Economics of Google Fiber and what it means for U.S. broadband
gigaom.com
gigaom.com
In the past, when local governments have tried to roll out high-speed municipal internet access, they've faced bitter opposition from entrenched network providers (Comcast, Time Warner, AT&T, etc). These companies refuse to roll out fiber, but also lobby for state laws against government-funded fiber[1]. The end result is that residents are left on decrepit old copper lines.
Now there's a large[2] company rolling out fiber, and they have shown explicit desire to work with local governments. Depending on how the laws are written, it might be possible to achieve something close to a municipal network by contracting out to Google. And the Google fiber seems to be cheaper -- I can't find any municipal fiber services offering gigabit for less than $120.
(bias disclaimer: I work for Google, but am not involved at all in fiber stuff)
[1] http://arstechnica.com/tech-policy/2011/03/cable-backed-anti...
[2] Sonic.net deploys fiber, also priced at $70 a month, but they are a very small regional ISP. http://arstechnica.com/tech-policy/2011/06/1gbps-fiber-for-7...
When a community of some thousands goes up against a corporation of 10's of thousands and a largely captive customer base of millions, in e.g. lobbying the state legislature, well, the deck seems kind of stacked.
In Illinois, I recall specifically, SBC -- now AT&T -- received hundreds of millions of dollars in tax breaks and incentives, specifically with the agreement to promote and complete universal high speed access.
They then promptly set their lawyers and lobbyists to finding ways to break their side of that agreement -- while keeping the incentives, of course.
If Google wants unfettered access to unfettered customers (or eyeballs, if we're going to call the advertisers the customers... not to go there, at the moment), such partnerships might be a good way to identify and speed deployment.
And... plenty of publicity about what people in many other countries are paying. Little seems to motivate the American consumer -- and voter -- more than a bargain, or feeling they're getting ripped off.
And, since I'm typing away here, I hope Google will do it while treating their linepersons (technicians, etc.) decently. As a recent story here, with its high rating, pointed out, people are tired of seeing the line workers being abused.
I'm not familiar with sonic.net in detail, but its CEO, Dane, seems a decent sort, and I bet they're not the worst employer -- whether direct or contract. (And since Google's already talking to him, maybe you all can pick his brains in this specific area.)
Google still does some things that piss me off. [1] But I support this initiative -- I'll sign up as soon as I can, if and when -- unless Dane beats you to it.
[1] Mentioning just one item: Give it up, already, with the "true names" initiative. Anonymity has its value and place within the online domain. Not just one of convenience, but one of necessity, for many people and contexts.
P.S. I'm pretty tired, and I'm probably being to optimistic/idealistic, here. OTOH, having directly observed the crap dished out by AT&T, Comcast, and the like, I can readily believe there is plenty of room for improvement.
They just made a very fast, low latency, distributed mesh CDN that the customer pays Google for the connectivity AND electrical bill.
Gigabit to your house won't remove latency, other than perhaps to apps hosted by google (including google, obviously)
As for electricity, the cost of packaging up and sending drive units to the customer + upkeep would dwarf the costs of electricity for the total lifetime of the drives.
I don't think this really makes sense.
Having some of the mirrors you use for this be in people's homes is an interesting twist that I had not thought of.
The saving compared with putting it at a local switching office is that you don't need to buy a set of special machines and hard drives that sit at that office. Instead you're leveraging underutilized machines that people have already paid you for that are sitting at their houses.
As far as the rest of the network is concerned, the traffic doesn't need to go to them so they are happy.
Now, this could also be done in the switch closet, you are right. However, since this would have to also go through either the uplink, or every switch would need a port dedicated to a cache network/box, it would start getting expensive at switching points. Each would start looking like a mini-data (micro? nano?) center. At that point, you could just eat that cost, or say "what are alternatives that cost the same or less in capex and opex?" Perhaps with Google's network-fu, they have solved similar problems in data centers already, and said "we can use our caching/routing stuff here, and put a small capex increase each customer box, which we also need no matter what, and decrease switching point capex, and since it is a simpler network, reduce opex too".
Essentially, it is a similar problem to the one bittorrent solves, just at a different scale/locality. It also starts to look like solutions some vendors/ISPs looked into at one point for bittorrent - instead of stopping bittorrent, keep a map of local people seeing segments and reroute requests for those segments to the local network rather than across the uplink.
