Alphabet subsidiary Google Fiber, which has reduced staff and signaled a switch to a hybrid fiber/wireless network strategy, is a “dead business model walking,” according to Scott Cleland, president of consultancy Precursor and former Deputy U.S. Coordinator for Communications and Information Policy for President George H.W. Bush.
In a new blog post, Cleland asserts that while Google Fiber didn’t live up to all the hype associated with its 2010 launch, the company has served to further competition in the high-speed consumer internet market.
“While I believe Google ‘Fiber’ is a dead business model walking,” Cleland wrote, “I do not believe Alphabet Access using Wi-Fi and unlicensed spectrum is a dead business model over time. … Don’t be surprised if Google ultimately decides to sell some of its gigabit Google fiber plant and customers to exit that high/long-term-cost segment like it sold Motorola after it badly underperformed expectations.”
Cleland also forecasts a shift in marketing away from an emphasis on the fiber aspect. To that point, Google closed its acquisition of Webpass earlier this month. Webpass provides business and residential internet service in San Francisco, Oakland and San Diego, California, as well as Miami, Chicago and Boston. For its residential connections, Webpass uses Ethernet, although the company has fiber-to-the-home service in San Francisco, with expansions ongoing in its California markets.
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In a blog post, Google Fiber President Dennis Kish wrote: “At Google Fiber we’re particularly excited about Webpass’ application of point-to-point wireless deployment methodology. As we’ve said, our strategy going forward will be a hybrid approach with wireless playing an integral part. Webpass has proven that point-to-point wireless is a reliable way to connect more people to high-speed internet in a densely populated environment, by setting up wireless transmission links between buildings.”
On the upside, Cleland wrote that Google Fiber played a role in making gigabit internet available to around 5% of U.S. households, and is partly responsible for increasing internet service provider competition resulting in approximately 90% of U.S. homes having access to 25 megabits per second broadband.
“So in a different and unintended way Google proved very successful overall,” Cleland wrote, “because Google Fiber lived up to its name as a powerful regulatory laxative to the constipated state of municipal regulation of communications infrastructure.”
Google Fiber is currently available in eight cities.