Google Fiber Gets Even More Disruptive, Adds Wireless Wallop with Webpass

Erik Keith - Principal Analyst, Fixed Access Infrastructure

Erik Keith – Principal Analyst, Fixed Access Infrastructure

Summary Bullets:

  • The acquisition of Webpass showcases Google Fiber’s strategic focus on fiber-centric service expansion efforts in high-density areas, supplemented by wireless broadband technology which dramatically expands Google Fiber’s addressable market and its status as a broader-scale, highly disruptive threat to incumbent operators.
  • Webpass lacks substantial customer traction – only 20,000 subscribers – especially for a company in business for 13 years. Nevertheless, Google Fiber’s acquisition of Webpass is more about future promise and potential than current power and presence.

Google Fiber’s recently announced acquisition of Webpass, which we covered here, is a clarion call signaling the company’s intentions of becoming an even more disruptive force in the U.S. broadband and TV/video/multiplay market. While there are roughly a dozen operators in the U.S. that offer world-class fixed broadband services – specifically, Gigabit access speeds – a massive number of U.S. consumers and business customers are still underserved by broadband, in terms of service speeds (i.e., well under the FCC’s definition of 25 Mbps), lack of competition or both. To this end, and expanding on its non-traditional approach to broadband network and service buildouts, Google Fiber has acquired Webpass, a wireless broadband service provider with fiber assets that has an established network and customer bases in the San Francisco Bay, San Diego, Chicago, Miami and Boston metros. Read more of this post