Google today confirmed its entry into the WiFi space.
Rumors began swirling around this about the time Google announced its secondary offering. Om Malik was among the first to suggest in mid August the possibility that Google would put in place a nationwide broadband WiFi network.
As a beta, Google has launched secure WiFi in a few San Francisco locations. Basically, it's a downloadable VPN application that lets users access the web (similar to Boingo). Combined with rumors that Google has begun to get bids from providers for the development of a nationwide fiber network and their recent hiring of Vinton Cerf, people are surmising that Google intends to provide national WiFi access (perhaps for free).
What would this mean for Google? Well, it would certainly give them an unbelievable advantage in terms of serving up local advertising. If you know my exact location when I'm logging on, you can point me to the nearest coffee shop, restaurant or car dealer.
Google could also use national broadband to serve up video content, opening up new markets for them to play in.
It will also bring out privacy concerns. The security comes from an encryption system that runs on Google servers. Basically, you'd run all your content through Google, which would encrypt and send it.
What does this mean for telecom and cable providers? The broadband cash cow you were counting on for the next 5-10 years may quickly vanish.
For more info on Google WiFi take a look at the Google WiFi FAQ.
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