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.