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The Cost Of Building Google Fiber

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Jay Yarow notes how inexpensive it is for Google to build Google Fiber:

The lucky people in Austin, Texas are about to get Google Fiber, Google's revolutionary cable service.

Austin would become the second part of the country to get Google Fiber. It's currently offered in Kansas City, Missouri and Kansas City, Kansas.

How much is Google Fiber going to cost Google? Last December, Goldman Sachs estimated it would cost $140 billion to cover the entire country. While we in New York City dream of getting Google Fiber, odds are that Google isn't going to cover the entire country, so it's not going to cost that much.

Today, Bernstein analyst Carlos Kirjner has a report on how much Google paid for Fiber installation in Kansas City, and how much it might cost in Austin.

He estimates Google's total cash investment in Kansas City will be $94 million in 2013. For a company that generates over $4 billion cash every three months, it's not a lot of money.

To build out the network in Austin, the cost per household will be similar to Kansas City, says Kirjner.

We'll use Kirjner's tables to break down where the money goes, what customers get, and then at the end, his thoughts on why it makes sense for Google...

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This is awesome. I want Google Fiber for my area!

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