Google's fiber network could expand nationwide for... $140 billion

Many have speculated whether Google plans to expand its ultra-fast fiber network beyond Kansas City. A recent report in Business Insider cites a report from Goldman Sachs that estimates the capital cost of building such a network throughout the country.

According to the Goldman Sachs analyst, the cost of a nationwide fiber-to-the-home build is $140 billion. And so  "...if Google devoted 25% of its $4.5bn annual capex to this project, it could equip 830K homes per year, or 0.7% of US households. As such, even a 50 mn household build-out, which would represent less than half of all US homes, could cost as much as $70bn." Or more than $140 billion for the entire country.

The Goldman report notes that "Verizon has spent roughly $15bn to date building out its FiOS fiber network covering an area of approximately 17mn homes." And that company, as we've reported, decided to cross-market with existing cable companies rather than try to complete a fiber network in its footprint, leaving major cities like Boston, Baltimore, and Buffalo behind.

So, Google's cool, but at the moment only if you live in Kansas City.

How Much It Would Cost Google To Become A National Cable Company Like Comcast (Business Insider, Dec. 7, 2012)