Google Fiber is great, nobody is arguing that . . . But The Wall Street Journal mythbusts hype from the local biz community and reveals that Kansas City is still missing a key ingredient in most start-up hotbeds: ample early-stage venture financing.
Unfortunately and contrary to pr and marketing hype . . . The horrifically increasing tax burden, bad schools and violent crime threaten to kill business both big and small in Kansas City while the Mayor and Council remain more interested in garnering puff pieces from the press and catering to special interests.
Unfortunately and contrary to pr and marketing hype . . . The horrifically increasing tax burden, bad schools and violent crime threaten to kill business both big and small in Kansas City while the Mayor and Council remain more interested in garnering puff pieces from the press and catering to special interests.
They're right.
ReplyDeleteGo to KC and get:
1) Fuck over by City Hall Like the Taxpayers;
2) Get Fuck over by street thugs the sibling of City Hall employees.
3) It's called "double penetration"
getting screwed over by first generation City Hall or the second generation City Hall who don't know the names of their Fathers.
Fuck Tony, you bitch about taxes and tax credits but this article is all about getting angel tax credits from the state. Do you even know what those are? Its painful how dumb you are.
ReplyDeleteAngel tax credits ---
ReplyDeleteMeans fucking the poor for the poor.
Not the rich for the poor.
Face it, Kansas City is a nice place to be FROM!
ReplyDeleteThe Free Model
ReplyDeleteThe most troublesome aspect about Google Fiber is its promise to the media that its free service won't be loss-making. In one of her articles, GigaOm reporter Stacey Higginbotham notes a Google executives' remarks:
... the $300 initial connection fee will cover the costs associated with the deployments - it's not doing that at a loss either.
This is either a miraculous achievement or an omission of facts. The physical cost to make a home plug-and-play ready with fiber optic wires (the so-called Cost per Connection, CPC) to provide services is not going to be covered by a one-time $300 fee. I wish it could be, but reality shows it cannot be done (see section Financial Analysis, below). Plus, the free service is guaranteed for seven (7!) years, which implies that its operation costs (including help-desk etc., and -if you want- the price-per-megabit) is included in the one-time $300 payment.
Notwithstanding the profitability aspect, it is a genius strategic move by Google to offer the "common" speed on competitive systems for free at $300. It has at least a three-fold benefit:
The equipment is basically subsidized by the customer (it gives them a psychological connection as to the value of this otherwise free service);
The free service allows for a massive take-rate. People understand that their $300 investment boils down to just $3.50 per month (84 months/ $300) to get 5 Mbps;
Customer loyalty: Google creates great goodwill, and when the customer is ready/willing to make the transition to the bundled Google Fiber service, they will become locked customers- a money-printing machine for Google for decades to come (if done correctly by Google).
Notwithstanding the seemingly fantastic offer (what can be better than free?), there are some potential downsides too.
Google offers people to pay in installments of 12x $25, which on one side means that the connection fee can be paid over a full year, but on the other side it means that people are effectively paying $25 p/m for just a 5 Mbps connection;
Google's decision making process in this affair must have been based on the hope that these people will migrate to their more expensive services.
Thus, if the competition is smart, they will beat Google to this with a similar offer, and throw in something in the mix for the other 6 years. If their lives depend on it, these competitors with deep pockets will not just roll over and die. Assuming so is just wishful thinking on the part of Google and its enthusiasts.
No, they'd still be paying #3.50 per month for 5 mbs. I'm paying $20 for less than 1 mb.
ReplyDeleteGoogle CAN'T save Kansas City from itself and the cannibalization being inflicted from the east side denizens. As Rambo said: "Just let it go, let it go!"
ReplyDelete