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Cable Better Keep an Eye on Google

Last week LightReading offered a sneak peak into Google's Internet backbone network aspirations. (See 'Google's Own Private Internet' at http://www.lightreading.com/document.asp?doc_id=80968) The takeaway is that Google is 'acquiring hundreds of thousands of square feet of carrier hotel space that could host giant server farms, buying up fiber, and issuing large RFPs for DWDM and Ethernet-based telecom equipment that could total in the hundreds of millions of dollars.' Essentially, Google appears to be building its own high-powered optical IP core network to directly peer with the world's largest telecom providers. This would enable Google to drastically reduce its telecom costs and peering fees, but more importantly, Google could create the world's most powerful Internet content distribution network, guaranteeing quality and security for a variety of media applications. Some related developments at Google in September. On September 8, Google hired IP networking guru Vint Cerf to 'help Google build network infrastructure, architectures, systems, and standards for the next generation of Internet applications.' On September 14, Google raised another $4.18 billion in its follow-on stock offering. Now that's a war chest. And this week, Google made its first major foray into video distribution, offering an on-demand Internet streamcast of the premiere of Chris Rock's new comedy show on UPN "Everybody Hates Chris." The move is aimed at helping the search giant demo and test its new Google Video service, which is still in beta. Cable MSOs better keep an eye on these guys.
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