TBRT ECH N O LO G Y B U SIN ESS RESEARCH , IN C.
Google Fiber: Sparking a
renaissance in fixed access
Technology Business ...
TBR
2 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Chris Antlitz
Telecom Senior A...
TBR
3 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc.
What is Google Fiber?
Source: ...
TBR
4 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Though Google’s network footpr...
TBR
5 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Google is not in the “traditio...
TBR
6 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Imagine getting up to 100 time...
TBR
7 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc.
How are/will incumbent ISPs re...
TBR
8 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Difference between winners and...
TBR
9 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Incumbents will have to respon...
TBR
10 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Google grows its lucrative
on...
TBR
11 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Google Fiber is really part o...
TBR
12 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc.
Chris Antlitz
Telecom Senior ...
TBR
13 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc.
TBR’s Networking and Mobility...
TBR
14 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc.
NMP Syndicated Research Cover...
About Us
Technology Business Research, Inc. is a leading independent technology
market research and consulting firm specia...
Upcoming SlideShare
Loading in...5
×

Google Fiber: Provoking a renaissance in fixed broadband

558

Published on

Google has big plans for its Fiber initiative. What started as a lab experiment in Kansas City, Mo. and Kansas City, Kan. two years ago is manifesting into a major company initiative, one that will pit Google against incumbent Internet service providers across the nation. Google’s unique business model and go-to-market approach for Google Fiber is highly disruptive and will upend the status quo of charging high fees for relatively substandard levels of Internet service — a model that incumbents have enjoyed for many years.

Senior Analyst Chris Antlitz shared his perspective on Google’s business model and provided additional insight into performance, opportunity and how the vendors listed below are growing revenue in a challenging market.

Questions for discussion will included:

• What is Google Fiber’s strategy and business model?
• How and why is Google Fiber so disruptive?
• How will incumbent Internet service providers respond?
• What will the U.S. broadband market look like in five years?

Published in: Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
558
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
43
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Google Fiber: Provoking a renaissance in fixed broadband

