Interesting People mailing list archives

re Why Google Fiber Failed to Disrupt the ISPs


From: "Dave Farber" <farber () gmail com>
Date: Wed, 2 Aug 2017 14:39:16 -0400


Brett claims 
'Google has been spending millions of dollars -- much of it flowing via foundations, dark money 501(c)(4)s, academia, 
"think tanks," and so-called "public interest" lobbying shops -- to lobby for government regulations that would make 
ISPs barely profitable or even unprofitable, “

but i am far from convinced from my experience and his “proof” def


Begin forwarded message:

From: Brett Glass <brett () lariat net>
Subject: Re: [IP] Why Google Fiber Failed to Disrupt the ISPs
Date: August 2, 2017 at 2:14:37 PM EDT
To: dave () farber net, "Ip ip" <ip () v2 listbox com>

Dave, and Everyone:

As an ISP with 25 years' experience, I can say with certainty that Google Fiber failed to disrupt "the ISPs" (as if 
we are a homogeneous group) because:

1. Being an ISP is incredibly hard, and Google didn't have -- or develop -- the chops to do it. One of the reasons 
Google has been so incredibly profitable in its other businesses is that it provides essentially no customer service 
or support for any of them. It is COMPLETELY inexperienced at providing personalized technical support, and is not 
willing to spend the money to do so. It is also unused to being blamed for every tiny technical problem which is not 
its fault (a situation which ISPs encounter daily). Yet its own lobbyists, and those of other edge providers, 
encourage consumers to blame any network, computing, or service problem on the ISP.

2. Google Fiber was never intended to be a long term, going concern. It was a money-losing publicity stunt, intended 
to stimulate governments at all levels to regulate ISPs. (They'd ask, "If Google can provide broadband that cheaply, 
why can't you?" Never mind the fact that Google Fiber was highly unprofitable and therefore unsustainable.)

3. Google Fiber was at cross-purposes with other efforts within Google -- in particular, its lobbying efforts in 
Washington DC. Google has been spending millions of dollars -- much of it flowing via foundations, dark money 
501(c)(4)s, academia, "think tanks," and so-called "public interest" lobbying shops -- to lobby for government 
regulations that would make ISPs barely profitable or even unprofitable, allowing Google and other edge providers to 
collect most or all of the money flowing to and through the Internet ecosystem. Being an ISP itself exposes Google 
itself to the very attacks that other portions of the same company are mounting against ISPs.

4. To keep Google Fiber from being even a greater loss than it already was, Google was forced to go into the pay TV 
business -- a business against which it competes (via YouTube and its advertising businesses) and which is heavily 
regulated. It wasn't prepared for the enormous regulatory burdens of doing so, nor for the extreme difficulty of 
negotiating with content providers (including content monopolies such as ESPN and "must carry" local TV stations) for 
reasonable rates. And it did not get into the local telephony business, which is an even deeper regulatory tar pit, 
even though a "triple play" offering might have boosted revenue. Why? Due to the huge regulatory burdens that this 
would impose.

In short, Google found out that this money losing publicity stunt -- which it listed in its financial reports as one 
of its "other bets" -- was even a worse bet than it thought. Expect it to sell its last mile fiber networks to other 
carriers within the next 12-24 months.

--Brett Glass





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