Will Google Fiber dominate the
cable Internet market?
New revolutionary device from Internet search engine
giant hasn't companies scared - yetGoogle Fiber is a lightning-fast fiber-optic Internet
service that may give major Internet cable companies headaches. So far limited
to the greater Kansas City area, Google Fiber has yet to make a major
impression. However - with Austin, Texas next in line, chances are good that
Google could build an entirely new source of revenue and turn the Internet
industry upside down.تكبير الصورةتصغير الصورة معاينة الأبعاد الأصلية.
Google Fiber has yet to make a major impression. However -
with Austin, Texas next in line, chances are good that Google could build an
entirely new source of revenue and turn the Internet industry upside
down.LOS ANGELES, CA (Catholic Online):
Fiber's arrival in Austin was supposed
to be a closely guarded secret. It came to light after a local news outlet
leaked the story a week ago that Google Fiber was going to be the subject of the
joint press conference with Google and Austin Mayor Lee
Austin appears to be a good fit for Fiber, since it's widely
viewed as a domestic hotbed of IT. Beginning in mid-2014, local residents will
be able to choose Internet service for $70 a month, or $120 a month with Fiber
INTERNET service, at connection speeds 100 times faster than cable, according to
The service is also expanding to Olathe, Kansas. While many
exerts don't believe Google intends to take over the Internet connectivity
market, Google CFO Patrick Pichette said "We really think that we should be
making business -- a good business -- with this opportunity [Fiber], and we're
going to continue to look at the possibility of expanding."
and Google shareholders should like the sound of that; more revenue streams mean
less reliance on Internet advertising.
Cable Internet providers have not
shown much concern as of yet. However, as Tim Bruger with The Motley Fool Web
site points out, "My cable provider, Comcast, recently offered to crank up my
Internet connectivity speed at no charge. That's right -- a cable company opted
to improve service without charging. Interesting."
Bruger also says that
"phone companies such as AT&T and Verizon began losing customers to these
and other cable Internet providers some time ago, largely because of speed and
connectivity issues. And now along comes Google Fiber with an alternative that
blows the doors off anything Comcast, Time Warner, or Charter can offer, and
often for the same or less money. If the cable industry isn't worried, it should
Google at the moment appears to be downplaying Fiber, at least in
terms of how quickly it's chosen to roll the service out to mainstream America.
As other Internet cable companies can attest, the opportunity for Google Fiber
to become a significant source of alternative revenue can't be denied. Google
certainly has the wherewithal to invest in Fiber for the long haul, with more
than $48 billion in cash and equivalents, and operating cash flow that's off the
"Fiber is going to change the way we connect to the Internet, and
it's yet another example of why Google is close to an ideal growth stock. If
it's not already, Google should be on your short list of investment options,"