After being plagued by several issues, Google Fiber has finally thrown in the towel on further expansion into new cities for its super-fast fiber internet connections. Project chief Craig Barratt is stepping down from his position, several job cuts will be announced and the project itself will be restricted to the areas it already serves.
In a blog post, Barratt wrote:
“We have refined our plan going forward… It entails us making changes to focus our business and product strategy. Importantly, the plan enhances our focus on new technology and deployment methods to make superfast Internet more abundant than it is today.”
So far, Google Fiber managed to set up services in 8 cities across the United States, and several more were lined up. However, cities on the new list will not be getting super-fast internet connections. These include Dallas, Los Angeles and Portland, OR.
Why Google Fiber Could Still be a Disruptor
Google Fiber was admired by a lot of people when it first launched in 2011 because it helped spur other broadband and cable internet providers like AT&T and Comcast to ramp up their own fiber internet initiatives. However, these companies have long mocked Google for its attempt at moving in on their highly capital-intensive space. Especially AT&T, which publicly criticized Google for taking on such an Herculean task.
More recently, Google also applied for testing rights for wireless connectivity, and last week the company filed a Special Temporary Authority to test two wireless transmission devices thought to be linked with their virtual reality efforts, but could possibly be for testing wireless internet delivery.
Nevertheless, as it now stands, Google is scaling back on its fiber cable efforts, and has announced that it will not expand into any new locations with its fiber internet connections. The Google Fiber unit, now under the control of Alphabet’s “Other Bets” division, has also been under pressure fromAlphabet CEO Larry Page to cut costs after the unit failed to meet expectations on revenues as well as subscriber additions.
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