[1] assume a decent switch with a full mesh backplane. Also assume real switches will be used with real numbers, not my exemplary ones - the analysis will be the same, but the numbers will of course be different.
The fact that makes it work is that not all routes through Google's network are created equal.
Routes that go to and from data centers go a longer distance, through more pieces of equipment, and include busy backbones that you do not want to get overloaded. Routes that stay in a local neighborhood go a short distance and put load on one router which should be able to take it, and totally skip the critical backbone.
From the point of view of the network operator, going to a data center is slow and expensive. Keeping traffic inside a local neighborhood is fast and cheap. Thus they want as much traffic as possible to go the fast and cheap route.
CDNs cache data on local mirrors, and routes traffic to them whenever possible because that is faster and cheaper than going all the way to a data center. Every large ISP does this, and it would be shocking if Google didn't follow suit.
But actually caching data on hardware that is sitting at customer's houses is an interesting twist.
I'll admit that the line is a bit blurry.
Edit: I don't mean to dismiss your idea about the value of Google reserving some space on the disk for their own purposes. Cable & satellite operators already do that today. Technology exists for example that allows the operators to cache household-targeted TV ads on the disk. These deployments are still small scale but I think it's highly likely Google is thinking about such things as a way of monetizing their new network. If you're curious about this topic do a quick search on Google's investment in Invidi and on their partnership with Echostar.
Remember how gung-ho Google was about network neutrality, before it became necessary to choose between net neutrality and Verizon's support with Android. I find it hard to believe that Google's shareholders would appreciate the company devoting the massive amounts of capital necessary to build out a fiber network across the US, unless it was an existential question. And even then it will only be built out to the degree necessary to punish the carriers.
There is a large upfront free that customers have to pay for the installation. If the economics have been worked out correctly by Google, the customers themselves will pay almost all of the roll out costs.
Edit: I should clarify, a large upfront fee, or a reasonably large monthly fee.
Some of that will be eaten up by fixed costs of providing the service (for stuff like bandwidth, Google can probably get better prices than almost anyone else in the world, due to extensive peering), and for the provided electronics (which Google can order in huge quantities and pay comparatively little for, or even build themselves, like they do with their own internal servers and networking equipment). Whats left over is still a very large chunk of change, especially when you consider the fact that Google wont roll out fiber till a decent percentage of a neighborhood is willing to sign on (their calculated numbers are almost certainly designed to cover roll out costs)
I think this will easily pay for their roll out costs. Remember, they don't need to build out a national network to serve tons of places, they already have one. YouTube itself already uses something like 40% of the internet traffic to residential connections.
The important thing to consider here, is as far as Google is concerned, they only need to break even, they arn't in the same game the other ISPs are where it is their only profit center.
I long ago conceded the privacy vs convenience point regarding google. I've been a long time customer. I felt (read: convinced myself) then as I do now that the engineering backbone would stifle less than acceptable behavior by the company.
I live in the largest city of a northeastern us state. My options for acceptable Internet are nil. +$120/month for (possibly) 70 Mbps. Which, from experience, is heavily weighted on concurrent usage.
Everything else aside, I want so bad the option to have [insert company (google is winning the race)] to come in an offer me something better.
If nothing else, as has been stated in other threads, this will be an enormous boon for technological state of ISP's in the so far backward US.
And it will remain that way for a long time. Google doesn't serve the whole metropolitan areas they are in and there is no known plan to expand beyond the two areas they are in. Google has stated they do not want to be an ISP so no plans to expand may not just be them being quiet.
So what does this mean for existing large ISP's? Nothing. The same nothing that every little regional ISP means to them.
Does anybody know which one it is?
The AT&T deal is probably for just the odd pole where the communications approaches a building from a different path.
... to reduce the cost of the actual last mile to users’ homes it’s telling people in Kansas City that if they want to be the first to get fiber, they’ll have to convince their neighbors to sign up. The goal is to get a critical mass of between 5 percent and 25 percent of the homes in a given neighborhood (Google calls it a fiberhood) committed to signing up for Google Fiber before ever sending out technicians.
