Should Google Fiber Be Deemed A Failure?

Should Google Fiber Be Deemed A Failure

Google Fiber is most commonly known for its fiber internet connection, but did you know Google Fiber also has a cable TV service? Just like every other service provider, Google Fiber also decided to offer traditional TV channels, but lately, Google Fiber has announced that they are gonna discontinue their cable TV services. They reasoned that traditional TV is expensive and outdated and they want consumers to focus more on the streaming services, which is why Google Fiber has decided to refocus their attention to just providing internet services.

But recently, Google Fiber also reinstated that they were going to stop expanding Google Fiber’s internet connection to other cities in the US. Currently, they are operating in 18 major cities around the US, and they plan to stay that way. Critics have deemed this a failure for Google Fiber internet services, but was it really a failure? This will be explored in this article.

Why Google Fiber Has Been Deemed A Failure

Following are some of the reasons why that is so:

Zero marketing

Google’s strategy never included sending an email or post to their existing or prospective subscribers about the bundle deals or other offers in their services. For instance, in Austin, Texas, AT&T was able to beat Google in promoting its marketing strategy and gaining consumers, by selling internet speeds up to 300 Mbps and promises of 1 Gbps connection. This helped AT&T to gain consumers and lock them into a contract.

Cheap prices

Since the beginning, Google Fiber’s internet connection was around $70 per month and additional costs for cable TV services. After a while, Google Fiber brought the price down to $50 for a 100 Mbps service, which might be good for customers, but it simply didn’t earn the company enough money to profit from it and deal with the staggering costs of it.

Bad service

Back in 2015, there was an outage on Google Fiber services during the World Series, where many subscribers were deprived of an internet connection. Now outages are very common with service providers, and they are usually one of the reasons why internet service providers are ranked as the lowest performers. But this big outage had a devastating impact on the reputation of Google Fiber, that they weren’t even sold to prospective consumers.

Infrastructure

Building an internet infrastructure is no easy feat. Google Fiber relied on fiber deployment, but they also experienced roadblocks from a lack of partnerships or other providers. For instance, in Louisville, Kentucky, lawsuits were sent to Google for using existing infrastructure like utility poles to hang its cables. Also with the slow deployment of cables around the city, Google Fiber was beaten by its competitors. 

But Was It Really A Failure?

Based on earlier statements, Google Fiber may not have the perfect business model and a successful transition to other cities in the US, but it still managed to spur its failure by bringing a change in the service providers’ businesses in the US.

  • In 2010, Google Fiber completely changed the definition of internet speed by launching fiber internet connection, offering connections up to gigabits per second – a hundred times faster than average internet speed at the time – resulting in a billion-dollar broadband industry. This forced its competitors and incumbents to speed up internet infrastructure, and that led to the emergence of new industries, expansion of telecommunication services, and faster internet speeds.
  • Other internet services also stepped up and decided to offer gigabit services. For instance, with the introduction of fiber connection, Google Fiber’s competitors were forced to get to the standard of providing fiber internet connection to the whole country. Service providers like AT&T and Spectrum also introduced new pricing plans, faster internet speeds, and drew up proposals for fiber internet services. 
  • Also in one case, Google Fiber had to take its services out of Louisville, Kentucky, because they were unable to continue. But AT&T took its place by providing the consumers with increased connection speeds and better customer services. 

Google Fiber decided to stop the production of its services to other cities, but it will continue to provide internet and cable TV services to the 18 cities in the US. Whatever may have led to their failure towards expanding their services, the fact that Google Fiber’s own reliable services geared the other service providers towards doing better for their subscribers cannot be ignored. 

On a side note, with its gigabit internet connection and a number of TV channels for affordable prices, Google Fiber would’ve been a good option for those who want to save their budget. But since that bundle option is no longer available to most areas, consumers can try looking at others like Xfinity internet plans. Xfinity services are available in 39 states in the US, unlike Google Fiber, which is why consumers will have more luck with this service. 

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