Wednesday, October 26, 2016

Alphabet slows down, for now, the expansion of its fiber optic service – CNET in Spanish

Alphabet, the array of Google, announced late Tuesday that it will stop the efforts of another of his companies independent: Google Fiber.

After five years, and the provision of Internet service with the speed of ultra-fast in seven cities, including Kansas City, Provo, Austin, San Antonio, Nashville, Charlotte and Atlanta, the company will not expand immediately to more cities and is saying goodbye to the workforce in the cities that were in a preliminary stage (or 9 percent of the team), ” said Craig Barratt, the now former executive of Google Fiber. Barratt said that no longer will lead the team.

Google will continue to give support to users in cities where Google Fiber currently offers service, he said.

it Is likely that Alphabet try to avoid the bleeding of money that will cause Google Fiber. Some analysts predicted that Alphabet would spend US$ 2,000 million in Google Fiber during 2016, reported Recode in 2015. In the previous quarter, the companies of the Alphabet as Google Fiber contributed US$ 185 million in revenue, however, operating them will cost the array$ 859 million. During the first quarter, the operating cost of these companies amounted to US$ 802 million.

The break in the service occurs just two days before the announcement of the results of the third fiscal quarter of 2016 of the Alphabet. It is possible that the results of this third quarter Alphabet reached or surpassed that figure.

editor’s Note: We have requested a comment from Alphabet on the number of employees affected.

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