Speaking of cost-per-mile as it relates to "the last mile", population-density surely has to factor into how cost-effectively this service can be unrolled. In a densely-populated area, less fiber can serve more people, and can probably greatly reduce the cost-per-household to install.
Seems like the Midwest would require more cost for fewer households able to benefit, at least in the beginning of this endeavor. Wouldn't it make more sense to start on both / either coast, and literally reduce the "cost" of unrolling it marginally to the less-dense areas of the country, proportional to physical distance?
Snark aside: look at population densities for metro areas for midwestern cities, they are pretty much the same as most costal cities. My particular town, which is pretty standard has a density greater than a lot of bay area towns. In last-mile installations, you can't pretend that a cookie cutter neighborhood isn't a cookie-cutter neighborhood. Further, in terms of overall connectivity, Kansas City has lots of fiber going into it - the place was a major rail hub, and fiber laying in the 90s was largely along rail tracks because of nice rightaways.
[1] actually every
[2] actually every one sized big-town and small - large cities (or their metro areas)
(ok, so that was a bit of a rant, but dismissing the midwest based largely on either ignorance or disingenuous bullshit really gets on my nerves.)
To be clear, I welcome this development. I am skeptical of Google, but symmetrical 1Gb/s opens the door for actual technical solutions to the potential privacy nightmares, rather than relying on the utterly corrupt state machinery to provide anything like a remedy. All broadband providers are heavily subsidized, and while my preferred solution is pretty radically different than opening the market slightly wider for more regulated oligarchic giants, I'd rather Google get the subsidy than one of the unquestionably horrid cable/telco dinosaurs.
If I were Comcast I would really be afraid at this point, because Google now has access to top-notch set-top-box, as well as other CATV equipment know-how through Motorola Mobility's Home division. If then can incorporate that knowledge into their system they would have an end-to-end entertainment delivery system.
Almost every existing Google service is based on snooping people's browsing and serving up ads. They've made billions and billions of dollars doing it, and as the ISP they'd be able to snoop on everything. I'm sure they promise not to, but I just don't trust them, and I think there's too much money to be made for them not to do it.
http://fiber.google.com/legal/privacy.html
The Google Privacy Policy applies to all of the services offered by Google Inc. and its affiliates, including Google Fiber Internet and Google Fiber TV, which are provided by Google Fiber, Inc.
This Google Fiber Privacy Notice explains some important additional things we’d like you to know about information we collect when you visit Fiber websites or regarding use of Google Fiber TV and Google Fiber Internet (we call these together “Fiber”), and how that information is used.
Additional information we collect
To sign up for Fiber, users will be asked to provide an existing Google Account or to create a new one. You may be asked to provide additional personal information, such as billing address, service address or location, or bank account information when you sign up for Fiber.
We may also obtain and use information about our Fiber users from outside sources for marketing purposes (such as commercially available demographic, geographic, or interest information).
We may have a record of whether third party permission was required to install Fiber equipment for a Fiber user, as well as the third party’s name and contact information. In order to carry out a request to watch a pay-per-view program or other on-demand content, we may collect certain personal information, such as account or billing information and information about the product or service purchased.
During the initial provisioning or installation of Fiber services, and during any subsequent changes, updates or attempts to resolve issues you bring to our attention, we may access, and collect technical information from or about, televisions, set-top boxes, computer and network hardware and software, modems, or other systems or devices used in connection with Fiber.
How we use information we collect
The Google Privacy Policy explains how we use information we collect.
All information we collect about the use of Google Fiber TV (including use of programs and applications available through Google Fiber TV) may be associated with the Google Account being used for Google Fiber TV.
Technical information collected from the use of Google Fiber Internet for network management, security or maintenance may be associated with the Google Account you use for Fiber, but such information associated with the Google Account you use for Fiber will not be used by other Google properties without your consent. Other information from the use of Google Fiber Internet (such as URLs of websites visited or content of communications) will not be associated with the Google Account you use for Fiber, except with your consent or to meet any applicable law, regulation, legal process or enforceable governmental request.
This notice does not apply to the collection and use of information from other Google services (such as Gmail or Google Search) used while connected to Google Fiber Internet -- such information will be treated in accordance with applicable Google policies and terms of service.
Information we share
We do not share personal information with companies, organizations and individuals outside of Google except in the circumstances (such as with your consent, with domain administrators, for external processing and for legal reasons) as more fully set out in the Google Privacy Policy.
