MARCH 9, 2010

Tough Road for Google's Network
Plan to Build High-Speed Internet Faces Infrastructure Hurdles, Lack of Content

By BEN WORTHEN
Wall Street Journal

http://online.wsj.com/article/SB10001424052748703954904575109911233889350.html?mod=WSJ_Tech_LEFTTopNews


Google Inc. last month said it would provide ultrahigh-speed Internet 
connections for up to 500,000 people in the U.S. Now the search giant must 
deal with the challenging part: building the network and making sure there 
are services available to take advantage of it.

Since its ultrahigh-speed announcement last month, Google has reached out 
for advice to several communities such as Cleveland that have already 
embarked on such projects. Among other things, Google asked about the need 
to have online programs that prove the benefits of an ultrahigh-speed 
service, says Lev Gonick, chief information officer at Case Western Reserve 
University in Cleveland.

In an email Mr. Gonick received from a Google contact last month about the 
project, he recalls the company said "we have a lot to learn." Mr. Gonick 
is currently leading a Cleveland initiative that would connect 104 houses, 
several hospitals and Case Western Reserve University to a 1-gigabit per 
second ultrahigh-speed Internet service. The service, expected to go live 
this month, is about 100 times faster than the top speed available to most 
Americans.

"We know that other companies have been in this business a long time," says 
a Google spokesman. "We're not pretending to have all the answers."

Google's outreach comes as it confronts the hurdles in building its 
ultrahigh-speed Internet network and services to go along with it. The 
company plans to target a very small number of communities and says it may 
target as few as 50,000 households or as many as 500,000. But regardless, 
building such a network is a giant construction problem, with the cost 
potentially surpassing $1 billion if Google pursues the higher number, say 
people who have embarked on similar efforts.

In addition, there isn't online content designed for people with such 
high-speed Internet connections, which could make the completed network 
underwhelming.

"Beyond the cost issues and economic challenges in terms of what it takes 
to develop the infrastructure, to me one of the most significant barriers 
is that we don't have a vision of what we're missing and what 
[ultrahigh-speed Internet connections] will enable us to do," says Jim 
Baller, a Washington lawyer who is consulting with Google on the project.

Google's decision to build an ultrahigh-speed network comes amid increased 
attention to Internet access. The Federal Communications Commission is 
getting ready to unveil next week a comprehensive broadband plan that is 
expected to call for higher-speed service. And Internet-equipment maker 
Cisco Systems Inc. is expected Tuesday to announce its new technology that 
facilitates ultrahigh-speed Internet connections, although the details 
aren't clear.

In an interview in February, Google product manager Minnie Ingersoll said 
that Google will likely partner with a contractor to help build the 
network, which it will manage. The builder must first connect fiber-optic 
cable to individual homes and install special electronics that can send and 
receive data at a rate of 1-gigabit per second. Then it must connect the 
fiber from the houses to larger cables running through neighborhoods. This 
in turn connects to a larger cable ring that circles entire cities.

Putting this infrastructure in place is a time-consuming construction job 
that often requires digging up roads, says Herman Wagter, one of the 
leaders of a 1-gigabit project in Amsterdam.

A Google spokesman says it doesn't have a project price tag in mind yet and 
that it is exploring new deployment techniques that could lower costs.

A key part of Google's plan is to have cities and towns apply to be one of 
the locations that will receive the ultrahigh-speed Internet service, the 
company has said. Getting community leaders on board early should help 
Google gain the right of way to lay all the fiber-optic cable needed to 
complete the project.

But even if Google builds such a network, leaders of ultrahigh-speed 
Internet projects in other cities say they have found there often isn't a 
market demand for it. In Amsterdam, private sector companies are allowed to 
sell service on the 1-gigabit network but so far no one is offering speeds 
faster than 200 megabits per second because there isn't yet a demand for 
it, says Mr. Wagter.

Even if there was demand, there are technical reasons why a 1-gigabit 
connection wouldn't mean someone can download material on the Internet at 
that rate. Traffic on the Internet passes through several different 
networks in order to get to its destination and can only travel as fast as 
the slowest link in its chain. So someone with a gigabit connection likely 
wouldn't be able to download videos or other content appreciably faster 
than someone with a slower connection because that content will almost 
always go through slower hops along the way.

That's the case in Pulaski, Tenn., where a network capable of delivering 
1-gigabit connections is currently capped at 50 megabits. Pulaski, about 75 
miles south of Nashville, doesn't have a large enough connection to the 
rest of the Internet to make 1 gigabit to the home viable. Because of that, 
"traffic in our little town can fly around at the speed of light," but 
viewing a YouTube video isn't any faster than in other parts of the 
country, says Wes Kelley, chief executive of Pulaski Energy Systems, which 
operates the network there.

In Cleveland, Mr. Gonick is trying to get around the lack of services for 
ultrahigh-speed Internet by encouraging local organizations connected to 
the gigabit network to develop ones for other people on the network. "We've 
held a number of brainstorming sessions" trying to come up with services, 
he says. "We don't have a cookbook for it."


=================================================
George Antunes                    Voice (713) 743-3923
Associate Professor               Fax   (713) 743-3927
Political Science                    Internet: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011         

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