Google Fiber presses the pause button. Quite frankly I'm not surprised.
I think Google Fiber underestimated three things in regards to building fiber networks:
1. It is very difficult to make a business case for anyone to build a profitable network that is overbuilding an existing provider.
2. The price point of $70 for a Gig of bandwidth was not realistic. Doubly unrealistic when the existing cable company can drop pricing on a temporary basis while locking in subs to term contracts.
3. The utility company right of way and make-ready process are, to paraphrase Thomas Paine, the times that try men's souls.
An interesting fallout over this pause will be to watch how this affects Corning's stock price in the mid-term. Corning peaked about a year ago when incumbents were ordering glass left and right to fend off Google Fiber proposed builds.
No comments:
Post a Comment