.”


Keep the threat alive, but don't commit to anything more yet. Smart. JB


 


 

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
1/10/2013 | 4:00:11 AM
re: Google Fiber's Non-Experimental Experiment


Yes, they'd be wise to be paying close attention to that. Interestingly enough, Google said at the start that it will use the network to experiment with the kinds of apps and services that require those higher speeds.  So apparently that part of the effort is indeed experimental while they try to run the network as a money-making business venture. JB


 

More Blogs from The Bauminator
Don't expect anything more to pop for a while, but one analyst sees John Malone & Co. as the 'logical, ultimate acquirer of Ziggo' if the price is right
Cable operators will need to free up at least 24MHz of spectrum for Docsis 3.1. But why is that the magic number?
Liberty Media's rumored plan to snag a 25% stake in Charter for $2.5B could aid the MSO's M&A strategy
Top US cable operators lost 1.41 million video subs in 2012, but the bleeding continues to show signs of slowing in a saturated pay-TV market
Aereo streams its 'no cable required' tagline into the video world. Will consumers tune in to the message?
Flash Poll
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
LRTV Huawei Video Resource Center
Huawei's Media Solutions Are Here to Stay

9|19|14   |   4:35   |   (0) comments


The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
LRTV Huawei Video Resource Center
Microgenesis on Huawei's Switches

9|19|14   |   3:57   |   (0) comments


Microgenesis is a solutions and system integrator company in the Philippines whose areas of expertise include data centers, networking and security products. In this video, Executive Director Jeffrey Choa talks to us about his customers needs and they benefit from using Huawei switches.
LRTV Huawei Video Resource Center
Network Solutions Help the Philippines Jump Ahead

9|17|14   |   2:59   |   (0) comments


In the past, the Philippines has under-invested in technology. Now, the CEO of Softshell talks about how Huawei products help the Philippines jump ahead as the economy improves.
LRTV Huawei Video Resource Center
VCS Observation for Safer Cities in the Netherlands

9|17|14   |   5:20   |   (0) comments


Holland's VCS Observation has been operating for 22 years. Its main goal is to get cities safer. CEO Wim van Deijzen tells us some of the challenges his company faces and how Huawei is helping to overcome these challenges.
LRTV Huawei Video Resource Center
A Conversation With Serbia's Ministry of Interior

9|17|14   |   4:38   |   (0) comments


At HCC 2014, the Assistant Minister of the Ministry of Interior of the Republic of Serbia talks to us about his projects and corporation with Huawei. Solutions like Safe City and E-Government and services like cloud computing are just some of the areas his department is interested in.
LRTV Huawei Video Resource Center
IHS Analyst Discusses eLTE at CCW 2014

9|10|14   |   7:09   |   (0) comments


Thomas Lynch, associate director of critical communications at IHS Technology, talks about broadband in critical communications.
LRTV Huawei Video Resource Center
TCAA on Huawei eLTE: A Broadband Solution for Mission-Critical Communications

9|10|14   |   2:29   |   (0) comments


At CCW2014 in Singapore, the TCCA's Phil Kidner talks about the importance of broadband data for critical communications.
LRTV Custom TV
Spotlight on Cisco: SDN for Optical Networks

9|8|14   |   9:27   |   (0) comments


Cisco's Greg Nehib talks OpenFlow and more on the 'Software-Defined Networking for Optical Networks' panel at the Big Telecom Event in June 2014.
LRTV Custom TV
Cisco's Evolved Programmable Network (EPN)

9|8|14   |   4:05   |   (0) comments


A look at the various demos Cisco showed at Light Reading's Big Telecom Event highlighting Cisco's EPN innovation and how SDN and NFV technologies are enabling a variety of new services.
LRTV Huawei Video Resource Center
The Future of Ultra-Broadband, With Kevin Kelly (UBBF2014)

9|5|14   |   1:13   |   (1) comment


If you think the technological changes we've seen up to now are astounding, just wait until you see what the future has in store. Discuss upcoming breakthroughs with Kevin Kelly, Founding Executive Editor of Wired Magazine, at the Huawei Ultra-Broadband Forum on September 24.
Upcoming Live Events!!
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
AT&T: We'll Bundle Fixed Wireless & DirecTV
Mari Silbey, Independent Technology Editor, 9/15/2014
New NFV Forum Focused on Interoperability
Carol Wilson, Editor-at-large, 9/16/2014
NFV & The Data Center: Top 10 Takeaways
Sarah Reedy, Senior Editor, 9/18/2014
Connecticut Cities Crowdsource Gigabit Nets
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/15/2014
Pics: LR's Women in Telecom Breakfast
Sarah Reedy, Senior Editor, 9/16/2014
Like Us on Facebook
Twitter Feed