Google Fiber Unlikely to Go Nationwide

May 7, 2013
According to IHS iSuppli, despite the expansion of Google Fiber to Austin, TX, and Provo, UT, Google (NASDAQ:GOOG) Fiber is likely to remain a minor player in the U.S. broadband market. The research house believes Google is unlikely to deploy the service nationw...
According to IHS iSuppli, despite the expansion of Google Fiber to Austin, TX, and Provo, UT, Google (NASDAQ:GOOG) Fiber is likely to remain a minor player in the U.S. broadband market. The research house believes Google is unlikely to deploy the service nationwide due its high cost.IHS believes Google Fiber will be offered only in smaller markets such as in the two new cities, which collectively have a population of about 1.4 million and roughly 600,000 households, as well as in Kansas City, KS, and Kanas City, MO. The cities represent only about 0.4% of U.S. households, so even if Google managed to secure a high market share in these metropolitan areas, it would reach only about 0.2% of U.S. homes with the service.In comparison, Comcast in 2012 boasted 18.3 million broadband subscribers, AT&T totaled 16.4 million, Time Warner Cable had 10.9 million and Verizon reached 8.8 million. Matched against any of the top eight U.S. broadband companies, Google is a minor player.While the deployment of Google Fiber to the cities may capture media attention, the company’s plans are miniscule compared to what its competitors undertake in the overall market. AT&T and Verizon have spent many billions of dollars establishing fiber networks in larger population centers, something Google is unlikely to be able to match.