Why The Acquisition Of WebPass Could Be Significant For Google Fiber?
Recently, Alphabet Inc.’s (NASDAQ:GOOG) subsidiary Google Fiber announced that would acquire Webpass, a 13 year-old company that focuses on providing high speed internet connections for residential and commercial buildings in the U.S., primarily using point-to-point wireless technology. This acquisition is in line with the company’s strategy to focus on new, cheaper wireless technology to beam high-speed internet to people’s homes. This acquisition gives Google Fiber access to a new wireless technology that aims to radically change the way internet is delivered. WebPass is helping to test a technology called “pcell”, which is a wireless antenna personally assigned to a user. By installing these antennas in buildings where Webpass provides broadband services, the company can significantly improve connectivity on wireless devices. Alphabet is working towards building better internet connectivity, which is crucial for its business and that of its competitors. Facebook, Amazon Web Services and others are working towards a similar goal. Accordingly, the acquisition of WebPass can give this initiative a boost and enable Google Fiber to expand at a rapid pace.
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Rapid Expansion Of Google Fiber
Webpass is active in five major areas in the U.S., including the San Francisco Bay Area, Chicago and Miami. The company already has more than 20,000 customers. The acquisition of WebPass provides a boost to Google Fiber’s expansion plans in the Bay Area and gives it a competitive edge over cable broadband companies who usually provide broadband access to consumers in large apartment buildings in this region. While penetrating this market was tough for Google, Webpass’ technology makes the company a strong player in this space. Google started building its fiber network in 201. However, expansion has been relatively slow as building a fiber based network is expensive and time consuming. On the other hand, point-to-point wireless connections (the technology of Webpass) uses high frequency spectrum or air-waves that can deliver high speed access at a fraction of the cost and takes only days rather than weeks to set up. This can ensure the rapid expansion of Google fiber especially in urban areas.
Better, Faster Internet Critical For Google’s Business
Google is working on providing better internet connectivity to users, especially in emerging economies. Making internet access better and faster for a larger community of users is critical for Google’s business. Moreover, access to technology that enables the company to meet this goal provides a long term benefit. Competitors such as Facebook are also working towards this goal. Facebook recently hired a former Google Fiber executive to help the company make infrastructure deals for its connection efforts. While the acquisition of Webpass will currently support Google Fiber’s expansion efforts in urban areas in the U.S., the company can build on this technology going forward, which can act as an enabler for its better connectivity efforts globally.
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