Alphabet Wants Fiber Costs To Cut By One-Tenth
Alphabet wants Google Fiber to reduce cost and as an aftermath focus is now on wireless technology instead of offering gigabit internet speed through cables.
Google Fiber is currently called as Access.
Alphabet CEO Larry Page has demanded to reduce the costs to one tenth and Fiber chief Craig Barratt has been asked to cut the workforce for the unit about fifty percent.
Currently the Fiber unit has 1,000 people working and if the order is implemented the workforce would be reduced to just 500 heads.
Fiber was once Google’s most ambitious projects similar to the self-driving car project, but lately it has been realized immense resource investment has been made so far and fate of it is uncertain as lower-cost equipment and less employees are now being focused.
By the end of 2014 only 200,000 subscribers have signed up for Fiber even though 5 million subscribers were estimated by the end of 2015.
Currently Fiber is made available in seven metropolitan areas in the United States and sixteen more cities will be included.
Meanwhile, Alphabet CFO Ruth Porat said the Fiber business model is needs more time, but the big boss is a bit discontent about its future.
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