Think big with a gig: Our experimental fiber network
googleblog.blogspot.com
googleblog.blogspot.com
I like companies that have no respect for established business models. In this perspective, despite its size, I think it's fair to call Google a start-up.
I'd say that it was still a net benefit not to be text only, wouldn't you agree? Ads can be annoying, but they also pay for a lot of what we're using online every day.
Are there any other companies that do this?
Note: the Wii is the only recent exception to this rule that I know of; the hardware has been sold at a profit since day one.
(Not nearly as spectacularly as Sun creating Java to spite Microsoft, and ending up commoditizing their hardware business. But I do not think Bing would look like such a good business strategy without the obsession of beating Google.)
When they release a freebie (like Chrome or Android), they force their new competitors in that market to follow their lead.
The browser's speed, instability and lack of proper standards implementations hurts them? ... so they release a super optimized browser with a clear design and with tabs running in their own process. Now Firefox, Opera and Safari (at least) will follow.
The mobile-market is too closed and becoming more so? So they release Android, a pseudo-open OS with an online-store that has more relaxed rules. And I'm pretty sure they don't need an Android-monopoly (as Microsoft is trying with everything they release) to achieve their goals.
Their strategy is not (directly) for increased lock-in (as Microsoft does) ... it's more for eliminating distribution channels / middle-men that might get in their way on reaching customers.
Proper competition is essential in every industry. If Google can provide it, good for them. This is an area where only the big players can compete, but nobody's stepped forward to fix things. Maybe this will be it.
edit: another, related chart, from a quick Google: http://www.marketingcharts.com/?attachment_id=781
I'll grant that median is likely not a good measuring point, but it is still revealing. Hell, Canada is out-doing us, so you can hardly argue it's because we're more spread out.
The nearest cable box is next to our neighbor's driveway. The phone company has fiber to their box in our other neighbor's yard.
There's enough competition to keep price inflation mostly at bay, but there clearly isn't enough to convince the ISPs to invest in the equipment that would be able to give us connections that are four times faster. Efficiency doesn't have a lot to do with it. For all practical purposes, our local ISPs aren't spending any money to improve service in areas that already have some service.
I don't buy inefficiency. They're selling it at this speed for this cost because they can, just like cell phone companies. Which from a business standpoint makes perfect sense, but it's at the cost of screwing everyone else. Since significantly better businesses / strategies clearly exist if it's just a sign of business incompetence, why haven't the successful ones, say in Japan or Korea, migrated over here and decimated the market?
PS: Despite all these talk of caps etc, upstream bandwidth is still a small chunk of a large ISP's budget.
Here on the west side of Canada, Shaw offers 100mbps connections for $150/mo. That's obviously a complete rip-off but it's nice to have the option to get gouged. They price the 25mbps connections at $100/mo presumably to make it seem economical to get 100mbps.
http://www.shaw.ca/en-ca/ProductsServices/Internet/Nitro/
Telus has 25mbps as well now. Fttn and capable of serving 100mbps according to a Telus technician I spoke with, so I'm sure they'll up the speeds at some point.
Nice to see competition that isn't just offering us "gifts" ... for signing 3 year contracts.
Apparently it's down to ~$1,000 if you assume 100% take rate and don't attempt to serve rural areas, but it will easily exceed $2,000 in realistic deployments.
In Utah if you're willing to pay for your fiber upfront it's only $3,000. And then you still have to pay the monthly fee for Internet access on top of that. http://www.app-rising.com/2009/11/utopia_proving_new_option_...
Is it selling at a loss if I pay someone $100k to write software and then sell it for $15/pop?
Google could profit at rates that would be "below cost" for other ISPs.
PDF: http://www.pewinternet.org/~/media/Files/Reports/2009/Home-B...
it's all politics.
For most companies a new Exchange cluster backed by RAID SCSI disks and a backup system upgrade isn't a trivial cost.
Edit: yes, Google did it cheaper, but that's not because IT people were lying, misleading or dismissing - it really is expensive to do 'properly'.
The guys who got it off the ground set up www.cybermoor.org and are encouraging similar grass roots development for other remote areas. I like that.
[1:http://www.cybermoor.org/index.php?option=com_mtree&task...]
It's arguably far more important to get good internet access to rural areas than to inner cities. If you're in Central London or Manchester, you can quite easily shop, meet others in your field of work, network, be entertained without touching a computer if you don't want to.
Meanwhile in remote areas, it's not so easy to pop out and do these things and the internet has been a huge leap forward - but we're being held-back by spotty, slow, distinctly iffy internet connections that just aren't capable of sustaining meaningful economic activity. The advent of the internet is a huge chance to revive rural communities which have been in decline for years now.
But while BT, Google and other companies concentrate their high-speed efforts exclusively on profitable inner-city areas which already have a plethora of other options, we're in serious danger of leaving "forgotten" rural areas behind. I have friends on a Scottish island which currently only has 512kbps on its exchange...
Did you hear that? It sounded as if millions of hollywood executives suddenly cried out in terror and were suddenly silenced...
If the content can be distributed AND billed effectively over this pipe, then it's fine. If the content can NOT be billed appropriately, it simply won't be licensed for this distribution channel.
The ability to download a full HD movie in <5 minutes opens up a treasure trove of revenue possibilities. It makes content delivery much more convenient and thus much more compelling for customers.
