Examining the prospects for Gigabit Broadband: Lessons learned from Google Fiber

David P. Reed

Telecommunications Policy, 2020, vol. 44, issue 5

Abstract: This study examines possible lessons learned from the deployment of residential Gigabit networks based upon the novel approach taken by the Google Fiber project started in 2010. Even though Google Fiber paused any project expansion in 2016, calling into question the viability of their business model, the approach taken by Google Fiber elicits further research interest given four major innovations that this analysis identifies in its fiber-to-the-home business model. Based on a “top-down” financial model to estimate the costs of fiber deployment, this analysis shows that these four innovations pursued by Google Fiber, and now adopted on a widespread basis by other broadband providers, lower the costs of building residential Gigabit networks, and therefore can improve the prospects for new entry of service providers of residential broadband services. With technology advances pointing to further cost reductions in the cost of Gigabit networks, this analysis elevates the need for more detailed study of ongoing changes in the cost structure of local access networks to better anticipate future prospects for broadband competition.

Keywords: Gigabit broadband; Broadband strategy; Fiber network costs; Municipal broadband; Google fiber; Network economics (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1016/j.telpol.2020.101957

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