Download - TCG Case Study
Google Fiber’s Opportunity
The internet is not near the speeds that are ideal for all the activities that we do on a daily basis. Currently, we do not have the bandwidth to support large number of users
and to remain competitive with other nations.
Source: World Economic Forum
Appendix A Assump&ons
popula&on 2018 339639000 popula&on 2023 345558880
Broadband Subscrip&ons/100 ppl in 2018 34.5638
Broadband Subscrip&ons/100 ppl in 2023 39.6583
Average # Users 2018 115447320 Average # Users 2023 133782988.7
Number of ppl/household 3 Year 2018 2023
# of Households 38482439.99 44594329.56 Google's Prices
720/year $27,707,356,790.41 $32,107,917,281.58 840/year $32,325,249,588.81 $37,459,236,828.51 1440/year $55,414,713,580.82 $64,215,834,563.17
y = 1.0189x + 22.337 R² = 0.99001
0.00
5.00
10.00
15.00
20.00
25.00
30.00
2007 2008 2009 2010 2011 2012
USA Market Data
# ppl/100 with Broadband
Linear (# ppl/100 with Broadband)
Appendix A (part 2
Illustra&on of Google Fiber Cost: (source: gigaom.com) Total Target: 50,000 to 500,000 people Transla&on to # of Homes: 2.6 ppl/household -‐> 20,000 to 200,000 homes Internet Analyst Cost/Home: $3,000 to $8,000 per home Total Cost = #homes*cost/home: $60M to $1.6B For USA 300,000,000 ppl 115 million homes Overlap of areas, mul&ply by 40% -‐> 46 million internet analyst cost/home $3,000 ~140 Billion (138 Billion)
Appendix B
Seaele, WA
• Applied for Google Fiber • City owns/co-‐owns 100,000 poles on which to construct network
• Reducing Google’s cost • Has already completed the project to connect every school (elementary, middle, and
high school) to fiber, along with other public agencies • Gigabit Squared announced pricing plans for fiber network Takes advantage of
city’s underused fiber • Building fiber to the homes and fiber to the businesses in 14 neighborhoods
• Ellensburg, WA
• Approved a contract with Canon Construc8on (Dec 16) for laying down a fiber network
• 13 miles of above and underground fiber op&c cables for the city with a $961,000 • Want to use a taxpayer money to build a public network
• Will cost the city ~700 million • Filled our RPP for Google Fiber • hep://arstechnica.com/informa&on-‐technology/2013/12/how-‐us-‐internet-‐service-‐
might-‐get-‐beeer-‐and-‐worse-‐in-‐2014/
Appendix C
• Los Angeles, CA
• Cost will be from 3-‐5 billion • Will not be paid by taxpayers, will be paid by vendor
• The plan is to offer free Internet access up to 5Mbps and offer paid &ers up to a gigabit, and provide Wi-‐Fi in public areas
• 1 billion dollar plan -‐ LA will be giving out iPads to 650,000 students; providing home broadband equipment to nonprofits that distribute them to needy residents
• Los Angeles has 24 distributed data centers that it would like to modernize and consolidate while boos&ng disaster recovery and replica&on, so the data center component alone would be lucra&ve.
• Issued RPP • San Francisco, CA
• Currently owns 130 miles of fiber, but is leasing some of it (primarily to educa&onal and health care ins&tutes)
• Trying to introduce an ordinance where installa&on of fiber is down when water mains, sewages pipes, etc, are being repaired underground (‘Let’s dig once’)
• Sonic.net applied to lay fiber to 2000 homes
Appendix D
• New York, NY • Gave 5 million to Southern Tier Network (non-‐profit org) to build miles of dark
fiber connec&ng broome, &oga, and Tompkins coun&es • Google acquired the third largest building that sits on top of a trunk of dark fiber
line • The point where the cri&cal Hudson Street/Ninth Avenue fiber highway
turns right, before heading north-‐east toward the Upper West Side • Louisville, KY
• File a request for informa&on seeking a vendor to install network (Nov 14) • Offering access to its rights of way such as alleys and light poles
• Not proposing to spend taxpayer dollars on network