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Verizon's costs to deploy FiOS, which is the same underlying tech as Google Fiber, between 2004 and 2010 in some MSA's approached a billion in capital alone. Th

Verizon's costs to deploy FiOS, which is the same underlying tech as Google Fiber, between 2004 and 2010 in some MSA's approached a billion in capital alone. They ended up spending $23 billion in total capital, and only in places where they already had data centers every few miles, conduit, fiber, poles, field cabinets, franchise agreements, a local workforce, a large customer base, storefronts, etc. And that only includes new equipment and construction, not recurring operational costs. $23 billion is more than Google's entire capital budget for the past 2.5 years. This is almost certainly the result of somebody at Google finally asking serious questions about the total cost, or at least being asked to cut a particularly large check for the first time.

wmf 10y ago
I am also skeptical of Google Fiber's economics, but they have some business model hacks up their sleeve that FIOS doesn't: redlining and rallies. FIOS spent a lot of money to pass homes that will never subscribe and they had to do a lot of separate truck rolls to connect customers over time. Google Fiber is more like Kickstarter where they don't have to do any work unless the 'hood is guaranteed to be profitable, then they wire the whole place at once. Whether this business model is good for society is an open question.
- darkmarmot 10y ago
  Here in Nashville, the are rolling out access to only the richest communities first. But -- they are also about to wire some poor, subsidized Section 8 housing as well. It appears those of us in typical suburbia are likely last on the list, if we are on the list, for better or worse...
  - Cshelton 10y ago
    Hah. Well in Dallas, AT&T rolls out their fastest Gigabit speed (and most expensive offering) to the poor communities first. Because city council and politics. Makes sense.... the poor people, right after shopping with their food stamps and using their entire paycheck on rent can most definitely afford $130+/month internet...
    - deleted 10y ago
      [deleted]

wmf 10y ago

I am also skeptical of Google Fiber's economics, but they have some business model hacks up their sleeve that FIOS doesn't: redlining and rallies. FIOS spent a lot of money to pass homes that will never subscribe and they had to do a lot of separate truck rolls to connect customers over time. Google Fiber is more like Kickstarter where they don't have to do any work unless the 'hood is guaranteed to be profitable, then they wire the whole place at once. Whether this business model is good for society is an open question.

darkmarmot 10y ago
Here in Nashville, the are rolling out access to only the richest communities first. But -- they are also about to wire some poor, subsidized Section 8 housing as well. It appears those of us in typical suburbia are likely last on the list, if we are on the list, for better or worse...
- Cshelton 10y ago
  Hah. Well in Dallas, AT&T rolls out their fastest Gigabit speed (and most expensive offering) to the poor communities first. Because city council and politics. Makes sense.... the poor people, right after shopping with their food stamps and using their entire paycheck on rent can most definitely afford $130+/month internet...
  - deleted 10y ago
    [deleted]