Google Fiber's L.A., Chicago plans show it's serious about network expansion, Wells Fargo says
Google Fiber's (NASDAQ: GOOG) ongoing buildout of its 1 Gbps-capable FTTH service in six metro areas and exploration into entering Los Angeles and Chicago is a sign that the service provider is looking to make a larger impact in the broadband market, says Wells Fargo in a research report.
In December, the service provider announced that it at it sees Chicago and Los Angeles as two potential service rollout targets.
What's significant about these markets is their sheer size. The two cities combined are the home to 6 million people, making them the two largest metros Google Fiber has talked to about building out service.
Another positive sign for Google Fiber is that it also named Gabriel Stricker as Head of Policy and Communications, who returned to the company following a stint at Twitter. In his new role, Stricker will oversee Google Fiber's communications and public affairs.
"We believe this announcement, along with the appointment of Google executive Gabriel Stricker as Head of Policy and Communications for Google Fiber, are indications that Google is getting more serious about its fiber expansion," said Jennifer Fritzsche, senior analyst, a research report.
Besides Chicago and Los Angeles, Google Fiber said in September it was talking to Louisville, Ky., and San Diego. Later in October, it cited Oklahoma City, Jacksonville, and Tampa as three other potential targets.
Previously, it began construction in eight other markets -- including Austin, Texas, Provo, Utah, Kansas City, Kan., Atlanta, Salt Lake City, Raleigh/Durham and Charlotte, N.C., and Nashville. It also has other expansions planned for Phoenix, San Antonio, Portland, Ore., and San Jose.
An additional potential beneficiary of Google Fiber's planned fiber build could be network construction company Dycom, who is rumored to be one of its customers.
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