Google's decision to offer a gigabit high speed network trial in selected communities (http://www.google.com/appserve/fiberrfi/public/overview) represents another step in the companies evolution from an internet ad company to a network operator. Except the goal of this network is to disrupt the incumbent broadband model which has been passed by the rest of the world (the US currently ranks 28th in broadband speed with an average speed of 3.9Mpbs with S. Korea in 1st at 14.6 Mbs on average). In addition to just increase fixed line broadband speeds, Google may be laying the foundation for a high-speed backhaul network to support 4G wireless roll-outs. Especially given the backhaul costs represent roughly 40% of the network expense and there will be huge pressures to offload as much data from the wireless network as possible through UMA/WiFi or femtocell access points. If Google is able to control the major trunks and the end-points (with Android devices like Nexus One), then they will put themselves in position to connect and analyze all data connections. If they can extract value for this, then the connections could become free, sending the current carrier model into a death spiral. Today, the Community Fiber project is just for social benefit and experimentation. But the future possibilities are very interesting.
Google building the 4G backbone?
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Google building the 4G backbone? TrackBack URL : http://blog.tmcnet.com/mt/mt-tb.cgi/42155
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