The problem with this view is that Google has, apparently, already tried and failed several times to get a satisfactory price on capacity from existing trans-Pacific cable providers. The company certainly understands the unit costs of fibre networks as it already owns such infrastructure in the continental United States and, as the world’s Internet leviathan, is reportedly frustrated that it can’t get a decent price on the trans-Pacific route – although that is hardly surprising given that most of the capacity on such pathways is controlled by the very Tier 1 telcos that regard Google as a freeloader and undeserving beneficiary of much of the value of the Internet economy.
Google doesn’t want to build a cable to sell bandwidth to third parties (although that could be a natural consequence and corollary of its plans), but because, as a voracious generator and recipient of Internet traffic, it wants to control its own destiny .
And as our Friday report indicates, Google doesn’t want to build the cable unilaterally. Rather it would much prefer to share the price of construction and deployment with consortium partners so it can gain access to a fibre pair on a true cost basis, rather than paying marked-up retail rates.
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