Google Stock Forecast: Google Fiber Internet Service Can Flourish In Developing Countries

motek 1The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.


  • Becoming a leading broadband internet service provider can help Alphabet reduce its over-reliance on advertising revenue.
  • Google Fiber is having a hard time competing in America. I opine that Google should focus more on building fiber internet connectivity networks on developing countries.
  • The Philippines’ pseudo-monopoly phone/internet service provider,
  • PLDT has partnered with Google Fiber. This should be the template for Alphabet’s international expansion of its fiber optic internet service.
  • By collaborating with leading phone/cable/internet companies of developing countries, Google Fibr can rise to be a major revenue contributor to Alphabet.

Alphabet’s (GOOGL) Google Fiber was supposed to be America’s savior when it comes to superspeed broadband internet service. Unfortunately, almost 5 years since its launch, Google Fiber remains an embarrassing failure in the United States. Google Fiber is largely dead in America because it can not expand fast enough to disrupt cable internet and 4G/LTE wireless internet providers.

In spite of Alphabet’s massive cash hoard and cutting-edge fiber optic network rollout technology, politicians or government regulators gravely hampered Google Fiber’s expansion in the U.S. As you can see from the chart above, Google Fiber is only available in less than 20 U.S. cities.

(Source: Google)

My fearless forecast now is that Alphabet will eventually have to quit the U.S. and instead re-align Google Fiber as its international platform toward becoming a global internet service provider. Developing countries with very slow and expensive internet services (like the Philippines) will welcome Google Fiber with open arms. Growing Google Fiber can help Alphabet reduce its super over-reliance on advertising revenue. Monopolistic telecom companies in developing countries can license (or even hire Google) as their partner in rolling out gigabit fiber optic internet services.

Philippine Long Distance Telephone Company (PLDT) has already partnered with Google Fiber to develop its PLDT Fibr fiber optic broadband internet network in the Philippines. Google has already persuaded PLDT to help it sell its Google WiFi mesh routers to every Filipino subscriber of PLDT Fibr. This tactic can help Alphabet sell more of its hardware products. My fearless forecast is that Google Mesh Wi-Fi router can be an international hit though the help of local telecom operators.

As per my contacts at PLDT, Fibr is being built using Google Fiber’s shallow trenching technology. PLDT Fibr is essentially a localized brand of Google Fiber created for the Philippine market. This technique can be  template that can be used on other countries where Google Fiber can find local telecom company as partners.

PLDT Fibr (Google Fiber Philippines) is already available in Metro Manila and select provinces. By 2020, PLDT Fibr will likely reach our town located in Ilocos Norte, Philippines. Ilocos Norte is now emerging as a business processing office (BPO) hub. The growing demand for faster internet from BPO companies in Ilocos Norte will ultimately compel PLDT to bring gigabit Google Fiber broadband internet in our province.

Going forward, this scenario can play out in other countries. Google Fiber (with local telco partners) will gradually rollout from major cities toward servicing all major provinces with huge population count. Consequently, Google can sell more of its fiber optic hardware and Google Wi-Fi routers.

Why Selling More Fiber Optic Internet And Mesh Wi-Fi Routers Is Beneficial

Due to the increasing competition in digital advertising, Alphabet has compelling reason to seek new products and services. It cannot rely solely on advertising revenue to ensure its future prosperity. This undeniable fact is why Alphabet sells its own brands of smart speakers, routers, tablets, laptops, and smartphones.

My takeaway is that Alphabet, the 8,000-kilogram King Kong of the digital advertising industry, is hedging its future by becoming more like Apple (AAPL). Google Cloud cannot catch up with industry leaders AWS and Microsoft (MSFT) Azure. However, Alphabet can become a global-wide fiber optic broadband internet service provider by collaborating with monopolistic telecom companies in developing countries.

Further, Google Fiber and Google Wi-Fi can obviously become a giant spying funnel where Alphabet can track and gather more personal data and online habits of billions of people. The bigger, the more in-depth the personal data library of Alphabet, the more advertisers it can attract to its web and mobile advertising platforms, Google Search PPC Ads. Google AdWords, and AdMob.


Google Fiber can increase the hardware products sales of Alphabet and also, indirectly, its advertising business. By focusing more on international markets for its fiber optic broadband internet service, Alphabet can accelerate dissemination of its Google Fiber and Google WiFi products and services.

The other advantage in focusing on developing countries is also more lenient politicians and government regulators. Alphabet and its local telco partners can just go bribe a few local politicians so that there will be no opposition at all for their fiber optic shallow trenching activities.

Google Fiber and Google WiFi are not moonshot projects of Alphabet. They are viable long-term businesses that could disrupt the leading internet services providers of any country. They are therefore worthy reasons why we should add more GOOG and GOOGL shares.

I have a buy rating for GOOGL but I Know First’s stock-picking AI platform only has a neutral market trend forecast for it.

Lastly, monthly technical indicators and moving averages are also endorsing GOOGL as a buy.


Past I Know First Success with Google Stock Forecast

I Know First has had bullish Google Stock Forecast. On June 23, 2017, an I Know First algorithm issued a bullish 1 year  Google stock forecast with a signal of 44.91 and a predictability of 0.52, the algorithm successfully forecasted the movement of the GOOGL share.  Since then, GOOGL shares have risen 20.73% in line with the I Know First algorithm’s forecast. See chart below:

This bullish Google stock forecast was sent to I Know First subscribers on June 23, 2017.

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Please note-for trading decisions use the most recent forecast.