Google fiber: Potential and Execution

Google Fiber’s Opportunity

The internet is not near the speeds that are ideal for all the activities that we do on a daily basis. Currently, we do not have the bandwidth to support large number of users

and to remain competitive with other nations.

Source: World Economic Forum

Product Overview: What is Google Fiber?

Product Overview: Differentiation

Product Overview: Availability

Market Analysis: Competitors

Market Analysis: Target Market

Source:  ITU.  INT  

Recommendation: Places to Target

Recommendation: Cites to Expand in

Appendix A Assump&ons  

popula&on  2018   339639000  popula&on  2023   345558880  

Broadband  Subscrip&ons/100  ppl  in  2018   34.5638  

Broadband  Subscrip&ons/100  ppl  in  2023   39.6583  

Average  #  Users  2018   115447320  Average  #  Users  2023   133782988.7  

Number  of  ppl/household   3  Year   2018   2023  

#  of  Households   38482439.99   44594329.56  Google's  Prices          

720/year    $27,707,356,790.41      $32,107,917,281.58    840/year    $32,325,249,588.81      $37,459,236,828.51    1440/year    $55,414,713,580.82      $64,215,834,563.17    

y  =  1.0189x  +  22.337  R²  =  0.99001  

0.00  

5.00  

10.00  

15.00  

20.00  

25.00  

30.00  

2007   2008   2009   2010   2011   2012  

USA  Market  Data  

#  ppl/100  with  Broadband  

Linear  (#  ppl/100  with  Broadband)  

Appendix A (part 2

Illustra&on  of  Google  Fiber  Cost:  (source:  gigaom.com)  Total  Target:  50,000  to  500,000  people  Transla&on  to  #  of  Homes:  2.6  ppl/household  -­‐>  20,000  to  200,000  homes  Internet  Analyst  Cost/Home:  $3,000  to  $8,000  per  home  Total  Cost  =  #homes*cost/home:  $60M  to  $1.6B      For  USA  300,000,000  ppl  115  million  homes  Overlap  of  areas,  mul&ply  by  40%  -­‐>  46  million  internet  analyst  cost/home  $3,000  ~140  Billion  (138  Billion)  

Appendix B

Seaele,  WA  

•  Applied  for  Google  Fiber  •  City  owns/co-­‐owns  100,000  poles  on  which  to  construct  network  

•  Reducing  Google’s  cost  •  Has  already  completed  the  project  to  connect  every  school  (elementary,  middle,  and  

high  school)  to  fiber,  along  with  other  public  agencies  •  Gigabit  Squared  announced  pricing  plans  for  fiber  network  Takes  advantage  of  

city’s  underused  fiber  •  Building  fiber  to  the  homes  and  fiber  to  the  businesses  in  14  neighborhoods  

•  Ellensburg,  WA  

•  Approved  a  contract  with  Canon  Construc8on  (Dec  16)  for  laying  down  a  fiber  network  

•  13  miles  of  above  and  underground  fiber  op&c  cables  for  the  city  with  a  $961,000  •  Want  to  use  a  taxpayer  money  to  build  a  public  network  

•  Will  cost  the  city  ~700  million  •  Filled  our  RPP  for  Google  Fiber  •  hep://arstechnica.com/informa&on-­‐technology/2013/12/how-­‐us-­‐internet-­‐service-­‐

might-­‐get-­‐beeer-­‐and-­‐worse-­‐in-­‐2014/  

Appendix C

•  Los  Angeles,  CA  

•  Cost  will  be  from  3-­‐5  billion  •  Will  not  be  paid  by  taxpayers,  will  be  paid  by  vendor  

•  The  plan  is  to  offer  free  Internet  access  up  to  5Mbps  and  offer  paid  &ers  up  to  a  gigabit,  and  provide  Wi-­‐Fi  in  public  areas  

•  1  billion  dollar  plan  -­‐  LA  will  be  giving  out  iPads  to  650,000  students;  providing  home  broadband  equipment  to  nonprofits  that  distribute  them  to  needy  residents  

•  Los  Angeles  has  24  distributed  data  centers  that  it  would  like  to  modernize  and  consolidate  while  boos&ng  disaster  recovery  and  replica&on,  so  the  data  center  component  alone  would  be  lucra&ve.  

•  Issued  RPP  •  San  Francisco,  CA  

•  Currently  owns  130  miles  of  fiber,  but  is  leasing  some  of  it  (primarily  to  educa&onal  and  health  care  ins&tutes)  

•  Trying  to  introduce  an  ordinance  where  installa&on  of  fiber  is  down  when  water  mains,  sewages  pipes,  etc,  are  being  repaired  underground  (‘Let’s  dig  once’)  

•  Sonic.net  applied  to  lay  fiber  to  2000  homes  

Appendix D

•  New  York,  NY  •  Gave  5  million  to  Southern  Tier  Network  (non-­‐profit  org)  to  build  miles  of  dark  

fiber  connec&ng  broome,  &oga,  and  Tompkins  coun&es  •  Google  acquired  the  third  largest  building  that  sits  on  top  of  a  trunk  of  dark  fiber  

line  •  The  point  where  the  cri&cal  Hudson  Street/Ninth  Avenue  fiber  highway  

turns  right,  before  heading  north-­‐east  toward  the  Upper  West  Side  •  Louisville,  KY  

•  File  a  request  for  informa&on  seeking  a  vendor  to  install  network  (Nov  14)  •  Offering  access  to  its  rights  of  way  such  as  alleys  and  light  poles  

•  Not  proposing  to  spend  taxpayer  dollars  on  network