Wednesday, February 10, 2010

Another day, another business model under attack from Google (GOOG)

Just baby steps here, but it's in the right direction. The concept of paying $300 for a TV or $300 for a mobile device, then paying $60-$100 per month just to USE those devices, is a model that will come under attack. You don't spend $10k per month just to operate your $40k car, do you?

Googlers I've spoken with have expressed the desire to attack these pricing models aggressively, and today's announcement of a Google broadband network is a "shot across the bow" of various telecom companies.

A couple days after rumors of Google disrupting the social networking model by working in a better "status update" into Gmail, Google is now outlining the first steps of it's attack on the broadband business model.

From Google's blog:
We're planning to build and test ultra high-speed broadband networks in a small number of trial locations across the United States. We'll deliver Internet speeds more than 100 times faster than what most Americans have access to today with 1 gigabit per second, fiber-to-the-home connections. We plan to offer service at a competitive price to at least 50,000 and potentially up to 500,000 people.
Our goal is to experiment with new ways to help make Internet access better and faster for everyone. Here are some specific things that we have in mind:


  • Next generation apps: We want to see what developers and users can do with ultra high-speeds, whether it's creating new bandwidth-intensive "killer apps" and services, or other uses we can't yet imagine.
  • New deployment techniques: We'll test new ways to build fiber networks, and to help inform and support deployments elsewhere, we'll share key lessons learned with the world.
  • Openness and choice: We'll operate an "open access" network, giving users the choice of multiple service providers. And consistent with our past advocacy, we'll manage our network in an open, non-discriminatory and transparent way.




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