What is Google Fiber worth the attention of operators?

Google knows how to make a sensation in the market. Like its search, Gmail, map, and other products, Google Fiber was impressed by its appearance.

Google's bundling service is very attractive: 1 GB of connection bandwidth, providing users with 2 TB of storage space, allowing users to record 8 TV programs at the same time, at the same time, this service uses Nexus7 tablet computer as the standard Remote Terminal of TV, and is based on the fiber-optic fiber-range hoods). The construction strategy is similar to that of the carrier's fiber-to-house ), you only need to pay a connection fee to enjoy free Internet services. These bundled services are really attractive, and Google also claims to make money by these services.

So many breakthroughs have made Google Fiber not only a learning lab for Google, but also a reference for its competitors. What can operators learn from Google Fiber? In this article, we will look at it.

1. A business model that can make revenue cakes bigger

In terms of bandwidth, cable operators cannot compete with Google, So Google 1 can adopt a "Everything is possible" approach to develop a variety of value-added services. For example, Google + Hangout is played in the living room with a high-definition image. This allows users to quickly upload user-created video content, even if they upload the latest 4K4X1080p video format.

Google Fiber TV may be in Unicast mode, so it will be different from the broadcast mode of TV, more like the click-to-watch mode on the web. This form can play the most effective role of advertising, so it is possible to create a breakthrough TV advertising model.

Google can provide targeted ads from the very beginning. Because of these connection services, Google will get the first account bound with the physical address one day, the operator will regret what it was like ). Imagine if you can provide advertisements for specific neighborhoods and customer interests, load information and comments on Google Maps, or launch Google buy Google Offers on TV) what is the result. SMEs can upload their own video ads to YouTube, and then set parameters to control when to whom to view them. These are just one example of a new business model that Google can develop.

2. Optical Fiber zone business case

Google's method of constructing fiber optics is an alternative. Google asked the community to organize the desired services rather than building as expected. Under normal circumstances, new entrants in the market can earn about 15% of the market share, while Google's self-selection model is doing even better, and it can also cut the construction costs of traditional fiber-to-households. Next, Google will further increase the deployment density. It will provide free 5 Mbps and 1 Mbps services for customers who pay the connection fee of USD 300, so as to prepare for future upgrades.

3. Simple payment method

Carriers of different user groups need to support different billing methods. Therefore, they need to maintain the billing system and payment center, and support all the expected payment methods. According to statistics, 10% of cable subscribers choose to pay in retail stores, and the proportion of users who choose to pay in cash is about 15-25%.

Google only supports credit cards. In this case, Google faces a much smaller user base. However, operators should pay attention to how much Google's penetration rate can be achieved under a limited payment method.

4. Can Nexus 7 tablets increase user loyalty?

Google Fiber TV users use Nexus 7 tablets to control services. Theoretically, this is a "second screen" interface, which can provide a better immersive experience, bring more interactive TV experiences, and thus improve user loyalty. The operator can take a look and see if a device worth $200 has a ROI.

5. Where is Google's program source?

Google Fiber has a single program source and lacks many popular channels such as ESPN, comedy center, and Disney ). In the future, Will Google sign a contract with ESPN to increase the TV package fee by $50? Or are on-demand services provided for these channels? If so, do consumers think that their money is worth something?

6. What kind of customer service support does Google need?

Customer service costs can account for as much as 25% of carrier costs. Google's situation is quite different. This is a brand new in the access field, and because its network is fiber-optic, the "last mile" problem that occupies 70% to 80% of customer service calls is not a problem in Google. However, Google said it would create a call center. It is important for new entrants such as Google to ensure that installation is correct, because complaints about Installation Problems in the first month often flood. The operator can observe to see what Google's customer service support model is and how the customer's response is.