  1. 1. TBRT ECH N O LO G Y B U SIN ESS RESEARCH , IN C. Google Fiber: Sparking a renaissance in fixed access Technology Business Research (TBR) Webinar Series Aug. 12, 2014
  2. 2. TBR 2 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc. Chris Antlitz Telecom Senior Analyst Email: chris.antlitz@tbri.com Twitter: @chrisNMP Phone: 603.758.1850 Webinar Presenter
  3. 3. TBR 3 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc. What is Google Fiber? Source: Google Source: theweek.com Source: wired.com Source: chrome.com Source: airbnb.com Source: Google Source: Google Google Fiber is an initiative at Google centered on providing Fiber to the Premises (FTTP) internet service to the masses at affordable rates
  4. 4. TBR 4 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc. Though Google’s network footprint is small, it is disrupting the status quo in the fixed access business and is pushing incumbent operators to respond by investing in their own networks. This is touching off a renaissance in fiber access deployment across the U.S. We are in the very early innings of this playing out… Where is Google Fiber deployed? If Google deployed fiber to all 12 metros it is currently targeting, it would only cover 3% of U.S. population, but this is all it takes for the reaction Source: Google
  5. 5. TBR 5 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc. Google is not in the “traditional” ISP business, it is using better access to indirectly grow its lucrative, high-margin online advertising business Why is Google in the fiber business? What’s the point? • Faster internet = more ad dollars • Google also able to build customer loyalty from value offerings How is Google able to provide a better offering than incumbent ISPs? • “Win the people, win the city” model • Concession based approach to deployment NOTE: Google is likely operating access business on breakeven basis. What is Google Fiber’s strategy and business model?
  6. 6. TBR 6 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc. Imagine getting up to 100 times the internet speed and a full suite of HD TV channels for a fraction of the cost of incumbent offerings Why is Google Fiber Disruptive? Google Fiber service offerings and prices Source: adweek.com Source: Google
  7. 7. TBR 7 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc. How are/will incumbent ISPs respond? Incumbent ISPs need to increase value substantially in order to retain subscribers; there are two paths to take Operators can follow two paths: Differentiate what comes through the pipe. Compete on width of pipe. End result / Implications Options to increase value Losing strategy long-term. Speeding up own service and eating the cost is not sustainable. Many ISPs will stumble and or go bankrupt. Strategy incurs huge capex costs and leads to margin compression. Viable strategy long-term. Service differentiation enables incumbents to provide value in ways other than purely speed.
  8. 8. TBR 8 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc. Difference between winners and losers is who can provide the most value through the pipe, not the fastest speeds; the big guys get this and are already on the move Examples of what some ISPs are doing to differentiate their services AT&T • Ubiquitous multiscreen video (DirecTV play) • Solutions tailored for enterprise Verizon Comcast • Ubiquitous multiscreen video (LTE Broadcast and Intel Media play) • Solutions tailored for enterprise • Leverage content properties • Free Wi-Fi from CableWiFi Alliance Differentiation Strategy Challenges • Lots of legacy – will need to maintain high capex despite differentiation strategy • Not content owner Not content owner Limited migration options from DOCSIS 3.0
  9. 9. TBR 9 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc. Incumbents will have to respond to Google Fiber and provide better internet service What will the U.S. broadband market look like in five years? The future is substantially more fiber in U.S. networks More fiber will be deployed across the U.S. and it will be closer to the end-point Google Fiber has become more than just a network, it has become a movement and model for the future of internet access. It is no longer just viewed as a lab experiment; it is touching off a renaissance in fixed access across the U.S., one that will reshape the broadband footprint in the U.S. in coming years.
  10. 10. TBR 10 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc. Google grows its lucrative online advertising business indirectly from its end-users having faster internet speeds. Consumers, not just those subscribing to Google Fiber, get faster internet speeds at lower cost. Telecom vendors benefit from resurgent spend on infrastructure as Google and incumbent ISP operators invest in fiber. U.S. economy stands to benefit because faster internet speeds means better productivity and quality of life. It also means more jobs. Implications for telecom sector and U.S. economy The impending fixed broadband arms race stands to benefit not only Google, but the entire U.S. economy
  11. 11. TBR 11 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc. Google Fiber is really part of a much broader initiative at Google, which is to provide universal, low-cost, high speed access to the internet What else is Google trying to do; what is the “Master Plan”? Source: guardianlv.com Source: broadbandworldforum.com Project Loon Other Ideas Source: dailymail.co.uk Source: newstalkzb.co.nz Source: businessinsider.com
  12. 12. TBR 12 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc. Chris Antlitz Telecom Senior Analyst chris.antlitz@tbri.com @chrisNMP Phone: 603.758.1850 Google Fiber: Sparking a renaissance in fixed access James McIlroy Vice President of Sales Email: mcilroy@tbri.com Telephone: 603.929.1166 Twitter: @TBRinc SlideShare: www.slideshare.net/TBR_Market_Insight YouTube: www.youtube.com/user/TBRIChannel Questions?
  13. 13. TBR 13 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc. TBR’s Networking and Mobility Practice covers telecom operators and network vendors on a global basis NMP Overview Networking and Mobility Practice Portfolio Operator Research Telecom Operator Enterprise Operator Vendor Research Telecom Vendor Services (TIS) Benchmark Addressable Market Forecast (AMF) Margin Benchmark Equipment Software Enterprise Networking Services (NIS) Equipment and Software
  14. 14. TBR 14 TBR Webinar Series | 8.12.14 | www.tbri.com | ©2014 Technology Business Research Inc. NMP Syndicated Research Coverage Telecom Vendors Operators Benchmarks • Alcatel-Lucent • Cisco Systems • Ericsson • HP Telecom & Mobility • Huawei • IBM Telecom & Mobility • Juniper Networks • Nokia Networks • Samsung Telecommunication Systems • ZTE • AT&T • Sprint • T-Mobile USA • Verizon Enterprise Coverage: • AT&T Business Solutions • BT Global Services • Orange Business Services • Verizon Enterprise Solutions • Vodafone Enterprise Services • Telecom Vendor Benchmark o Telecom Infrastructure Services (TIS)  Telecom Infrastructure Services Benchmark  Telecom Infrastructure Services Margin Benchmark  Telecom Infrastructure Services Addressable Market Forecast  Telecom Infrastructure Services North America Addressable Market Forecast • Enterprise Network Vendor Benchmark o Enterprise Networking Addressable Market Forecast o Network Infrastructure Services (NIS) Benchmark • U.S. and Canada Mobile Operator Benchmark Enterprise Networking Cable Providers (Reports include content on Ent. Networking) • Accenture Telecom & Mobility • Cisco Systems • HP Telecom & Mobility • Huawei • IBM Telecom & Mobility • Juniper Networks • Comcast • Time Warner Cable Internet Companies • Google • Microsoft Telecom & Internet TBR Networking and Mobility Practice Syndicated Coverage
  15. 15. About Us Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, telecom and enterprise network vendors, and operators. Serving a global clientele, TBR provides timely and actionable market research and business intelligence in formats that are tailored to clients’ needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis. TBR has been empowering corporate decision makers since 1996. To learn how our analysts can address your unique business needs, please visit our website or contact us today. Contact Us 1.603.929.1166 info@tbri.com www.tbri.com 11 Merrill Drive Hampton, NH 03842 USA This report is based on information made available to the public by the vendor and other public sources. No representation is made that this information is accurate or complete. Technology Business Research will not be held liable or responsible for any decisions that are made based on this information. The information contained in this report and all other TBR products is not and should not be construed to be investment advice. TBR does not make any recommendations or provide any advice regarding the value, purchase, sale or retention of securities. This report is copyright-protected and supplied for the sole use of the recipient. Contact Technology Business Research, Inc. for permission to reproduce.

×