[ NNSquad ] Google Plans to Build Ultra High-Speed Broadband Networks -- my own analysis

There’s a big difference between this and other “broadband” efforts in that it doesn’t put communities in hock to pay for it – Google is taking the risk (at least as I understand it). That alone makes it extraordinarily positive. Unlike today’s carriers Google is not threatened by the Internet – just the opposite.

That said it is interesting that Google seems to be focusing on speed rather than availability. One would think that increased availability would be far more important to Google than faster access just when you are at home. But we have to remember that Google is a “Web” company and not an “Internet” company. Thus it makes sense to support Wi-Fi access at airports where you are required to have a browser.

If Google goes to the next step and add Wi-Fi along the path and make it available as at airports things become very interesting. Even better if all Androids are programmed to use the IP interchangeably with the cellular towers. Telcos can kiss their assets good bye.

Cable Cos would be in a different position because they are in the content business. If I were Comcast I would applaud this move because it means that XFinity is not burdened with the cost of their own backbone. But if Comcast walks away from its own infrastructure what happens to the value of others’ infrastructure. The smartest move would be for Comcast to either ask Google to take over their infrastructure or donate them to local communities as infrastructure. This would reduce the value of the competitors’ infrastructure to liabilities.

As long as Google has very deep pockets it can afford to give away capacity betting that they will get the most benefit from providing connectivity. This is similar to the approach I took for Microsoft and home networks. But home networks don’t cost Microsoft anything – providing connectivity does have some costs though they are minimal. Once Google establishes the idea that we can assume availability we not need their benevolence because communities will have a model for shifting from networking services to maintaining local facilities to support networking.

There is some risk communities would put themselves in hock imitating the broadband business models. There is also a risk in that Google isn’t in the infrastructure business. If they require a subscription/advertising model we may find ourselves with “web” but not “Internet”.

If they can avoid the “terms of services” screens then we start to have availability for all sorts of applications and that can be exciting and shift the paradigm to connectivity rather than networking as a service.