Complete Story
08/31/2016
Google Fiber Has Been a Huge Disappointment
When Google Fiber launched about six years ago, management projected that it would reach 5 million subscribers within the first five years. After launching its first official location -- Kansas City -- in 2012, management said that Google Fiber was a viable business model. Former CFO Patrick Pichette told analysts on its fourth-quarter 2012 earnings call that Google Fiber is not a hobby, and that it should be a good business.
But two years later, Fiber only had about 200,000 subscribers, according to The Information. And while it doesn't know the exact count today, it's still well below the 5 million subscriber goal Google initially laid out, according to The Information's report.
Fiber is now called Access and is part of Alphabet's (NASDAQ:GOOG) (NASDAQ:GOOGL) Other Bets segment. Alphabet CEO Larry Page reportedly ordered the division to cut its workforce in half, to 500 employees, while cutting customer acquisition costs to just 10% of its current run rate.
