Leveraging Lucents Network Solutions Theme Nokias acquisition of Alcatel-Lucent provides the company with an opportunity to lease its fiber optic network to Google Fiber in the U.S. Why Not Europe Different infrastructure European Union not Google-friendly (Bird 2015)
(Rutherford 2001) Googles Encroachment On The Telecommunication Industry Founded Google Fiber in 2011 Operating in 8 U.S. Cities Provides 100 times faster internet service than competitors - Google offers 1 gigabyte per second - 10 megabyte per second competitor average (GoogleFiber.com 2016)
Googles Expansion Problems: Legal Problems Slow Expansion - Reached only 8 cities in half a decade (Wehner 2015) -
Acquired only 200,000 of its 5 million customer goal (Wehner 2015) Legal landscape is not friendly to intrusions (Frankle 2016) Googles Expansion Problems: Financial Problems
Google must lay out its own fiber network in order to compete (Yarow 2013) Arduous process that requires high installation costs - Already spent $130 million per city, with a total $1.044 Billion spent this year (Rosenbaum 2016)
Nokias New Positioning Alcatel-Lucent Cable and Fiber Optic Network BytePile.com Nokias New Positioning -
Alcatel-Lucent constantly leases out its infrastructure - LTE and communications related cables are awarded to the big 3 telecommunications firms (Alcatel-Lucent 2010) - Fiber and internet networks infrastructure is used by small local infrastructure providers
or government entities (Alcatel-Lucent 2010) Reasons For Google To Cooperate Google Major Products and Services Internet Advertising Internet Services Software Development Computer Hardware Fixed Networks Cloud Platforms Digital Media
Nokia Major Products and Services Digital Health Solutions Tech and Network IP Licensing VR Capturing Mobile Networks Fixed Networks Cloud Services Network Applications/Analytics (Rosenberg 2016) (Nokia.com 2016)
Reasons For Google To Cooperate Bypass regulatory difficulties Avoid installation costs by using existing infrastructure (Carlon 2016) Tap into a revenue source Google can focus funds on last mile gap -
Acquired company WebPass to pivot toward wireless delivery (Carlon 2016) Operations AlcatelLucent Maintenance Services
Expansion possibilities Bandwidt h Capacity Expansion possibilities Googlefiber.com, 2016 Bandwidth
7360 ISAM FX Shelf Demand for bandwidth is growing as more people stream content Google Fiber:1Gb/s Alcatel- Lucent:2X100Gb/s per slot 4,8, 16 slot backplane
Nokia.com, 2016 Alcatel-Lucent Maintenance Services Downtime is not an option if you want to capitalize on network opportunities. Nokia.com, 2016
Legal/Political One Touch Make Ready - Alcatel-Lucent will have to navigate legislation for private wires (Brodkin, 2013) FCC rules regulate the access to privately owned wires. (Brodkin, 2016) Fiber to the home (FTTH) comes with its own regulations (Glaser, 2016) Legal/Political
Nashville case: City Metro Council are debating legality of One Touch Make Ready AT&T finds that this ordinance puts them at risk AT&T: 20% of Nashville utility poles NES: 80% of Nashville utility poles (McGee, 2016) Financial Considerations for AlcatelLucent - Contract Revenue of up to $1 billion for 4 years
- Verizon currently has a 4-year, $4 billion deal with Alcatel-Lucent for its LTE network (Alcatel-Lucent 2010) - Additional consulting services revenue of around $20 million (Yarow 2016) - technical support
- field maintenance Financial Considerations for AlcatelLucent - Legal costs from possible backlash and regulatory navigation for letting Google use Alcatel-Lucents infrastructure.
