This article suggests that even though only a tiny population has benefited from Google Fiber so far, it has already had a larger effect on boosting competition from existing providers and spurring them to improve service.
Google Fiber's Ripple Effect http://www.technologyreview.com/news/514176/google-fibers-ripple-effect/ The threat of superfast Google Fiber is causing other Internet providers to crank up their own offerings. ...evidence is emerging that the company has forced broadband competitors into offering dramatically better service. New data from Akamai, which delivers a hefty portion of all Web traffic, reveals a remarkable turn of events in Kansas. In the fourth quarter of 2012, Kansas saw the largest jump in average Internet connection speeds of all U.S. states compared to the fourth quarter of 2011, with an 86 percent surge [...] ...Akamai was able to do some forensic work to see just how small Google's service footprint was, and thus just how little it took to wake up the competition. According to Belson, in the fourth quarter of last year, Google served less than a tenth of a percent of the 830,000 Internet addresses that Akamai counted in Kansas, or fewer than 830 customers. "Ultimately, we didn't see enough unique IP addresses from [Google] that those speeds would have unduly influenced the overall [speed] calculation," Belson says. [Akamai seems to be saying that there were so few Google Fiber users in their sample size, that the boost in average speed for Kansas must be due to existing ISPs improving their service. -tm] In December, Time Warner Cable increased speeds of some services in the Kansas City area, boosting its "turbo" service from 15 megabits per second to 20 megabits per second and its fastest service from 50 to 100 megabits per second. [...] Cable companies like Time Warner Cable and Comcast have the technical capacity to speed up service, and also plenty of room to lower prices, given the estimate from one analyst...that they typically make 97 percent profit margins on Internet services. [...] After Google announced plans for Austin, AT&T quickly announced it would match that effort with its own one-gigabit service, and Time Warner Cable sweetened its Internet plans with free Wi-Fi in public areas to existing customers. Now, if we could just start seeing some of the benefits in markets where there isn't a threat of Google Fiber. Wired has an article covering some of this same ground: http://www.wired.com/wiredenterprise/2013/04/google-fiber-wicked/ and adds: ...smaller companies are also trying to head off Google before the company even makes an announcement in their communities. This week, for example, the Lawrence, Kansas-based internet provider Wicked Broadband began taking pre-orders for a residential fiber internet service with speeds to rival Google Fiber's. A gigabit connection will cost $100 a month. Still, this company "is just 40 miles away from Kansas City," so the Google effect is still quite localized. And interesting that the ISP they mention is actually installing 4 fibers to each house..."The company is only using two for its service, so it will be able to lease the other two to other companies, such as Google." Hmmm...where would we be today if franchise agreements for Comcast and Verizon mandated that they install extra fibers and lease them to competitors? Meanwhile, an incumbent provider in Provo, Utah - Google's most recently announced Fiber location - is complaining that the city is treating them unfairly: http://www.dslreports.com/shownews/CenturyLink-Whines-About-Google-Fiber-in-Utah-123997 Now that Google Fiber's in town, CenturyLink suddenly has the gall to whine about fairness, and rather unsurprisingly Provo locals have absolutely no sympathy. Part of the beauty of Google Fiber is seeing anti-competitive bullies get their comeuppance after years of bribing politicians to protect their regional little uncompetitive fiefdoms. It's just a shame Google Fiber isn't in oh, about a thousand more markets. -Tom -- Tom Metro Venture Logic, Newton, MA, USA "Enterprise solutions through open source." Professional Profile: http://tmetro.venturelogic.com/ _______________________________________________ Discuss mailing list Discuss@blu.org http://lists.blu.org/mailman/listinfo/discuss
