Google Entering the ISP Business

The Appetizer

Google has officially announced their entry into the ISP provider business.  Their service will offer 1Gbps speeds to select markets.  As the article states, Google’s, “idea is to provide next-gen access to between 50,000 and 500,000 people and basically see what happens…” They will not announce which “select” markets it will be launched in until later this year.

The Main Course

The Dessert:

When you think about it, it is not surprising that Google is doing this.  In fact, it would seem like a logical step, considering their free citywide WiFi network experiment a few years ago, along with their fiber purchases.  But that is not what really stands out (to me at least).  What stands out to me is the big picture, and more importantly, the environment that this opens up for Google.  They started with the launch of a search engine, and have been rapidly expanding over the last few years, owning additional virtual platforms (You Tube), creation of desktop/mobile operating systems (Android, Chrome), software/platforms (Google Apps, Google Chrome web browser).  Now, along with owning platforms, distribution systems, and content, they will also have the ability to own the distribution system that sends out all of their services, making their company virtually completely vertically integrated.   You know the FCC cannot be too far behind them in terms monopoly concerns with this type of expansion.  But the impact is even bigger than that.  Google has also, as shown, been steadily investing into other industries, such, television broadcasting.  Google already offers to ability to purchase advertisements through them to multiple platforms, including traditional television; they have thousands of hours of content thanks to You Tube and Google Video, and, in relation to You Tube, have content/distribution agreements with professional content providers.  Knowing that traditional television is moving in the direction of being distritbuted over internet in the very near future, with Google now owning content, a branded distribution platform, and content, what would stop them from launching a full fledge multiplatform network/subscription based service?  They have all of the pieces at this point and have already laid the ground work for a smooth transition.  Becoming an ISP provider only seals the deal even more and gives them a better chance of coming from behind and catching their potential competitors off guard, and being years ahead of them as well. You have to love strategy…

The Overall Meal

4 Stars!

The Doggybag

Do you think this development and expansion of the Google empire is a good thing for all or a sign of major problems to occur for all (consumers and business competitors alike) in the future?

Please place your response below.

Let the convos begin!

One thought on “Google Entering the ISP Business

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