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Google expects Fiber to be profitable, hints at new markets

Google Fiber Expansion

Google Fiber is seen by many as a regional experiment that will push current Internet service providers to offer faster speeds at more affordable speeds. Google Fiber head Milo Medin countered that perception at an event on Wednesday, however. Speaking at a Fiber-to-the-Home Council meeting, the executive explained that the company’s fiber-optic broadband network isn’t just an expensive research project but a great and profitable business for Google, CNET reported.

Medin noted that Google has kept costs down by partnering with cities that are interested in bringing the company’s gigabit fiber network to its residents. Partners help Google build a less expensive and less time-consuming network. The company is also keeping costs down by building its network in only select neighborhoods, known as “fiberhoods,” where there is strong demand for its fiber-optic service, rather than entire cities.

The executive explained some of the challenges Google faced when launching Fiber. He said the biggest headache was offering TV service, which is a must for attracting new customers away from phone and cable companies. The TV service has cost Google the most money since the company has had to sign programming agreements, build its own set-top-boxes and create a system for delivering TV through its fiber network.

Perhaps the most exciting news was the possibility of Google Fiber coming to more markets. Medin hinted that Google Fiber may expand to new cities in the future. The executive didn’t give specific details, although he warned that Google would only consider a city if the conditions were right. While expansion is possible, a recent report suggested that Google is unlikely to offer Google Fiber on a national level due to the overall cost that it would require.