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Google Fibre might be in trouble as service becomes too expensive

Google Fibre may have started off as an experiment in the US, but it has gained quite a bit of support over the years and the gigabit internet service has slowly expanded to more cities. However, all of that fibre optic cabling and infrastructure is expensive and now, Fibre is the second most expensive part of Google, second only to the main search engine. This has reportedly prompted a change in direction for the service.

According to a report from The Information, Google Fibre isn’t doing too well in terms of its subscriber count at the moment, on top of that, it reportedly costs around $1 billion for Google Fibre to expand into new cities.

google-fiber

These high costs have led to Google co-founder and CEO of Alphabet (Google’s new parent company), Larry Page, to cut the Google Fibre team in half.

However, this doesn’t spell the end for Google’s ISP efforts, as the company recently acquired WebPass, a service that used a combination of WiFi and Fibre to deliver high-speed connections. Perhaps switching over to a mix of WiFi and Fibre will help lower the overall operating costs.

KitGuru Says: As great as Google Fibre sounds, it is quite expensive, not just for the customers, but for Google itself. It will be interesting to see how the service fares if it ends up taking more of a cheaper, WiFi hotspot route.

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9 comments

  1. Perhaps work out a deal with US isps for them to share some of the costs so that they can access the network

  2. that would never work. isp in this country have their heads firmly lodged up their own ***es and would never work with other companies on the off chance they could make more money.

  3. Lol a chance to give them competition they are not having it they are doing everything in their power to block Google Fiber so they don’t have to make an investment themselves to compete. If you are a big company why spend money if you don’t have to 🙂

  4. good job on this article reporting on another article made from ‘report’ made from sources ‘close’ to google and ‘former employees’

  5. I can easily see this report being accurate. Sadly, as I wish fiber was everywhere.

  6. William everly jr

    Maybe it would be more cost effective for Access to take advantage of the growing Fi users and offer them a fiber LTE-U adoption and then release it main stream to an ever growing Fi customer base. I for one would be an immediate adopter as I am so over the Verizon and Frontier debacle.

  7. Christ, Americans are stupid >_<

  8. Far more stupid to use the Lord’s name in vain.

    And stupid people are everywhere. Europe=stupid people, Russian? very stupid people… Middle east? full retard… Japan? Hilariously stupid, have you seen their game shows?… Brazil? Oh yeah, stupid!!!

    If I have learned anything in my hundreds of years as a vampire on this earth, is that everyone is hopelessly retarded. Myself included. The ones who claim to not be retards, are ESPECIALLY retarded.
    Even the physics professors are retard. The more of an expert in any one thing you are, the stupider you tend to be at everything else!

    But at least I love the Lord and he loves me. Atheists will never understand and perhaps my head will be on a pike someday, but that’s okay I won’t be using it anymore at that point. Get it? Point!? See I R not so retard after all! =D WHOOOO!!

    Well, off to my vidya games I go! Excelsior!

  9. Your “lord” is a fairy tale.