Monday, December 10, 2012

Nationwide Google Fiber service could cost $140 billion to build out

Google Entertainment System

If you've been drooling over the thought of having Google Fiber service where you live, you're surely not alone. Since Google official rolled out the service to residents of Kansas City, people have been speculating as to when (or if) Google would ever continue to expand the service to other locations. According to new estimates by Goldman Sachs, it would cost Google a huge amount of money -- about $140 billion -- to roll out the service across the country.

That sounds impossibly expensive simply based on the amount of money Google has to spend, but let's consider something a bit more realistic instead. Even if it had the cash up-front, a company like Google doesn't have unlimited time and resources to roll out a nationwide network at once. If it were to begin offering Google Fiber service in other cities, it would surely be a staggered rollout. While it may not be able to afford a nationwide rollout, offering the service in a few more major metropolitan areas would be a great start.

Let's also remember that Google Fiber is actually a profitable business unit for the company. Unlike many products that Google "sells," new Fiber markets would be directly profitable as they launched. Income from new subscribers could be put right back into bringing the service to new areas. Now no one knows what Google's intentions are with its Google Fiber service, but we'd be surprised if the success of the Kansas City launch didn't compel it to look at more cities.

Source: BGR; Business Insider



Source: http://feedproxy.google.com/~r/androidcentral/~3/rKO42jmq7mY/story01.htm

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