Google Fiber network Google Fiber not just to prove a point, will be profitable to Google

Google’s high-speed Fiber broadband service, seen by many as an experiment by the company to push for faster internet access speeds while remaining affordable, will soon begin to turn the financial tables and be profitable for Google in the long run.

Let’s have an opening line supplementing our summary in the words of Google Fiber head Milo Medin:

The company’s fiber-optic broadband network isn’t just an expensive research project but a great and profitable business for Google

Medin enlightens us as to how Google has managed to cut costs with their already expensive Fiber project, by partnering with cities that actually want to roll out such a service to its residents. Not only that, Google has been building its super-fast internet service only in select neighborhoods. Dubbed “Fiberhoods“, neighborhoods are chosen depending on its demand for high-speed fiber optic service. This is a relatively inexpensive option than trying to implement the service city wide.

Google Fiber Google Fiber not just to prove a point, will be profitable to Google

1 Gbps speed, check. High-quality uncompressed video stream, check.

According to Medin, the biggest headache in rolling out Google Fiber was integrating TV services, as it is an absolute must to attract new customers away from existing services. Enabling TV service across its network has cost Google the most, all in obtaining licenses/agreements, building its own Set Top Boxes and subsequently creating and implementing the TV network system across its Fiber network.

The one very exciting news is that Google is working on rapidly expanding its Fiber network to several new cities in the near future. No specific details were given out, but now we know how a city is chosen (to receive Google’s blessing) to receive Fiber. We expect the company to start making money despite offering such high speeds at affordable prices by attracting more customers and sticking to their method of deciding where to implement Fiber next (keeping costs down).

Source: CNET