Just as we were getting ready to push out Derek’s post about broadband competition, it looks like Google tossed a bit of a grenade into the mix, announcing plans to at least start trials of super high speed fiber-to-the-home networks in some areas. Of course, there have been rumors for years that Google might get into the internet access business. It had invested in a failed broadband-over-powerlines operation, and there had always been talk of a Google wireless solution — but none of those seemed particularly serious (even Google’s muni-WiFi experiment in its hometown of Mountain View has been somewhat half-hearted). So, it might be a bit early to look to Google to really dive in as a serious broadband competitor, but it certainly does raise some interesting questions.
From the very beginning we’ve been arguing that the real issue isn’t about net neutrality, but about competition — a point Derek reiterated — and anything that drives more competition in the broadband space is a good thing. And, since Google monetizes internet access in many other areas, it doesn’t need to be greedy about how it grants access to the pipes. But, even more interesting is that Google seems to realize that if you have a fiber to the home network at the infrastructure-level, the really interesting play is actually letting multiple service providers compete above that:
We will allow third-parties to offer their own Internet access services, or other services, using our network. We believe this approach will maximize user choice as well as spur greater innovation and competition. Most providers in Europe and many places elsewhere in the world operate open access networks. It will be open to any service provider, including incumbents and new entrants. “Open” means open.
By no means is it guaranteed that Google will be able to succeed in this market. In fact, I’d probably bet against it if you were laying odds. It’s just a really tough business to be in, especially as a brand new entrant, and I’m not convinced that Google will focus enough on this to make it a success. But I hope I’m wrong. More serious entrants into the market would be a good thing, and Google’s view on line-sharing is exactly right: it does tend to encourage greater innovation. So hopefully this is something that works in trials and gets expanded more widely.
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