Please ensure Javascript is enabled for purposes of website accessibility

Instant Analysis: Google Fiber to Launch in San Francisco

By Evan Niu, CFA - Feb 24, 2016 at 1:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Alphabet expands its Fiber footprint.

Image source: Google.

What happened?
Alphabet (GOOG 2.36%) (GOOGL 2.39%) has now announced its next Fiber city: San Francisco. The company says that it will bring its gigabit Internet service to select apartments and condos in the city, and it is already working with property owners and managers to connect the necessary infrastructure.

San Francisco will join other Fiber cities like Atlanta, Austin, Charlotte, Kansas City, Nashville, Provo, Raleigh-Durham, Salt Lake City, and San Antonio.

Does it matter?
While Google Fiber is unlikely to ever represent a meaningful portion of Google's business, Fiber still delivers incredible value to consumers in the markets where it is available. Google says it is now broadening its horizons with the types of cities that it considers for Fiber, as well as different distribution methods. San Francisco is easily the most urbanized Fiber city, and Google will be using existing fiber networks instead of building its own.

Strategically, Fiber represents an important push to make Internet speeds in the U.S. faster and more affordable at a time when the U.S. lags other developed countries on both of those fronts. Google has also catalyzed incumbent Internet service providers into action in those markets, compelling rivals to offer better speeds and lower prices.

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares). Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$121.68 (2.39%) $2.84
Alphabet Inc. Stock Quote
Alphabet Inc.
GOOG
$122.65 (2.36%) $2.83

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
400%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/13/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.