What is the secret of Google's $70 per month?

$70 per month, which is the cost paid by a Kansas user for Google Fiber's Mbps network service.

Many may curse large telecommunications companies such as Time Warner Cable and Comcast's largest cable system company in the United States. They rely on the monopoly of the telecommunications market to accept money. More people will be confused about the question: How does Google provide Mbps network services at such a low price?

Chattanooga previously created a high-speed network similar to Google Fiber, with a minimum price of up to $350 per month. Other regions that provide similar services are generally charged at over $10 thousand per month.

What is Google's secret?

Milo Medin, head of the Google Fiber program, likes to put this sentence to the mouth: "No one can transmit data over the Internet at a lower cost than Google ."

Because Google built a wide and incredible fiber network. It does not rent services and network nodes from large telecom companies like other Internet companies. Self-built networks give Google more control over technology and price. Fiber optic networks directly open a street with wire companies that are still using older generations of technology equipment. Old telecom companies will inevitably be shackled inside and outside when they rebuild such a huge old network, but Google will not.

So why can't they still provide low-cost and high-speed network services for some of the optical fiber networks that have already been set up, such as the Lafayette area?

Suppose that the town you live in, for example, chinware has built an optical fiber network, and residents in chinware have almost no money to transfer files to each other. In addition to the initial investment in building the network, the rest is the cost of driving the laser to transmit within the fiber and maintain the operation of the router. In other words, a LAN-type Mbps network service is not a problem at all. However, if users in chinazawa want to connect to the Internet, such as watching a video on YouTube, they will be charged for an additional fee, for example, you need to pay for Level 3 or other global network operators to access YouTube.

The charging standard of Level 3 is very interesting. It is not billed based on the user's traffic strictly, but needs to set a network speed quota in advance in porcelain town. The higher the quota, the lower the unit traffic fee, for example, if the bandwidth is 1000 Mbps, the fee is 7 USD per Mbps. If the bandwidth is upgraded to Mbps, the fee is only 5 USD per Mbps.

The limited quota can only determine the price of traffic per Mbps. For actual payment, refer to the peak network speed of porcelain town. For example, the quota I set to Level 3 is 500 Mbps, and the fee is 7 USD per Mbps. The actual monthly payment does not matter with the total monthly traffic, but the 95% traffic fee for peak network speeds, if the peak value is 1000 Mbps, the fee is USD 1000 * 95%.

At this time, you will regret why you didn't talk about setting the quota to 1000 Mbps. Of course, China porcelain town's network management system is not vegetarian, they will adjust the peak network speed through the router, the cost is that the town's user experience network speed is greatly reduced.

Another feasible solution is to find the Internet bosses to "integrate ". For example, if Google can be directly connected to the Intranet, all traffic to Google will be free of charge. Google accounts for 6% of Internet traffic. Cooperation with such giants can significantly reduce the peak network speed and thus reduce the fees to be paid.

Google has incomparable advantages in both content and networks. Anyone who wants to access other services of YouTube and Google for free or at a low price, in addition, Google is also associated with major global nodes on the hardware network. Currently, only a few companies that can achieve this scale are mentioned above, such as Time Warner, Comcast, and AT&T. However, these companies cannot find a reason to invest in new network facilities, because almost all users are at their disposal.

Although completely copying Google Fiber is almost impossible, it is not difficult to achieve high-speed networks like Chattanooga and Lafayette. Maybe starting from the community and gradually expanding to the global market is also a feasible path.