Itsme

Free Wi-Fi? Get Ready for GoogleNet.
By Om Malik, August 12, 2005

What if Google (GOOG) wanted to give Wi-Fi access to everyone in America? And what if it had technology capable of targeting advertising to a user’s precise location? The gatekeeper of the world’s information could become one of the globe’s biggest Internet providers and one of its most powerful ad sellers, basically supplanting telecoms in one fell swoop. Sounds crazy, but how might Google go about it?
First it would build a national broadband network -- let's call it the GoogleNet -- massive enough to rival even the country's biggest Internet service providers. Business 2.0 has learned from telecom insiders that Google is already building such a network, though ostensibly for many reasons. For the past year, it has quietly been shopping for miles and miles of "dark," or unused, fiber-optic cable across the country from wholesalers such as New York’s AboveNet. It's also acquiring superfast connections from Cogent Communications and WilTel, among others, between East Coast cities including Atlanta, Miami, and New York. Such large-scale purchases are unprecedented for an Internet company, but Google's timing is impeccable. The rash of telecom bankruptcies has freed up a ton of bargain-priced capacity, which Google needs as it prepares to unleash a flood of new, bandwidth-hungry applications. These offerings could include everything from a digital-video database to on-demand television programming.

An even more compelling reason for Google to build its own network is that it could save the company millions of dollars a month. Here's why: Every time a user performs a search on Google, the data is transmitted over a network owned by an ISP -- say, Comcast (CMCSK) -- which links up with Google's servers via a wholesaler like AboveNet. When AboveNet bridges that gap between Google and Comcast, Google has to pay as much as $60 per megabit per second per month in IP transit fees. As Google adds bandwidth-intensive services, those costs will increase. Big networks owned by the likes of AT&T (T) get around transit fees by striking "peering" arrangements, in which the networks swap traffic and no money is exchanged. By cutting out middlemen like AboveNet, Google could share traffic directly with ISPs to avoid fees.

nhbilly

thx...interesting

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mcs328

Hmmm...makes sense to me if they can cut out the middle man to save money and at the same time make more money by selling additional services as a side benefit.

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modena

wow that sounds really cool, good find

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johnnymk

Aren't there still costly maintenance fees for the network?

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Thesifer

Sounds like it may still be a good investment to buy some google stock.. eventhough the price is outrageously high

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brainsmile

define outrageously high... compared to Berkshire Hathaway?

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InfiniteNothing

Oh man. Google is taking over the world. At least we know now who our masters will be.

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Airencracken

1337. At least our new masters have a good sense of humor.

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kimchicowboy

it's starting to scare me. all that google is doing.

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DaFunkyUnit

I, for one, welcome our new information-hungry overlords.

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Maarchk

So in 10 years the world will be owned by, Google, Amazon, Starbucks, Disney, and Mc Donalds?

Its interesting.. But what are they going to do? Drive out all internet providers and make our whole nation a wireless world? That would be cool, but it will probably only appeal to consumers, cause businesses will want to still have secure networks and redundant connections... Sounds cool, but i wonder to what end they seek to go... 10 dollars a month for wireless any where in the nation? that would be tight...

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Jeffbx

Don't forget Microsoft!

bachviet

Don't you know M$ will be forced out of business by Apple?

Anyway it would be cool if the price is right for wireless high speed connection nationwide.

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