[1] Stats from Wikipedia, summing Norway + Sweden + Denmark area and most recent population vs. United States.
http://en.wikipedia.org/wiki/List_of_countries_and_dependenc...
I think it has more to do with that we don't leave infrastructure development squarely in the hands of the market.
I realize that. The multipliers I gave necessarily imply exactly that: 15x pop. and 10x area => U.S. has 1.5x the population density.
More saliently, the justification most often trotted out when US consumers complain about being so ill-served by broadband providers is the higher population density in Japan and South Korea.
In Sweden, government policy and government subsidies have ensured widespread broadband coverage, not just in major cities, but in large but sparsely populated areas as well. This is true for both internet infrastructure as well as mobile networks. It hasn't been squarely up to the market to decide which areas deserve high capacity broadband and mobile infrastructure.
I remember back in 2001 when I traveled to the most northern part of the country to teach programming; Kiruna — the world's second biggest city by area, population 19,000 — had wi-fi network connectivity over the entire downtown area (which admittedly wasn't as large as it may sound). This was not due to the power of the open market.
In Sweden there is no such thing as lack of cellphone connectivity. Calls suddenly disconnecting does not happen. The only reason I even know of these phenomena is because I've heard Americans speak of it. And, finally, service is cheap, dirt cheap, by US standards.
On the other note, I do hope that Hollywood would embrace this as an opportunity not as a problem.
However, if anything in this life is certain, if history has taught us anything, it is that you can expect big media to cling to the old ways of doing business for as long as they can...
The hard drive certainly quickly becomes an OS-managed cache though like ram is for hard drives now though.
I am in NY and I am waiting for years for fios in my area. Hopefully this adoption will move faster than FIOS.
In general, the more built up a place is, the more vested interests there are, and the more they are able to manipulate the legislative process.
Google moves at Internet speed.
Out in the "real world", it's still illegal to sell cars and wine over the Internet, because the local car and liquor distributors have gotten their preferences written into the law.
You may find that Google can't go the last 20 feet to your house without buying off a few hundred interest groups, politicians, and unions.
In many other parts of the country it's mostly digging through dirt and in when you're in a neighborhood using a water jet to tunnel under driveways. Piece of cake.
If Google admits they're going to deliver advanced Google Voice or YouTube services over these lines, that's infringing on these agreements and the towns face lawsuits from the legacy carriers.
You can't just hop on poles and start stringing wires all over the place.
Or downloading a high-definition, full-length feature film in less than five minutes. Or collaborating with classmates around the world while watching live 3-D video of university lecture.
Now look at how Geneva, Illinois fought off AT&T U-Verse (called "Project Lightspeed" in the experimental phase) because they already had television franchise agreements in place and didn't want to get sued by the cable company:
http://www.geneva.il.us/att/Lightspeed.htm
(Note, also, that Geneva tried to set up their own broadband network and was roadblocked by AT&T. Karma is a bitch.)
I'm not suggesting that Google is looking to offer cable TV. I'm just implying that you can't waltz into a town and offer these kinds of services without raising the hackles of the existing companies that are providing utility services in most typical towns.
A town might willingly invite Google with open arms, but that doesn't mean it's a done deal by a long shot. Expect lawsuits.
Most infections seem to result from an automatically created subject line in English... I'm sure there are viruses created specifically in other languages, but are they as successful?
The maximum you can get on a residental connection in the UK is around 2mb.
Today I have 12/4 mbit DSL, and I pay less than $20. I don't need more bandwidth, but if I did I could get a lot more than I could use for less than $50 a month.
How do you form an underground internet that bypasses the big players?
They are late comers in search, gmail and Browser, but their success has been smashing thanks to superior products. You have to give them that.
Bonus points for doing this in a recession when traditional companies are running for the hills and laying off people left and right. Google continues to innovate and crush competition in multiple industries. I have no doubt that if they want to become an ISP or even pretend to become one to force traditional ISP's to innovate then good for them and better for us.
I watched Verizon install FiOS around my city several years back and it was all quite efficient. Contracting firms dug the ditches, another firm put the cables down while the digging crew came back behind and filled in the trench. It was amazing how quickly they could hook up a neighborhood.
I'm sure they're going to be considering all of these, but short of keeping my fingers crossed and filling out an application I hope some part of Austin, TX gets on the map.
Also , does anybody know mass market applications that require more then 10mbit up/10mbit down?
At 7PM, I'm lucky to get 512kbps.
Also, multiviewpoint live video feeds, full-size catalog photos for e-commerce (full 12-megapixel photos of the actual product so you can zoom in close enough to see the stitches.).
All this and more.
I'm confused. Won't Google be the sole service provider of its own network?
That doesn't account for any network overhead and assumes the storage medium can write > 125MiB/s (Pretty much discounting all standard platter drives)
The 5-10 minute figure is reasonable.
(addendum: whoa, my tail's on fire!!)
Google Phone, Email, ISP, Website, Checkout, Calendar, Docs, Search, Stats, your DNA .....
People are making a stink about Comcast buying NBC, but Google seems to get away with much more and people cheer. If the argument is "sure, but they make great products", that doesn't cut it for me.
Besides. Given the yc crowd and their response to monopolistic habits, I'd be willing to bet that something like 90% or more had the same thought. So you can argue that it's not even inspiring.
"It's a trap!" ~Admiral Ackbar
There seems to be a lot to look forward to. Say, the INCREDIBLE 1 GIGABIT/SEC SPEED AHAHAHAHAAYES