I was reading this article about Google Fiber and would love to have it in Hawaii ASAP.
Google (GOOG), which has market capitalization of about $405 billion (plus $60 billion in cash, plus a derelict blimp hangar), just announced it’s expanding its fiber network rollout, which Netflix consistently clocks as
the speediest in the sector. Google Fiber claims to be 100 times faster
than the typical household broadband connection—good enough to download
an entire HD flick in half a minute.
First of all this will shatter Gamestop because the only thing slowing down digital downloads of entire games is how long it takes to download them. If that barrier is taken away (or the game streams somehow) then the physical game on DVD goes the way of the game cartridge. I agree with this assessment as well:
Some on Wall Street seem to think so. “Google Fiber is an attempt by
Google to build a profitable, stand-alone business,” Carlos Kirjner of
Bernstein Research wrote in a Wednesday research report. “It may not
make a huge difference for Google or for the incumbents in the next one,
two or three years, but Google is taking the long view and we think in
five or more years, it could turn out to be a significant, profitable
business for Google and headwind for incumbents.”
They want to have your entire digital life be dependent on Google which is a pretty good business model. They want every search to be from Google, every song played off of Google Play Music, every Office Document to be made with Google Docs, all of the your files stored on Google Drive, and have your connection to the Internet be through Google Fiber.
I have a feeling too that once Google Fiber is rolled out they will start a wireless service as well. If you think about it Google could cut out the telecom industry altogether. You could use Skype (or a Google version of it) for calls, Snapchat or Google Messenger for texts, and Google Wireless to access the Internet. That pretty much cuts out the telecoms for anything other than subsidizing the cost of phones. Why would you sign up with AT&T or Verizon for 2 years when you can connect your smart phone to the Internet at much faster speeds?
It seems that Google wants to have end to end control of your entire digital life. They just bought out Nest so that they can have your house plugged into Google as well. Your refrigerator will connect to Google Fiber to tell your Android phone that uses Google Wireless that you need to throw out that bad milk. Welcome to the Googleverse.
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