Tag Archives: Google Fiber

internet

Will the Valley Embrace Google Fiber?

Haynes & Company, a leader in innovative grassroots research and analytics for institutional investors, announced additional findings related to its study of Google Inc.’s high-speed fiber optic internet service in Kansas City. Google is considering bringing its ultra high-speed Internet network in Phoenix, Scottsdale and Tempe.

Google launched the ultrafast internet service in Kansas City beginning with its community-led “pre-registration” program in 2012.  Turning to this new model for deciding where, and when, to launch its 1GB service plus its first-of-its-kind, lifetime free service option hold the potential of closing the “digital divide”. To assess the impact of the roll out, Haynes & Company sent a team of researchers door-to-door in six, low-income neighborhoods to gauge both the awareness and the adaptation of the fiber optic service.

The most compelling takeaway was that only 16% of households surveyed had subscribed to the service. However, in a bright spot for Google, the vast majority (81%) of those households that have not yet subscribed had heard of the service, resulting in a 97% product recognition rate for Google Fiber. Moreover, of those households that had heard of Google Fiber but were not yet subscribers, 37% rated themselves as likely to sign up in the next 12 months. And, a full 12% said they would definitely sign-up.

“While the adaptation rates are relatively low, Google’s efforts are paying off in that consumers are well aware of the product,” said Elizabeth Haynes, Founder and President, Haynes & Company. “However, what we also found in speaking to people is that one thing that is keeping them away is cost, this despite Google’s attempt to structure appealing payment plans.”

Twenty-three percent of those likely to sign up in the coming year cited cost as a factor that could keep them from switching or installing Google Fiber.

The Google Fiber service, which costs $70 a month, offers speed of one gigabit a second, about 100 times faster than the national average. A slower service – about half the speed of the national average – is free after a $300 installation charge. It is this free service that holds the greatest potential for closing the digital divide for lower-income customers.

As Google continues to roll out its fiber product, Haynes & Company believes that significant opportunity remains to capture market share; however, it will require providing more than just access.

“Google has a real foothold in the mobile phone market with its Android operating system, and they should leverage that,” added Haynes. “For example, by bundling the one-time installation fee with mobile-phone plans and having Google Fiber available for sign-up in carriers’ stores where benefits of the service can be reinforced, we believe Google could markedly increase the uptake rate for the free service.”

 

 

 

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Google Fiber could be coming to Valley

The cities of Scottsdale, Phoenix and Tempe joined Google Wednesday in announcing the first potential expansion of Google Fiber to the Valley.

Google Fiber is an Internet and TV service that provides Internet connectivity that is up to 100 times faster than the basic broadband, along with hundreds of high-definition TV channels.

“Scottsdale and Google Fiber are a perfect match,” said Scottsdale Mayor W.J. “Jim” Lane. “We are a connected city, filled with innovative and creative people and businesses – which is why Google named Scottsdale the 2013 E-City of Arizona. I look forward to working with Google Fiber to explore bringing Scottsdale residents ultra-high speed Internet access to make us more future-ready than ever.”

What’s next?

Starting this week, Google will work closely with city leaders on a joint planning process to explore what it would take to build a brand new fiber-optic network capable of delivering these gigabit speeds throughout Scottsdale.

Google will begin compiling a detailed study of local factors that might affect construction plans. Simultaneously, Scottsdale will begin meetings with Google to discuss what it would take to plan and prepare the city for a fiber project of this scale.

Read more about the process on the Google Fiber blog here.

Google will announce by year’s end which cities will get Google Fiber. The service is currently available in Kansas City, Kansas, Kansas City, Missouri and Provo Utah, and will be available in Austin, Texas later this year.