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Is Google's Plan a Threat to the Telecom Industry?

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Is Google's Plan a Threat to the Telecom Industry?

 
February 12, 2010

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  By Erin Harrison, Executive Editor, Cloud Computing
 


Telecommunications executives appear more skeptical than concerned about Google’s (News - Alert) plan to sell 'ultra-fast' broadband access.

 
But whether Google’s plan is a real threat to the telecommunications industry remains in question, the Wall Street Journal reported on Thursday. As TMCnet reported via CNBC this week, Google is ready to build a super high-speed broadband network for up to half a million people around the United States to experiment with the possibility.
 
Industry executives and analysts appear skeptical of Google’s plan, as per a blog post reported by the Wall Street Journal: “If this were easy, everybody would be doing it,” said one industry executive, who asked not to be named. He noted Google doesn’t have experience sending trucks and technicians to people’s homes or sending out monthly bills.
 
Google unveiled plans to connect U.S. homes to the Internet with lightning-fast service that will move 1 gigabit of data per second, 10 times faster than Cablevision Corp.’s top speed of 100 megabits per second, which is already double Verizon (News - Alert) Communications Inc.’s premium offering. The planned service would allow users to download 200 songs in as little as eight seconds.
 
If successful, Google could find itself in direct competition with AT&T and Verizon, but it is unlikely the company would focus on this key aspect to drive adoption. “That’s not the point. These are test beds, not vast geographical networks,” said Art Brodsky, spokesman for public interest group Public Knowledge (News - Alert).
 
The company, which billed the plan as an “experiment,” will build out networks in several cities, and between 50,000 and 500,000 people. Google is requesting input from interested cities by March 26 and will announce those selected this year, TMCnet reported.

Erin Harrison is a senior editor with TMCnet, primarily covering telecom expense management, politics and technology and Web 2.0. She serves as senior editor for TMC's (News - Alert) print publications, including "Internet Telephony", "Customer Interaction Solutions", "Unified Communications" and "NGN" magazines. Erin also oversees production of TMCnet's weekly iPhone (News - Alert) e-Newsletter. To read more of Erin's articles, please visit her columnist page.

Edited by Erin Harrison
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