Google’s Free WiFi Strategy
Those who take the subway New York City may have noticed free wireless signals popping up. In addition, residents of the Chelsea neighborhood may also have noticed that Google seems to be offering free wireless connections as well. As a result, many residents are wondering if here is a catch; what is Google’s motivation? While it may seem counterintuitive initially, there are some valid reasons why Google may want to offer free internet access.
- Low cost
Internet bandwidth has become far cheaper in recent years. While Internet bills remain roughly the same as they did five years ago, the cost of delivering data has dropped dramatically. In addition, Google has installed a considerable amount of fiber optic cables, which can deliver a tremendous amount of data at little cost. Much of the backbone of the internet remains unused, and the cost required to offer free Internet access to large areas is lower than most might imagine. For Google, which utilizes the latest and cheapest in internet connectivity technology, the costs are even lower.
- How Google makes money
When trying to understand why Google offers free internet access, one must consider how Google makes money. Google places ads next to their search engine results, and their powerful pay-per-click advertising paradigm has led them to become one of the most profitable technology companies in the world. In addition, Google’s ads run on websites, and much of the revenue comes from clicks on them as well. As a result, Google makes money when people use the internet. If those waiting for the subway in New York City have Internet access, they are likely to click on a Google ad in the process. Since the cost of installing wireless network infrastructure so low, the venture may be profitable for Google.
- Future plans
In addition, there are indications that Google may seek to diversify their offerings in the future. With the introduction of the Nexus 4, Google has shown that they are looking to sell affordable cell phones. These cell phones, however, still require mobile network connections. With Google Voice, however, Google has the infrastructure and capability of routing phone calls through the internet instead of through a cell phone network. If internet connectivity is ubiquitous in cities, users may be willing to abandon traditional cell phone plans and switch to Internet-only cell phone plans. Although other companies like http://www.clearwirewimax4g.com/ have tried city-wide internet access with some success, Google really holds the keys to making it truly profitable by combining with a mobile phone service. With their recent acquisitions, Google may be interested in becoming provider of cell phone plans. Widespread internet connectivity would help them achieve this goal.
- Low-cost internet access in New York City?
Kansas City residents have responded positively to Google Fiber. For users who are satisfied with typical internet speeds, Google offers free internet access. Those who want significantly faster speeds can pay $70 per month for 1 Gbps speeds. In addition, Google can deliver television services for $120 per month. These plans have proven tremendously popular, and some are wondering if Google wants to offer Google Fiber in New York City. Most, however, believe that Google will focus on smaller metropolitan areas before making the jump to the Big Apple. The cost and logistics of offering Google Fiber in New York City would be tremendous, and small mistakes can lead to significant losses. That said, Google is known for making bold steps, and bringing Google Fiber to New York City which show that they are serious about being a major player in the internet service provider realm.
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