Google’s (NASDAQ:GOOGL) New Venture


Google (NASDAQ:GOOG) offers for its customers not just the speed on Fiber as compared to its competitors, but also additional benefits. Its competitors like Comcast (NASDAQ:CMCSA) and Time Warner (NYSE:TWC) seem to have been left behind in this race for providing better customer services. Ever since the launch of Google (NASDAQ:GOOG) Fiber back in 2010 and its attempt to cater to selected markets, the cable industry adjusted to delivering faster speeds at lower costs and continued to do so for years. But finally, Google (NASDAQ:GOOG) took measures to change this strategy along with introducing fibers to small and medium sized businesses.

According to analysis, Small Business Administration or SBA makeup around 28 million small businesses throughout the US. Catering to half of the private sector jobs and providing 60% increase in employment opportunities, making it pretty obvious that the SMB industry is huge with a huge potential. Google (NASDAQ:GOOG) has the advantage of entering into the market before Comcast (NASDAQ:CMCSA) and Time Warner (NYSE:TWC). The sort of noise Google (NASDAQ:GOOG) is about to make, it can convince business hubs within the Kansas market to fire their internet providers, even if they decide to match Google (NASDAQ:GOOG).

Google (NASDAQ:GOOG) Fiber has one more trick up its sleeve, its cloud services. Even though businesses don’t have to avail the cloud services, Google (NASDAQ:GOOG) still believes it’s a strong player and could even be considered a game changer for Google (NASDAQ:GOOG) in terms of revenue. Along with Google (NASDAQ:GOOG)’s plans for multiple price cuts.

Introducing Fiber to SMBs opens the door to many up-sell and cross sell opportunities. Cloud services playing a vital role in this scenario. As competitors can do all they want but they can’t match Google (NASDAQ:GOOG)’s cloud service. But the competitors aren’t giving up that easily, according to Brian Robert, the Comcast CEO, time will reveal that fiber won’t have enough demand for Google (NASDAQ:GOOG) to cater too and Comcast (NASDAQ:CMCSA) will provide businesses all other solutions with its extra fast internet connection.

These lines were somewhat similar to the remarks made by Time Warner (NYSE:TWC) CEO, Robert Markus, 2 years ago. He emphasized that if the need for fast speed ever arises, the company will be at its toes to deliver it. But both the companies made no effort to actually translating their statements into actions.

So it seems that the growing popularity of the Fiber will eventually open new doors for Google (NASDAQ:GOOG) along with new obstacles. One of which is to get approval from cities throughout the US and then getting started on the installation process, making it effective and efficient. Next is the issue of laying down pipes for miles in an effort to bring the fiber to the masses.

But all this outweighs the benefit the Fiber will bring. These include faster and cheaper options for cable alternatives. Regardless of what competitors say, Fiber is the way forward in the US market and now even the Small Business setups have started to consider use of Fiber.