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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 MacNN Staff

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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.

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