I am absolutely ecstatic that Google is attempting to build the next generation wired network.
Why does this matter? Well owning the pipe is always a good move especially in the face of net neutrality. But there are all sorts of other tie ins. For one, payments.
Our current payment infrastructure is based around private leased lines. If you really wanted to take on the payments industry you have to start with the infrastructure. Otherwise you are always at the mercy of a credit card processor just shutting you off. When you own the network where the transactions actually flow it is a different story.
Our current payment infrastructure is based around private leased lines. If you really wanted to take on the payments industry you have to start with the infrastructure. Otherwise you are always at the mercy of a credit card processor just shutting you off.
Umm..
Credit card processors have other, more obvious ways of shutting you off that taking away a leased line.
The leased lines used for credit card processing are such a minor factor that you can pretty much ignore it. Yes, it is a weird way to do it, and no, if you were building a replacement you wouldn't use leased lines, but that isn't what is holding back payment technologies.
If you really wanted to take on the payments industry you have to start with the infrastructure. Otherwise you are always at the mercy of a credit card processor just shutting you off.
Today Google Wallet is at the mercy of credit cards, but in the future... people will pay their Google Fiber bill with credit cards. I don't see where you're going.
Not sure how owning the pipe would help them there. Google's search domination is (arguably) a result of them having a superior product, with advertising being completely coupled to that.
Why does this matter? Well owning the pipe is always a good move especially in the face of net neutrality. But there are all sorts of other tie ins. For one, payments.
Our current payment infrastructure is based around private leased lines. If you really wanted to take on the payments industry you have to start with the infrastructure. Otherwise you are always at the mercy of a credit card processor just shutting you off. When you own the network where the transactions actually flow it is a different story.