Study: Market ‘Too Dismissive’ of Google Fiber

While it remains questionable as to whether Google Fiber can scale up its network deployments and put the hurt on incumbents over the long term, a new study from Bernstein Research suggests that Wall Street “is too dismissive” of the initiative's true potential. “We have increased conviction that Google’s main motivation to deploy Google Fiber is its belief that it has a better-than-good chance to build a profitable local-access competitor,” Carlos Kirjner, a senior analyst with the firm, noted in a study.

He also reiterated his view that Google Fiber’s primary aim is not to influence policymakers or to force cable operators and telecommunication companies to accelerate upgrades, but does acknowledge that incumbents such as AT&T, Comcast, CenturyLink and Cox Communications have moved ahead with targeted fiber-based gigabit offerings.