Google Fiber -- there’s not much “there” there

It appears Google Fiber is pulling the plug on its fiber expansion. Yes, 1,300 cities competed to get Google Fiber to come to their city, but despite all the hoopla, it now looks like Google is pulling back from its fiber plans. Google has discovered what network operators and telecom workers have known all along -- building and maintaining fiber networks, hiring skilled workers, and serving customers is an expensive and complicated proposition.

An online source, The Information, reports that Google is cutting the Google Fiber staff staff by half, from 1,000 to just 500. And despite all the fanfare, it appears that Google has signed up only 200,000 subscribers.

Earlier this month, the Wall Street Journal reported that Google is “rethinking its high-speed internet business after initial rollouts proved more expensive and time consuming than anticipated, a stark contrast to the fanfare that greeted its launch six years ago.”

Google hit the pause button in San Jose, CA and Portland, OR. Other prospective cities are likely on hold as well.  

There have been plenty of signs that the hype surrounding Google Fiber far outpaced on-the-ground results. A MoffettNathanson report in March 2016 found that Google Fiber had just 53,000 pay-TV subscribers. Industry analyst Roger Entner said in April that Google Fiber was present in just four markets with less than 100,000 customers.

Google now says it’s looking at fixed wireless to get into the broadband business. The plans are in the early phases, but one has to wonder whether this venture is as inflated as some of Google’s other broadband projects.

Links:

Google’s High-Speed Web Plans Hit Snags (Wall Street Journal, Aug. 15, 2016)

Google Fiber pulls the plug on Portland (nwLaborPress.org, Aug. 29, 2016)

Google Fiber is pulling back on its broadband rollout as pressure grows to cut costs (ReCode, Aug. 25, 2016)

Inside the Battle Over Google Fiber (The Information, Aug. 25, 2016)

Google's fiber buildout: "more bark than bite" (Speed Matters, Apr. 26, 2016)

Google prepares to launch broadband balloons - a loony idea? (Speed Matters, Apr. 21, 2016)