Google has suspended plans to rollout their high-speed internet service Fiber in 10 major US cities, with around nine per cent of Fiber staff expected to be laid off in the affected cities.
Cities including Los Angeles, Chicago and Portland are among those who will no longer receive the company’s high-speed internet which offers up to 1,000Mbps speeds for about $92 a month.
Google Fiber CEO Craig Barrett discussed the rollout pause in a blog post, announcing he would be stepping down from his position to an advisory role.
“Now, just as any competitive business must, we have to continue not only to grow, but also stay ahead of the curve — pushing the boundaries of technology, business, and policy — to remain a leader in delivering superfast Internet. We have refined our plan going forward to achieve these objectives,” Mr Barrett said.
Reports suggest Google Fiber is evaluating alternatives to installing expensive physical fibre lines after subscriber numbers did not meet expectations. The subsidiary of Alphabet acquired wireless ISP Webpass at the start of October, which may provide some insight into future plans for the service. Webpass currently offers gigabit wireless internet plans to residents and businesses in six cities.
The news does not effect cities where Google Fiber is already available, or cities where Google has made commitments to build.
