With more than half a dozen Google Fiber markets currently under development, a new study looks at how Google Fiber is performing in the initial markets in terms of attracting customers to choose Google Fiber over other options. Bernstein Research conducted a door to door survey in Kansas City where they determined Google had signed up around 20% of the homes they passed within a year of launch. Bernstein says this is “putting it well on the way to exceed 40% of homes passed and realize attractive ROIs.”
A factor that was identified early when Google first announced their concept to bring gigabit fiber to the home was that this was more a move by Google to put pressure on local ISPs to improve services and cut subscription rates. Bernstein found that Google Fiber probably only has 100,000 to 120,000 subscribers, so that pressure may not be as significant as some thought. Bernstein says it would be a mistake on the part of ISPs to ignore Google Fiber as a small, fringe experiment based on those numbers. Google Fiber could scale to 15 – 20 million homes within six to eight years, putting a lot of pressure on incumbent providers and disrupting markets.
Google Fiber currently offers service in Kansas City, Provo, and Austin with work underway in Charlotte, Raleigh/Durham, Nashville, Salt Lake city, Atlanta and San Antonio. Many expect Portland to be added to the ranks soon and Google is supposedly eyeing Louisville, Irvine, and San Diego for expansion.
source: DSLReports
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