A business model nudge at 1 gigabit a second

Posted on February 11, 2010  /  0 Comments

Google has announced that it will be rolling out superfast broadband as demonstration projects.

“Google, indeed, appears to be playing a chess game,” said David B. Yoffie, a professor at the Harvard Business School. “If they can create an even mildly credible commitment to offer superfast broadband to the home, it could strike fear in the hearts of cable and telcos, stimulating an arms race of investment — just as they did in the auction for spectrum a few years ago.”

In a post on its corporate blog, Google said it planned to build and test a high-speed fiber optic broadband network capable of allowing people to surf the Web at a gigabit a second, or about 100 times the speed of many broadband connections. Thase trial could be offered in several communities and extend to as many as 500,000 people.

In an interview, Richard S. Whitt, Google’s Washington telecommunications and media counsel, said Google was not entering the broadband or Internet service provider business, but rather was using the test to push the industry into offering faster Internet access at lower cost. “This is a business model nudge and an innovation nudge.”

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