According to Irene Esteves, Chief Technology Officer of leading cable Internet company, Time Warner Cable Internet users do not really need the high gigabit speeds offered by some of the high speed Internet providers of today including Google Fiber.
Making this announcement at a conference held in San Francisco recently, Esteves went on to downplay the significance of creating a competing service for Google. In reference to the mega gigabit speed Internet connectivity Esteves said, ‘We are in the business to deliver what our consumers want and we intend to stay ahead of what we think consumers will really want. Yet we don’t see a need of delivering that to the customers’. She is of the opinion that only business sector subscribers would really need such a high level of bandwidth. She also mentioned that Time Warner Cable had already offered such high speed gigabit connections for a number of business enterprises in their operating markets.
Meanwhile Google has already rolled out the much touted gigabit fiber optic Internet service from the Kansas City during early January this year. However, other leading telecommunication companies including Time Warner, Verizon and the rest are yet to join the status-quo. Verizon has even frozen its pipeline fiber optic service which was anyway more expensive and operated at a lesser speed than Google.
According to analysts, the reluctance to join the gigabit market has a lot to do with the lack of subscriber demand for such high level speeds than the companies’ intention to protect their high margin broadband markets. About 97% of the profits of Time Warner Cable are derived from its existing services and other companies like Verizon are focusing energies on the wireless broadband technology with its enormous money making potential for them. With some of the startups in the Kansas City exploring the benefits of gigabit consumer applications including streaming media and gaming it seems that consumer demand for extensive bandwidth may also increase in the near future. Meanwhile many communities have expressed dissatisfaction on the delay made by both telecos and Google in introducing faster Internet speed solutions in their areas. Some are already building their mega gigabit speed municipal networks like in Chattanooga and Louisiana.