Google Fiber Pauses Operations, CEO Leaves, and About 9 Percent of Staff Is Being Let Go (bloomberg.com)

The future of Google Fiber has been shaky ever since Google's parent company, Alphabet, was founded. The original plan was to expand Fiber's blazing fast internet service to more than 20 cities, with the goal of eventually delivering nationwide gigabit service. However, Alphabet hit the reset button on those plans Tuesday. Not only is Google Fiber CEO Craig Barratt leaving, but about 9 percent of staff is being let go. That translates to about 130 job losses, since the business has about 1,500 employees. Bloomberg reports: Barratt wrote in a blog post that the company is pulling back fiber-to-the-home service from eight different cities where it had announced plans. Those include major metropolitan areas such as Dallas, Los Angeles and Phoenix. Moving into big cities was a contentious point inside Google Fiber, according to one former executive. Leaders like Barratt and Dennis Kish, who runs Google Fiber day-to-day, pushed for the big expansion. Others pushed back because of the prohibitive cost of digging up streets to lay fiber-optic cables across some of America's busiest cities. "I suspect the sheer economics of broad scale access deployments finally became too much for them," said Jan Dawson, an analyst with Jackdaw Research. "Ultimately, most of the reasons Google got into this in the first place have either been achieved or been demonstrated to be unrealistic."

Comments

This is too bad.

[aussersterne]

I live in a GF area and love it. There are three tiers, 5 Mbps for $0 (yes, free broadband), 100 Mbps for $70, and 1 Gbps for $90. They have been absolutely bulletproof, the speeds are for real when tested, and the online system and the way that it integrates with their WiFi router is awesome.

I have had multiple providers over the years, including Comcast and Verizon, and Google Fiber's product and service are easily better than the others.

If Google can't make this work, there may be no hope for anything better for a long time to come. I just hope I don't lose it here!

Re:This is Unfortunate

[guises]

Well it may be true that no one can feasibly lay cable in a fiscally competitive way, but that isn't the only way to achieve a competitive marketplace. Redundant cable is really a pretty stupid way to do that - we could always just do what most countries do and implement unbundling access rules. In fact we have those rules on the books already, they were part of the telecommunications act of 1996, they just couldn't be exercised because of the FCC's stupid "third way" decision to classify ISPs as something other than telecommunications services. Now that they've reversed that decision, and once all of the lawsuits regarding that have been resolved, maybe we'll be able to have some competition among ISPs.

Re:hand mirrors and morse code

[guruevi]

It's pretty hard. I only have experience with a metropolitan area network but I suppose home fiber will have a similar cost. For a ~1 mile stretch consider the following:

a) You have to engineer the way the cables will go where they will terminate, what equipment you'll be using, where you'll be tapping off (fiber to each house or to a central unit).
b) You have to survey for existing cabling and make sure your installation doesn't encroach upon private property. This could be as easy as dialing a number and getting some plans or as expensive as having a ground radar and doing land surveys.
c) You usually have to notify and have permits for digging up. Sometimes the city will take it upon themselves, other times you have to do it. Cost of permits and notices to 100 houses
d) Install tubing, lay cables, 8 people, a backhoe and a dump truck will take a good week or two if all the surveys have been done correctly. Off course if you manage to hit a thing with the backhoe, you could be delayed for a day or two. You still have to pay the construction workers.
e) Fill the holes and repair side walks, lawns and streets you have broken open. Again, 4-6 people with equipment will take about a week doing that.
f) Fielding complaints, law suits, talking to locals why you didn't re-plant their lawn Kentucky Blue Grass etc

And then we haven't talked yet about material cost of lines, piping etc. Our estimates average about $500k/mile with a mix of overhead and underground cabling which isn't expensive since you can easily service 200 houses on a mile stretch. Underground is about 5 times as expensive as overhead. Obviously most of these costs are eventually fully funded by the tax payer (operators pretty much get paid for laying Internet lines) but it's a huge upfront cost and a player like Google won't benefit from grants since it's not really a local political player.

Last week we had a backhoe operator hit a line twice, the second time he literally ran off and went missing for 3 hours without notifying anyone. Obviously he doesn't work there anymore but it caused a delay of 2 days between fixing the line and finding a new licensed operator and bringing them on site.