But ISP business is low margin, labour intensive, which is not quite congruent with Google's high margin media sales model.
Like the 4 billion dollar bidding for wireless spectrum, I suspect Google's main motivation in launching Google Fibre is merely a warning shot to ISPs to shape up... and like Verizon did by outbidding Google in the wireless spectrum but still running the network according to Google requirements, the ISPs around the world will probably make sure Google has no need to enter their market, by ensuring seamless service to Google services.
So... if things work out right, Google Fibre will never stretch beyond Kansas City.
I'm not American, and US broadband rates are eye-popping, so I agree the business is high margin as it is. But once there is serious competition, by the implied entry of Google Fibre, then the margin will shrink quite a bit.
But ISP business is low margin, labour intensive, which is not quite congruent with Google's high margin media sales model.
Like the 4 billion dollar bidding for wireless spectrum, I suspect Google's main motivation in launching Google Fibre is merely a warning shot to ISPs to shape up... and like Verizon did by outbidding Google in the wireless spectrum but still running the network according to Google requirements, the ISPs around the world will probably make sure Google has no need to enter their market, by ensuring seamless service to Google services.
So... if things work out right, Google Fibre will never stretch beyond Kansas City.