Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Google halts Fiber rollout in some U.S. cities

Published 10/26/2016, 01:04 PM
Updated 10/26/2016, 01:04 PM
© Reuters. A technician gets cabling out of his truck to install Google Fiber in a residential home in Provo

(Reuters) - Alphabet Inc (O:GOOGL) is halting the rollout of its much-talked about high-speed internet service, Google Fiber, in some cities in the United States.

The company's Google Access division, which provides the service, said its chief executive, Craig Barratt, would step down but stay on as an adviser.

The division will also lay off some employees in some cities where the service is not fully operational, it said in a blog post on Tuesday, but did not provide further details.

Tech news website Ars Technica reported, citing a source familiar with the matter, that the division would lay off about 9 percent of its staff.

Google had been expanding the service, which promises Internet speeds of up to 1,000 megabits per second, in several cities in the United States.

"The (blog) post suggests a greater focus on technology and deployment methods, implying a shift toward wireless," said Stifel analyst Noelle Dilts.

Google bought internet service provider Webpass, which uses both wireless and fiber technologies, earlier this year for an undisclosed sum.

The rollout of Google Fiber will be paused in Chicago, Dallas, Jacksonville, Los Angeles, Oklahoma City, Phoenix, Portland, San Diego, San Jose, and Tampa, Dilts added.

However, services will continue in cities where it is already available.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.