Google "pauses" plans to roll out Fiber internet service to any new cities

By Jos ยท 10 replies
Oct 26, 2016
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  1. Alphabet is dramatically cutting back on its plans to expand its Fiber internet service nationwide. The company is laying off or reassigning about nine percent of its staff as well as "pausing" or ending fiber operations "potential Fiber cities" where it hadn't yet fully committed to building. Fiber will continue operations in markets where it already has a footprint.

    Craig Barratt, CEO of Alphabet's Access division running Google Fiber, will step down from his post and remain only as an adviser. In a blog post announcing his departure, Barrat noted that Fiber’s business is solid, with its subscriber base and revenue are growing quickly, and more of that growth in the horizon — they’re just shifting strategy.

    While the former CEO didn’t go into details about the future of Fiber, it’s no secret that the company has been rethinking how it delivers speedy broadband access, as rolling out a fiber network is a costly endeavor. Over the past year or so, Access has increasingly turned its sights to wireless technology as cost-effective alternative to delivering high speed Internet access to users, particularly with the acquisition of Webpass back in June.

    Google Fiber is one of the units that make up Alphabet’s “other bets”, which are businesses outside Google’s core web search and internet services business. The unit reported revenue of $185 million in the second quarter of this year and an operating loss of $859 million, and as much as $280M of this was capital expenditure on Fiber.

    Alphabet has not disclosed the number of Google Fiber subscribers in cities where the service is available. A report from The Information claims that the initial goal was to sign up five million subscribers in five years, but by the end of 2014 it had only signed up around 200,000 broadband subscribers, well short of expectations.

    Google Fiber costs $70 a month for the fastest 1Gbps Internet connection or $130 a month when bundled with its TV service. It is currently available in Atlanta, Georgia; Austin, Texas; Charlotte, North Carolina; Kansas City in Missouri and Kansas; Nashville, Tennessee; Provo, Utah; Salt Lake City, Utah; and The Triangle in North Carolina.

    Google Fiber is still committed to building in Huntsville, Alabama; Irvine, California; San Antonio, Texas; and Louisville, Kentucky.

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  2. ikesmasher

    ikesmasher TS Evangelist Posts: 3,000   +1,319

  3. OutlawCecil

    OutlawCecil TS Maniac Posts: 269   +141

    Must... leave... Comcast...
    Levi Sterling likes this.
  4. amstech

    amstech IT Overlord Posts: 1,936   +1,101

    Please come to upstate NY. PPPPLLLLEEEAASSSEEEE.
    wiyosaya likes this.
  5. cldmstrsn

    cldmstrsn TS Addict Posts: 141   +90

    Thank Jebits! I read this and luckily Salt Lake wasnt on there. Been waiting years. My friend already has it and man am I jealous, its way faster than you think it is.
    SantistaUSA likes this.
  6. Uncle Al

    Uncle Al TS Evangelist Posts: 3,346   +1,987

    In Nashville Google is talking seriously of pulling out of that market because the city/state/fed has given other companies the right to prevent Google from hanging their wire on certain poles. Yep, according to the law, the first person to use the pole (usually AT&T) technically "owns" the pole so they control how it's used. Why on earth each municipality didn't write into law that those poles are added and maintained by the service but remain the property of the municipality is beyond me. Just another example of local governments missing the boat and we all have to pay!
    Levi Sterling and cldmstrsn like this.
  7. Camikazi

    Camikazi TS Evangelist Posts: 925   +284

    It can't be easy fighting all the government sponsored monopoly companies to try to even get a chance at growing this service. This was a tough thing to do from the start and the second they proved to be useful I knew the big companies would start fighting it even more to stop Google.
  8. SantistaUSA

    SantistaUSA TS Booster Posts: 94   +22

    I'm very fortunate to have Google Fiber, it is amazing how fast things download and upload, even their 5 Mbps connection is reliable and speedy (loading websites, Netflix etc). I hope the can grow more and be available in more areas.
    Levi Sterling likes this.
  9. Slappy McPhee

    Slappy McPhee TS Enthusiast Posts: 59   +20

    This doesn't bode well for the folks hoping for future expansion especially if AT&T gets their way and swallows Spectrum, formerly TWC. I could have sworn there was discussion about expansion in the DFW area.......
    Levi Sterling likes this.
  10. Levi Sterling

    Levi Sterling TS Booster Posts: 80   +26

    I have been considering moving upstate for this, and now I may have to
  11. Chazz

    Chazz TS Evangelist Posts: 679   +75

    Spectrum is owned by Charter, They bought out Time Warner Cable and it's the reason it's called Spectrum now. ATT is buying Time Warner the entertainment division. IE. HBO, Time inc, TBS, Warner Bros., CNN and more.

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