Wednesday, February 10, 2010

"Google Jolts Telecom Rivals"

Google, one of the Internet’s fastest growing search engines, has decided to develop and offer a high-speed, fiber-optic web service. Google is campaigning this service as “think big with a gig”. This network will operate 100 times faster than what most Americans have access to with a speed of one gigabit-per-second. Google is being realistic in their approach by saying they are not trying to build a nationwide network rival. They only plan on reaching 50,000 to 500,000 people in select cities. Google wants to improve the Internet speed to advance their services like YouTube in allowing people to download and stream faster.

Compared to other nations, the United States is slow with our Internet speed and is in need of improvements. As stated by Akamai’s State of the Internet for this quarter, the United State’s Internet speed has declined 2.4% from 2008 to 2009 and was ranked as 18th out of 203 nations. Google’s aspiration is to develop new deployment techniques for building fiber networks in an effort to inform and assist the deployment of faster networks by other internet service providers elsewhere. I think Google’s approach shows their growing concern and impatience with our countries slow broadband. Google is not taking this chance to become a major Internet service provider, but to improve our Internet access and the programs and sites that depend off of the speed of the Internet.

Google’s plan of diversification into a new market with a new product could become a detriment and hinder the company. As Ms. Vascellaro points out, Google will have to expand their primary value chain with customer service and logistics. Google has never had to deal with customer service, the billing of customers, or sending out trucks, which may present difficulties. I think Google is well experienced in Web infrastructure and capable, but to tear up all the neighborhoods in order to replace the copper with fiber and convincing people to allow them may not be as easy as they think. “Verizon said Google's project is a validation of its own strategy. Verizon has spent $23 billion to replace much of its copper-wire network with a faster fiber-optic one, but the deployment took several years and is ongoing. Other telcoms have more limited network upgrade plans, but all of them use fiber to connect new housing developments and infrastructure.” If Verizon has spent that many years and that amount of money working on fiber-optic networking, I am hesitant to have faith in Google’s “think big with a gig” campaign.

Vascellaro,Jessica. "Google Jolts Telecom Rivals". Wall Street Journal. 11 Feburary 2010. http://online.wsj.com/article/SB10001424052748704140104575057273487119574.html?mod=rss_whats_news_us&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Fxml%2Frss%2F3_7011+%28WSJ.com%3A+What%27s+News+US%29#video%3D57E0FCA1-6EEA-477C-8F96-43DFAF8B7EFA%26articleTabs%3Darticle.

2 comments:

  1. I was very surprised by the statistics in this article. I'm amazed that America is ranked 18 out of 203 nations in Internet speed and also that Internet speed has decreased by such a significant number within the past year. After reading that however, I am not surprised that Google is taking steps towards creating a high-speed, fiber-optic web service. Obviously this will be a very long, expensive process but if it will increase operation time by 100 percent I think it would be worth it. Also, since Google has such a respected, well-known name, I do not think it will be hard for them to get people to support them and to invest in this new project. If this project should prove successful, I think Google should go against their initial plan on only reaching a limited number of people in certain cities to spreading it nationwide. While they would then turn into a huge competor for Verizon, I think it would be a great business venture for them.

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  2. I was also shocked when I read that in the article they said that the United States had very slow internet speed compared to other nations. My internet seems instant and I think it is pretty efficient most of the time. But it does not surprise me that Google is the first to look into fiber-optic high- speed internet. Google started a revolution for internet search engines and research became known as "googling". Instead of saying research it, currently people are saying "Google It". Therefore, it does not surprise me that Google has stepped up to develop higher speed internet. This will be a great success and business innovation for Google. People will definitely invest and make this vision a reality.

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