 Google Fiber, a subdivision of Google Access, announced a pause to its fiber
optic installation project in Chicago Oct. 25. The pause is part of plans to cut
staff 9 percent across the country in order to rethink and reorganize its
efforts to bring high-speed internet to the largest cities of America, according
to Ars Technica.
The scale-down comes at the advice of Larry Page, the CEO of Alphabet, Google
Access’s parent company. Page gave Craig Barratt, Google Access CEO, the
recommendations to cut back on expenses in an August meeting over the future of
Alphabet’s internet installation plans, The Information reports. In addition to
the staff reduction, Barratt will also step down as CEO, but stay on as an
advisor.
Google Fiber embarked on its fiber optic quest five years ago when it announced
it would bring high-speed internet to Kansas City, Mo. The project was largely a
success, creating several “fiberhoods” in Kansas City and the surrounding
suburbs. Since the initial success in the City of Fountains, Google Fiber set an
ambitious goal of building the fiber-optic groundwork in several cities and the
possibility of building in places Google Fiber has deemed “potential cities.”
Chicago was one such “potential city.”
Barratt explained Google Fiber’s future in these “potential cities” in a lengthy
blog post:
“In terms of our existing footprint, in the cities where we’ve launched or are
under construction, our work will continue. For most of our ‘potential Fiber
cities’ — those where we’ve been in exploratory discussions — we’re going to
pause our operations and offices while we refine our approaches. We’re ever
grateful to these cities for their ongoing partnership and patience, and we’re
confident we’ll have an opportunity to resume our partnership discussions once
we’ve advanced our technologies and solutions. In this handful of cities that
are still in an exploratory stage, and in certain related areas of our
supporting operations, we’ll be reducing our employee base.”
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 Chicago has been bumped from the list of potentials and moved to
the category of “Webpass Cities.” The name refers to a wireless
internet service provider called Webpass, which Google Fiber
acquired in October. Chicago, along with San Francisco and San
Diego, will not have fiber optic installation, but may still have
high-speed internet. The main difference is the lack of actual fiber
optic installation in favor of a wireless approach which may save
Google Access millions of dollars in construction costs.
So while Chicago may miss a much-wanted influx of cash in
construction around the city, Chicagoans’ hopes for
Alphabet-provided high-speed internet may still be viable. However
the tradeoff will come at a cost: The wireless approach will provide
fiber optic-like internet speed for multi-residential apartment
buildings and businesses, but may not be cost effective for
single-family, suburban homes, Ars Technica reports.
This internet installation would be a boon for Chicago, which is
quickly becoming one of America’s leading tech-hubs. However the
city’s underlying problems still cast a dark shadow over the
prospects of future investment from tech companies. With rising
property taxes, water taxes, employee compensation costs and no real
attempts at reform, Chicago has put itself at a competitive
disadvantage with other cities. The need for pro-growth reforms is
more imperative than ever, especially with companies like Alphabet
watching.
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