Google Fiber: the brilliant intersection where Google and consumers both win

David Talbot, writing for the MIT Technology Review:

A Google spokeswoman says the company “expects to operate profitably” and that Google Fiber is neither a loss leader nor a PR stunt. …

The cable distribution giants like Time Warner Cable and Comcast are already making a 97 percent margin on their “almost comically profitable” Internet services, according to Craig Moffet, an analyst at the Wall Street firm Bernstein Research. As Levin points out, “If you are making that kind of margin, it’s hard to improve it.” And most Americans have no choice but to deal with their local cable company. …

Google has a good reason to experiment: its long-term corporate fortunes are closely tied to heavy Web usage. At the end of the day, more Web traffic—and more eyeballs on that traffic—means more ad revenue for Google.

Google Fiber is the only thing I can imagine that could get me to use Google TV, a Nexus device, Google Drive, or even Google+. Fiber could be Google’s iTunes/iCloud: a profitable but invisible platform that enables an exceptional experience throughout the rest of the company’s product ecosystem. Going a step deeper to the ISP level impacts the product integration and end user experience even more fundamentally.

Google has surprisingly never had a product that unites and integrates all their services together. Google Fiber is it.

Leave a comment

Your email address will not be published. Required fields are marked *