- Operational costs from continuing to lay out fiber to expand infrastructure. (USDT 2016) - Currently an average of $178,222 per mile (USDT 2016)
Risk Business risk of upsetting current major customers like AT&T, Sprint, and Verizon Alcatel-Lucent will be catering to overlapping competitors, which poses a conflict of interest Nature of the Industry (Barford 2009)
(Powell 2015) Nature of the Industry (Barford 2009) Nature of the Industry (FOA.org 2016)
References (Financials) Alcatel-Lucent. "Verizon Wireless Awards Alcatel-Lucent Contract Expected to Be Worth US$4 Billion for Ongoing 3G Network Expansion and LTE Build out." Nokia Networks, 2010, networks.nokia.com/press/2010/002258. Nokia. "Maintenance Services." Nokia Networks, 2016, networks.nokia.com/services/maintenance-services. USDT. "RITA | ITS | Costs: Unit Cost Components for Fiber Optic Cable Installation." RITA | ITS | Welcome to the Costs Database, 2016, www.itscosts.its.dot.gov/its/benecost.nsf/DisplayRUCByUnitCostElementUnadjusted? ReadForm&UnitCostElement=Fiber+Optic+Cable+Installation+&Subsystem=Roadside+Telecommunications+. Yarow, Jay. "The Cost Of Building Google Fiber." Business Insider, 8 Apr. 2013, www.businessinsider.com/the-cost-of-building-google-fiber-2013-4. References (Legal)
AT&T vs Google: Brodkin, Jon. "Why AT&T Says It Can Deny Google Fiber Access to Its Poles in Austin." Ars Technica. N.p., 16 Dec. 2013. Web. 4 Nov. 2016. . Nashville: Brodkin, Jon. "Google Fiber Stalls in Nashville in Fight over Utility Poles." Ars Technica. N.p., 01 Aug. 2016. Web. 4 Nov. 2016. < http://arstechnica.com/tech-policy/2016/08/google-fiber-stalls-in-nashville-in-fight-over-utility-poles/>. FTTH: "Legal And Regulatory Issues Arising From Fiber-To-The-Home Networks In Master-Planned Communities." Telecom Attorneys. N.p., n.d. Web. 4 Nov. 2016. . One Touch Make Ready: McGee, Jamie, and Joey Garrison. "Council Attorney Raises Legal Issues with Google Fiber Proposal." The Tennessean. N.p., 13 Aug. 2016. Web. 5 Nov. 2016. < http://www.tennessean.com/story/news/2016/08/13/council-attorney-raises-legal-issues-google-fiber-proposal/88636478/>.
References (Operations) Expansion Plans." Expansion Plans Google Fiber. N.p., 2016. Web. 09 Nov. 2016. . "Gigabit Networks." Nokia Networks. Nokia, 21 Oct. 2016. Web. 09 Nov. 2016. . "Maintenance Services." Nokia Networks. Nokia, 11 Jan. 2016. Web. 09 Nov. 2016. . Nokia Gigabit Express. Nokia, n.d. Web. 09 Nov. 2016. . "7360 ISAM FX." Nokia Networks. N.p., 18 Aug. 2016. Web. 09 Nov. 2016. . References (Introduction) Bird, Mike. "Why Europe Hates American Tech Companies." Business Insider. Business Insider, Inc, 02 Apr. 2015. Web. 09 Nov. 2016.
Brodkin, Jon. "AT&T Sues Nashville in Bid to Stall Google Fiber." Ars Technica. N.p., 23 Sept. 2016. Web. 09 Nov. 2016. . Frankel, Daniel. "Charter Sues Louisville, Says City Is Favoring Google Fiber and AT&T." Http://www.fiercecable.com. N.p., 04 Oct. 2016. Web. 09 Nov. 2016. . "Network." BytePile.com - Network. N.p., n.d. Web. 09 Nov. 2016. . "Plans and Pricing." Google Fiber. N.p., n.d. Web. 09 Nov. 2016. . Rosenbaum, Eric. "Google's Speedy Fiber Runs into Reality of Huge Cable Costs." CNBC. CNBC, 15 Aug. 2016. Web. 09 Nov. 2016. . Carlon, Kris. "Google Reportedly Cutting Fiber Workforce in Half, Moving to Wireless Solution." Android Authority. N.p., 27 Aug. 2016. Web. 09 Nov. 2016. .
References (Introduction) Rosenbaum, Eric. "Google's Speedy Fiber Runs into Reality of Huge Cable Costs." CNBC. CNBC, 15 Aug. 2016. Web. 09 Nov. 2016. . Rutherford, Jay. "Technological Connectivities of European Cities?" GaWC Research Bulletin 181. KMI, 2001. Web. 09 Nov. 2016. . Wehner, Mike. "Google Fiber Is Succeeding and Cable Companies Are Starting to Feel the Pressure." Business Insider. Business Insider, Inc, 15 Apr. 2015. Web. 09 Nov. 2016. . Yarow, Jay. "It's Surprisingly Inexpensive For Google To Build Its Cable-Destroying Google Fiber Network." Business Insider. Business Insider, Inc, 08 Apr. 2013. Web. 09 Nov. 2016. . References (Risk)
" Fiber Optic Resources For STEM Teachers." Fiber Optics Association. N.p., n.d. Web. 09 Nov. 2016. . Barford, Paul. "InterTubes: A Study of the US Long-haul Fiber-optic Infrastructure." Wisc.edu. N.p., 2009. Web. Powell, Rob. "Comcast Climbs Up a Rung on the Business Ladder." Telecom Ramblings RSS. N.p., 6 Sept. 2015. Web. 09 Nov. 2016. < http://www.telecomramblings.com/2015/09/comcast-climbs-up-a-rung/>. Rosenberg, Eric. "How Google Makes Money." Investopedia. N.p., 05 Aug. 2016. Web. 09 Nov. 2016. .
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