How Google Plans to Turn a Profit on Kick Ass Gigabit Fiber—Maybe [Google Fiber]
Sometimes with all of Google's highfalutin talk about making the world's information useful, it's easy to forget that it's a business. GigaOm reports that the Google Fiber "experiment" in Kansas City is no exception. It's not infrastructural charity. It's a money-maker. Or at least it could be. On paper the economics of Google Fiber seem a little precarious. Google spent unknown billions installing the network only to deliver unheard-of Gigabit speeds for just $70 a month. What's more, it's offering residents of Kansas City 5 Mbps fiber service for free . GigaOm spoke with top Google execs and other sources and explains the smart business moves that not only make the product better for consumers but also better business for Google. Building its own gear: Rather than turn to an outside vendor for its network boxes, Google cut costs on gear by engineering them from the ground up. Building custom gear means it's not paying for any extraneous...