There’s been a lot of speculation about Google’s plans to deploy Gigabit fiberoptic Internet. Where will they deploy? What are the criteria? How many homes will they serve? Will they favor cities, or rural areas?
Your guess is as good as mine. But as a part of the global tech community and as someone who has spent a lot of time at Google and with people from Silicon Valley, these are my guesses about what they might do.
Cities Offer Higher Returns
Cities have the kind of density required to deliver a lower cost-per-home deployment. Less cable, a single point of negotiation and contact, and the ability to deploy using lateral construction from fiber conduits means lower overall costs.
Multi-family housing means more customers per square mile. Baltimore has a city-owned conduit system which can serve over 90% of the area of the city — without requiring the use of poles or negotiating with third party utilities.
Rural Areas Cannot Be Served Profitably
Telephone companies receive funds from the Universal Service Fund to subsidize service in areas that otherwise cannot be profitably served. Google is not subject to the regulatory framework (Communications Acts of 1934 and 1996) that would give it access to USF funds; in fact, it has every incentive to fight to avoid falling under such regulation.
Google is not a charity, it’s not being subsidized by the government, and it is not a monopoly. There is no special reason why Google should care about making services available in rural areas, and there is certainly no profit motive. Rural service requires fuel, vehicles, and people on the ground. Every part of this is expensive; it’s why it loses money and why it has to be subsidized by USF funds.
Google simply has no motive at all to serve rural areas. I’ll eat cat meat if Google selects a rural area for this trial. It just won’t happen.
Tech Is Opinionated
Google has opinions. In the tech world, people take a stand: Google and Apple both expressed strong opinions about how a smartphone ought to operate. Opinionated software is an emerging trend in software tools. Software designers bake their opinions into the tools they create. People who use those tools end up adopting those opinions; if they don’t, the tools become counterproductive, and they are better off using different tools.
There is every reason to believe that Google’s opinion is that the suburbs are obsolete, and that that opinion will inform their strategy for building out a fiber network. Here’s why Google likely believes the suburbs are obsolete:
Suburbs rely on car culture, which consumes time; that’s time that people can’t spend on the Internet, making money for Google.
Suburbs are not energy efficient, requiring lifestyles that generate more CO2 emissions. Google has said it wants to see greater energy efficiency in America.
Google CEO Eric Schmidthas said he wants to see America close its innovation deficit. There’s nothing innovative about the design of the suburbs. It’s a tired model.
Schmidt has supported Al Gore politically and in his efforts to combat global warming. Regardless of what you might think of Al Gore or global warming, we have a pretty good idea what Google thinks of the issue.
Gigabit Fiber in cities could utterly revitalize them. We’ve been looking for ways to fix our cities for the last 50 years. The last renaissance was powered by large-scale economics; a new renaissance can be launched with large-scale communications investment.
Google’s employees are young, idealistic, and believe in self-powered transportation. It’s worth pointing out that the Google Fiber project lead, Minnie Ingersoll, is an avid cyclist.
The Suburbs Are Done
I’ve said it before. So have others. But I’m not promoting that they be subject to some kind of post-apocalyptic ghettoization, either, so calm down. No one’s threatening your commute or your backyard barbecue.
But what I am saying is that at some point we need to take a stand about where we’re going to invest in our future. About where we believe we can regain competitive advantage and efficiency.
I believe our only hope to do that is with smart, well-designed urban cores, connected with world-class communications infrastructure and fast, green, and efficient people-powered transportation. And I think Google believes that too. Bet on it.
Over the last few weeks I’ve been working with Baltimore Mayor Stephanie Rawlings-Blake, a diverse group of volunteers, my friend Tom Loveland (the Google Czar), and other city officials to organize a response to Google’s Request for Information regarding a potential investment of high-speed 1Gbps fiber-to-the-home Internet infrastructure.
Along the way, something remarkable happened.
We laid out a case for Baltimore, and it’s compelling. While other cities have been pulling stunts to try to get Google’s attention, we’ve been assembling a data and fact-driven case for why Baltimore in 2010 is uniquely suited to innovate with the addition of high-speed fiber infrastructure. Google’s corporate culture is famously and relentlessly data-driven. We’ve answered the questions completely, and have highlighted Baltimore’s unique strategic qualifications. We didn’t just stress “how badly we want this,” we built a concise, logical, and detailed case for why Google should want us.
While it’s probably been obvious that we have been working hard and generating press, the public is not aware of our overall strategy, and that’s partly because we have not been able to talk about all of it. Here are some of the reasons why Baltimore can and very likely will win this trial.
Baltimore is unique in that it owns and operates its own expansive conduit system; most cities do not, and this means that Baltimore can deploy a new network faster and less expensively than other cities can.
Baltimore is home to the only philanthropic field office of Open Society Institute, and founder George Soros (the world-famous financier) has pledged to support a Google investment in Baltimore with programs to help alleviate the digital divide. He has urged Google to select Baltimore as the site of this trial, citing the same reasons that Soros selected Baltimore for his philanthropic efforts.
We’re also working with Bob Kahn, co-inventor of TCP/IP to talk about new ways to archive and share municipal data. Mr. Kahn’s counterpart is the other “father of the Internet,” Vint Cerf, who is now a senior executive at Google. And we believe that Cerf will be helping to review these submissions.
We worked with the Economic Alliance of Greater Baltimore, the entity responsible for marketing Baltimore to the business world at large, to shape our messaging and ensure that we had factual economic data. The Greater Baltimore Committee collaborated to align its business members with the effort, securing letters and videos of endorsement from dozens of key large employers.
Last week, the FCC released its National Broadband Plan and one of its authors is a Baltimore City resident. We sought his counsel and advice.
We aligned support of our corporate community, including Under Armour, T. Rowe Price, and dozens of other companies. We received the enthusiastic support of Johns Hopkins University, The University of Maryland System, Loyola University, and a long list of other schools. Gilman School suggested that it could share its K-12 curriculum with the world with the addition of gigabit broadband.
The Space Telescope Institute produced a stunning, compelling video with astronaut John Grunsfeld.
We’re highlighting our burgeoning music and film scenes. In 2008 Baltimore was voted Best Music Scene by Rolling Stone, and the MICA-produced documentary “Music for Prudence” was just awarded an Oscar.
Urban development author James Howard Kunstleraddressed the Downtown Partnership just yesterday, making the case that Baltimore is poised for a population explosion as we enter into an era of urban “redensification.” I share that vision and believe that high speed infrastructure is one of the most important urban design investments we can make today.
In this process, we have articulated a powerful vision for the future of Baltimore, and that vision isn’t going away. We’ve identified our key strategic strengths, and they are the foundations for our shared future. We can’t control whether Google will choose to make an investment here. But that’s not what is most important: we’ve built a case for why we should be investing in ourselves. And that’s a message that resonates with everyone from carriers and broadband providers to prospective residents and businesses.
We have several “aces in the hole,” and our prospects are beyond strong: we’re feeling lucky, as they like to say at Google. But frankly, if Google chooses not to invest here at this time, we should seriously consider making this investment ourselves — the returns would be immense.
I am CEO and co-founder at 410Labs, and creator of Mailstrom. I'm a serial entrepreneur, software developer, and community builder in Baltimore, Maryland, USA.