Google Fiber’s struggles highlight value in using existing dark, shared fiber assets

Google Fiber's move to delay certain fiber-to-the-home (FTTH) builds may have sparked concern from industry pundits that the service provider is turning its back on fiber, but these moves actually allow it to consider a new strategy: sharing dark fiber networks. Besides using millimeter wave wireless as a way to scale its network reach, leasing dark fiber from a host of other providers or even local municipalities that have laid fiber for their own internal use, is a palatable solution to scale its network.

“Given the large capital requirements and above outlined challenges of fiber network builds, we believe that companies are increasingly utilizing shared dark fiber as a way to achieve better economics on planned expansions,” said Barlays in a research report. Google Fiber indicated its desire to seek out alternatives after a recent report emerged that the service provider’s planned buildouts of 1 Gbps in San Jose (CA), Mountain View (CA), and Palo Alto (CA) are on hold. While leveraging millimeter wireless is a less expensive alternative to wireline internet service, the service provider can also tap into a bevy of dark fiber networks being built in a number of US cities. Google Fiber purchased Webpass, a competitive provider that provides Ethernet-based services to businesses using a mix of fiber and broadband wireless technologies to deliver broadband services to businesses and residential customers.