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  • Google Fiber "isn't just an experiment, it's a real business and we're trying to decide where to expand next," says Eric Schmidt. Google's (GOOG) $70/month, 1Gbps, Kansas City service has won plenty of fans, and seems to have tapped a groundswell of frustration towards the offerings of phone/cable duopolies. But the costs of any large-scale launch would be enormous. Schmidt also declares Android is winning the smartphone wars. From a unit share standpoint, he's right, though profit share is a different matter. [View news story]
    Dark fiber is primarily inter-city and not FTTH fiber which needs to be laid in neighborhoods to pass homes. Dark fiber assets would help Google in their metro and longhaul, not reduce costs per home passed for FTTH
    Dec 13, 2012. 08:02 AM | 1 Like Like |Link to Comment
  • "We all live in an ATTizon duopoly now. And they will do with us what they please," writes Tero Kuittinen after looking at Verizon's (VZ, VOD) shared data plans. He sees the plans, which increase the minimum a smartphone user looking to upgrade has to pay to $90/month from a current $70/month, as an attempt to prevent voice/text revenues from being eroded by mobile apps (previous), and thinks they're fueled by a belief "Sprint and T-Mobile are now so weak they offer no effective competition." (also)  [View news story]
    This is an inevitable development. Voice service is much more profitable on a $/ Mb basis than data. As 4G LTE is rolled out and Voice over LTE becomes ubiquitous the service providers stand to lose their voice revenue. Since voice will be just an app on the data only LTE network, the service providers have to increase data rates by any means - shared buckets, unlimited voice (within your data bucket) etc to make up for the lost voice revenues. They will eventually charge based on apps but that is far away as it means monitoring each session to identify the session type and charge accordingly, too expensive to implement as yet. The service providers are trying to maximize their share of your telecom $ as any rational business would.
    Jun 12, 2012. 03:08 PM | 2 Likes Like |Link to Comment