Beehive Broadband has big broadband dreams. After rolling fiber in their native service areas in Tooele County (even into the spec of nothingness that is Grouse Creek) and hitting downtown SLC with fiber rings, they’re now making a push to bring gigabit fiber into The Avenues neighborhood of Salt Lake City. Pricing is targeted around $40-50/mo for 100Mbps and $70 or so for gigabit with an install fee in the $100-200 range. They’ll also be offering up phone and TV service for those so inclined.
The strategy is simple: build fiber to commercial buildings, then target neighborhoods nearby to bring it to the home. If this sounds familiar, it’s because CenturyLink said they would do the same thing, yet they seem to be very slow to follow up on it. Beehive is also evaluating using this plan in many other cities including Draper, Herriman, Holladay, Riverton, and Lehi. Right now, they’re looking primarily at areas that are being ignored by Comcast and CenturyLink.
So what about Google Fiber’s entry into SLC? Beehive is taking a “first to market” approach and plans to start hooking people up as early as mid-January, well before Google will turn over a single shovel of dirt. They’re also planning to make service available to all addresses in the footprint, something Google hasn’t done once their initial “fiberhood” signup period closes outside of a few exceptions in Provo. My take is that this is going to be a more successful strategy that could stymie Google’s efforts to break into that neighborhood.
If you get signed up on this service, let us know in the comments how it works out.
Google Fiber has managed to keep people excited for quite some time now. Dozens of cities did everything from present solid cases for building there to engaging in wacky stunts (like swimming in frozen lakes) to try and get the attention from the Mountain View company. Even after selecting Kansas City, MO (and a number of its surrounding suburbs) as the site for their build, many cities keep on insisting that they can somehow catch the Internet giant’s attention and score their own golden ticket. Make no mistake: I compare it to the prize bestowed by Willy Wonka because it’s just about as likely to happen.
Far too many people lose sight of what Google really is: an advertising company. Everything they do is centered around the idea that they can sell advertising. In the process, they create really awesome tools that get eyeballs. Google’s search product is still the gold standard. Gmail is more popular than any other webmail product. Android displaced everything but the iPhone to fight for the number one smartphone platform. What do these all have in common? They increase your exposure to Google’s ad platform, but they don’t incur a significant cost to do so. Even Google’s self-driving car is an attempt to free up commute time for, you guessed it, looking at their ads. This is why Google makes money hand over fist.
The question that should be asked is how Google Fiber fits into this mission. Yeah, it kind of encourages you to spend more time using their services, and it does create a way for them to directly sell TV advertising, but the capital costs of fiber are huge, especially when using active Ethernet. Google is on-track to make somewhere in the range of $12B+ in profits this year. The cost of deploying fiber optics nationwide is somewhere in the $300-400B range, and it runs an average of around $1500-2000 per served home. That would be a huge investment into a venture not guaranteed to break even. The history of overbuilders is littered with failed companies. Google in unlikely to sink a significant portion of its revenues into additional buildouts, so the odds of your city getting a break are pretty slim.
And that’s the point. Google isn’t going to build in cities that beg louder and more often. Heck, they might not build in any more cities at all. It selected Kansas City because there are major backbone fiber routes there (Sprint has its HQ in neighboring Overland Park, KS) and the city could provide expedited right-of-way. Does your city meet those criteria? Probably not. In fact, your city is probably only saying “but we really REALLY want it” and hoping that’s enough. Well, it’s not. Kansas City did the work to create an environment Google would want to sink their dollars into. What has, say, Lehi done? Arguably nothing but get their begging published in the Daily Herald.
That’s the lesson to be learned: if you actually want a fiber network, you’re going to need to do some work. By the time you’d be an attractive target for Google Fiber, you’re about 90% of the way towards building it yourself, either as a co-op or a municipal network. At that point, do you really want to spend years or decades hoping that Google or another company will do for you what you could do for yourself?
Remember how Broadweave was operating without a business license in any city it did business in? It seems that despite having gotten licensed to do business in South Jordan and Provo, they still can’t get their ducks in a row in Washington City. Company lawyer Jay Cobb said that Broadweave through they had the matter taken care of yet when I spoke to the city recorder in May, she claimed that Washington City had been trying for months to get Broadweave to take care of its business licensing issues without any success. I suppose we shouldn’t be too surprised at a lawyer who bends the truth.
I did a bit of checking on my own and found that that Broadweave still continues to operate in Lehi without a proper business license. I guess they’re too busy in Provo not fixing the program guide and not adding new VOD options to take care of that.