Larry Page said at earnings report that Google will be focusing on big ideas and projects like the Google Fiber network and Google Glass.
Ever since Larry Page took the CEO position he’s been trying to get the company a lot more focused on the big ideas, and projects that can go big, and also make them a lot of money. Over the past 2 years he’s been focused on growing products like Crome, Youtube and Android, but in the future he expects to focus more on things like the Google Fiber network and Google Glass.
“Companies tend to get comfortable doing what they’ve always done, with only a few minor tweaks. It’s only natural to work on the things you know. Minor changes make things obsolete.”
Google Fiber Network
Google Fiber has received a lot of buzz lately, because it’s something many Americans want badly. Google Fiber means 1 Gbit symmetric download/upload speed, and unlimited bandwidth, unlike what other ISP’s are offering, which is a lot less speed, and you have data and speed caps.
The competitors seem to have noticed people are getting more and more interested in getting Google Fiber, and are starting to answer to this, although so far it has been mostly just talk, like AT&T announcing that they, too, will offer Gigabit speeds in Provo, Utah, but without giving any details on when exactly will that happen, and how much they plan on charging for it.
They are right to be afraid of Google Fiber, though, because while Google initially said that the initial Google Fiber is just an experimental project, I believe they are very serious about launching it nationwide.
They have absolutely nothing to lose from this. Worst case scenario, the money they already put in expanding the infrastructure nationwide can’t be recovered as soon as they expected, and then they sell the Gigabit network for a lot less than they put in. That company gets to buy a fully expanded Gigabit network, that they can just charge people for using, as much as they want. But while Google may lose some money from this, they will achieve their goal of making the Internet much faster.
But this really is a pretty bad scenario, but I believe things will work out a lot better for them. What I think will happen is that Google will continue to build the Google Fiber network, and they might even become a very big ISP in US. Even better, all the other ISP’s will scramble to compete with them, and not lose customers, so they will build Gigabit networks, too, even if they will be slightly worse than Google’s network (data caps, etc).
Best case scenario, Google ends up becoming the dominant ISP in US, and then they will own the complete stack from Internet connection to your Android operating system, Chrome browser and services. So Larry Page is right to make the Google Fiber network a big priority for Google.