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Google Fiber Is Changing Its Strategy as Costs Grow (fortune.com)
Google is taking a strategy timeout on its high-speed-internet business. According to WSJ, the Google Fiber unit is -- including Los Angeles, Chicago, and Dallas -- after its initial rollouts proved time-consuming and expensive than anticipated -- is rethinking how to deliver internet connections in about a dozen metro areas (could be paywalled; alternate source). From a Fortune report: Turns out it is very expensive to run wires -- or in Google's case, fiber optic cables -- to each and every house that wants service. Known as the "last mile" problem, the high costs, in turn, make it difficult for companies to earn a solid rate of return on the installation investment. Google's effort, through its unit called Fiber that launched in 2010, is now seeking alternative means to connect to consumers homes or finding other people to pay the cost. Google has sought deals with municipalities and power companies to pay for the connections and is also exploring less expensive wireless technology. Meanwhile, Google has suspended efforts to add new cities such as San Jose, Calif., and Portland, Ore., using its prior strategy of stringing up cables to each customerâ(TM)s home.
No planning of any kind of coordinated/mandated ditch/tunnel to each home.
Sorry but that kind of micromanagement would be a cure worse than the disease and places incredible restrictions on property design.
It's not that expensive to dig in your own house. It's expensive to outsource the problem to over paid contractors. When we broke our telephone line in the house the local telecom company wanted $12000 to run a new line (we live in an easement so our house to the street was 80m). We made a concession, if I dig a trench to the mandated 600mm depth and lay a piece of conduit for them then the repaired phone line only cost $200.
It took 2min to do a services lookup to ensure I wouldn't hit anything. The cost of hiring a trench digger was $140 for half a day. It took 2 hours to learn how to use it and dig the trench. Another 1.5hours or so for cleaning of the machine and pickup / return to the local hire shop. The conduit cost $60 for the extra heavy duty stuff.
How the heck a $200 expense + 4 hours labour turns into $11800 to this day I will never figure out, but man I need to get into the contracting business.