Google wants satellite farm and cable franchise for Kansas City tests
Google (Nasdaq: GOOG) is asking regulators for help delivering video to homes in Kansas City, where it plans to test the type of advanced services that could be delivered on a 100-gig network. In addition to filing an application for a cable franchise that would allow it to take on incumbent Time Warner Cable (NYSE: TWC), Google is asking the FCC to let it build a satellite farm in Iowa.
Google hasn't said what it plans to do with the satellite farm, but the company is expected to use it to deliver video to Kansas City via fiber.
While Google has drawn a lot of attention to its tests in Kansas City, its fiber project will likely have a limited impact on Time Warner Cable and other pay TV distributors in the long term. "Google's decision to enter the video market is perhaps best viewed as an experiment in video delivery and package, but perhaps also as an admission that their original proposal of a broadband-only business model is not economically viable," Sanford Bernstein analyst Craig Moffet said in a research note.
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