We may share non-personally identifiable information publicly and with our partners – like content providers, publishers, advertisers or connected sites.
("like Tor", but not exactly Tor since pervasive fiber from one provider would break Tor's threat model by allowing traffic analysis.)
I've never understood these arguments. Google doesn't 'snoop' on your browsing—they anonymously track your habits to give you better ads as their business model.
You used to get terrible ads on the internet—flashy popups, tricky spam ads, etc. Google has changed this, since they realized that they could avoid needing to trick people into click on ads by delivering ads that are actually relevant.
Your current ISP can 'snoop' on everything you do too. Why don't you have this odd mistrust of them?
I've worked for a small ISP. They are not nearly as competent in that regard. Most of the time, they're just hoping they can finish the day with fewer tech support tickets than they started the day with.
I trust Comcast / SBC / others less -- especially since they voluntarily opted to cooperate with the RIAA/MPAA against their users' interests (http://www.dslreports.com/shownews/ISP-Six-Strikes-Plan-Arri...) ... but I trust Google least of all, speaking just from a privacy standpoint.
I realize that it's a little irrational, especially since, as you pointed out, the information is anonymous. (We think.) However, it's not so much that I'm concerned with what Google is doing with that information now; I'm concerned with what they might do with it later. Once the data has been collected, it's impossible to ever know for certain that it's been removed. Data collected about customers will survive middle management and CEOs and entire company boards. It may be sold at any time to anyone for any reason -- or given away freely. It may be used for purposes which I am not imaginative enough to conjure up.
That probably sounds a little paranoid, but then again, when I was dialing in to eWorld in 1995, I could not have imagined that 17 years later the cable company would be my ISP and they'd be snitching on me if I downloaded unauthorized content. 17 years is not beyond the life time of current storage methods; who knows what will come next?
Finally, Google can't survive forever on advertising. I frankly expected the online advertising market to be having greater problems by now than it is. Still, AdBlock Plus is popular and I've seen a few articles recently that are tentatively suggesting that buying advertising on Facebook probably isn't worth it. Google's building some actual consumer hardware now, which is super neat, but their core competency is in data mining. I think it would be foolish to believe that if the online advertising market started to really struggle, Google would just drop the thing that they're best at and move on to something else.
So I don't think it's such a bad idea to treat Google with a little mistrust.
(But their fiber project is really damn cool.)
I didn't really say that. I said I trust them more than I trust Google.
> they anonymously track your habits to give you better ads as their business model.
That's practically the definition of snooping. Making it anonymous doesn't make it not snooping, and it doesn't make it any less uncomfortable.
Also, unless you're a Google employee, you can't say for sure the tracking is done anonymously.
> You used to get terrible ads on the internet—flashy popups, tricky spam ads, etc. Google has changed this, since they realized that they could avoid needing to trick people into click on ads by delivering ads that are actually relevant.
FWIW, I don't get any ads on the internet, and haven't for a very long time. I guess that's another reason I object to Google's data collection. I'm not seeing their ads, so there's no reason for them to collect any info about my browsing.
> Your current ISP can 'snoop' on everything you do too. Why don't you have this odd mistrust of them?
True, but my current ISP doesn't have a multi-billion dollar business based on snooping browsing habits. If they ever start I'll probably switch ISPs.
You're already being snooped by your carrier provider, including your location and the online content you access.
You're watched by CCTV cameras as you walk across city.
You're car's registration is being automatically recognized by surveillance cameras as you drive on highways or if a police car happens to drive behind you.
The list goes on and on.
Welcome to life in the 21st century.
From all of the above I find Google most trustworthy believe it or not. Do your own research but Google tries really hard to protect your privacy from both internal and external "snoopers".
Internet traffic is completely different. I expect it to stay private. There's no reason anyone should see my home browsing activity.
I don't see how this is any different with most of the ISPs monopolizing the market now.
Supporting a middle tier would cost as much as the high tier in everything except bandwidth. The one-time payment of the free tier helps pay for the infrastructure in the neighborhood, but doesn't incur any real costs after that. (I expect customer support for free will consist of a web form to report an outage, and a wiki.)
And how do you get to the web form if there's an outage? :)