From the official Google Blog, Google is tossing around the idea of providing gigabit lines to the home and is actively searching for trial markets. This makes for very exciting news because it will bring down the last bastion of deceit from Verizon, Comcast, Time Warner, and Cox. No longer will we be subject to the painful advertisements of the big 4 stating how modern and high speed a 20 megabit link is. Nothing can be further from the truth – Japan has been doing gigabit fibre to the home since 2001. The GOP is largely responsible for the reason for us being so far behind because they tacitly allowed the big 4 to engage in price control collusion and halted mandates to provide broadband in rural areas. Now that the GOP does not hold the lion’s share of the control, we can expect to see some fascinating things in technology.
We began to see a dramatic balance of power shift back to the consumer in the beginning of last year with wireless telecommunications. A prepaid carrier with the humble name of Boost Mobile, dropped a thermonuclear warhead on the cellular industry with its announcement of a 50.00 unlimited calling plan. The announcement literally triggered a pricing war driving costs down and forcing carriers to innovate or die. Suddenly, we see a flurry of activity to upgrade underserved areas to 3 and even 4G to try and stem the tide of losses to a burgeoning prepaid industry. Now, it would appear broadband is following suit. If the big 4 telecom oligarchy does not want to provide modern speeds, Google should be able to turn the industry on its heels. The current broadband infrastructure is based on antiquated technologies and we are up against its technological limits. Rather than innovate, the big 4 decided to simply to employ odious techniques for bandwidth management thereby squeezing even more blood from the stone that is the existing infrastructure. With its financial prowess and access to the market, Google will rapidly force the market to innovate and drive prices down. A new competitor in the ISP market is just what is needed to bust open the Telecom Oligarchy.