In case you though marginal cost pricing (near zero) is a growing trend in the Internet access business, consider what Google Fiber is going to do.
All Google Fiber markets are launching programs to connect residents in select public and affordable housing properties no cost and with no installation fee.
This initiative is part of ConnectHome, a program to bring Internet connectivity to more school-aged children and families living in Housing and Urban Development-assisted housing in 28 communities across the country.
Google initially is focusing on Atlanta, Durham, Nashville and Kansas City, but will extend the program to every other current and future Google Fiber market.
The fundamental challenge of the Internet age is that is is very hard to compete against suppliers that give away the products a given industry sells. That is near zero pricing or marginal cost pricing and the trend is extending into the physical realm, not being relegated to digital products and services.
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