Google's explosive internet service "Google Fiber" restrains business expansion and reduces personnel
Up to 1 Gbps network service that was provided in some parts of the US as an experimental broadband Internet service from 2010 "Google Fiber"We announced that we will reduce employees and stop future expansion of the Internet network.
Google Curbs Expansion of Fiber Optic Network, Cutting Jobs - The New York Times
Google Fiber continues to expand the provisional area gradually from 2010, and will continue to expand the provisional area in Kansas State Kansas City, Kansas O'Reisa, Kansas City, Missouri Kansas City, Austin, Texas Austin, Provo, Utah Province, Nashville Tennessee, Atlanta, Georgia, Salt Salt Services are provided in metropolitan areas such as Lake City. The price setting is 70 dollars (about 7200 yen), you can get 1 Gbps Internet connection which is 100 times the American general Internet speed and you can get TV service in addition to Internet service at $ 120 (about 12,000 yen) It is possible to receive. Also, even if you do not subscribe to Google Fiber you can use the internet at 50 Mbps for free.
In June 2016, Google Fiber acquired a high-speed Internet service provider / Webpass, and it was expected that further expansion of the offering area was expected, but as Google's parent companyAlphabet, Google Fiber 's expansion of business expansion and reduction of employees were announced. The exact number of employees to be reduced remains unpublished. Going forward, Google Fiber will continue to provide the Internet in the area already providing the service, but the expansion area will not be expanded.
According to Alphabet, Google Fiber's attempt was expensive capital investment, but it is said that the expected profit has not been obtained. The loss is the module smartphone "Project AraIt also reports that it is pressing down on the budget of other projects, such as affecting development interruption.
In experimental projects excluding Google's core business, such as Google search, Google received 185 million dollars (approximately 88.56 billion yen) of operating loss in the second quarter of 2016, a profit of 185 million It is announced that it was dollar (about 19 billion yen). Although the detailed balance of Google Fiber is not disclosed, the investment in Google Fiber occupies most of the capital expenditure of 280 million dollars (about 28,860 million yen) allocated every quarter I know that.