Printed from http://www.electronista.com

Analysts estimate nationwide Google Fiber to cost $140B

updated 09:21 pm EST, Sun December 9, 2012

Cost of covering half US population exceeds cash reserves

Analysts have worked out that it would cost Google over $140 billion to cover the entire United States with fiber. Copying the same Google Fiber project in Kansas City, Kansas and Kansas City, Missouri would take a lot more in funding than the company's $45 billion in cash reserves, though a significant number of homes and businesses could still be theoretically covered.

The Goldman Sachs analysts, speaking to Business Insider, suggested that covering half the US population would still cost $70 billion, more than company reserves would allow. "If Google devoted a quarter of its $4.5 billion annual capex to this project, it could equip 830k homes per year, or 0.7-percent of US households" said the report, which also estimates that Verizon spent roughly $15 billion for its FiOS fiber network, covering 17 million homes.

Google Fiber went live in November, offering gigabit Internet access and a TV service for $120 per month, as well as offering customers Internet-only for $70 per month, and free 5Mbit broadband if they paid the $300 installation fee alone without a subscription. TV packages included a 2TB DVR, the ability to record eight channels simultaneously, and a Nexus 7 as a remote control.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

  1. asasaki

    Fresh-Faced Recruit

    Joined: 12-11-12

    So Apple has almost enough in its cash reserve to do this without breaking a sweat.

    Interesting.

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Tablo DVR

With over-the-top content options growing past Hulu and Netflix, consumers may be finding it harder to justify paying a monthly fee fo ...

Sound Blaster Roar Bluetooth speaker

There could very well be a new king of the hill for Bluetooth speakers, with Sound Blaster's recent entry into the marketplace. Bringi ...

Kenu Airframe Plus

Simple, stylish and effective, the Kenu Airframe + portable car mount is the latest addition to Kenu's lineup. Released earlier this y ...

Sponsor

toggle

Most Commented

 
toggle

Popular News