Plans for Google Fiber in San Jose on hold

- After years of planning, super high speed internet won't be coming to San Jose after all. Google Fiber has announced the rollout of service has been halted in cities across the country as they quote "refine their approach." They say they'll be focusing on new technology instead.

"We are disappointed that Google has decided to put this on a pause while they explore other technology alternatives," says David Vossbrink with the city of San Jose.

San Jose officials spent two and a half years working with Google Fiber on the project, approving permits and construction plans.

Santa Clara, Sunnyvale, Mountain View and Palo Alto would have gotten fiber too.

"Any time you talk about you talk about becoming an infrastructure company, it's a long term, highly expensive proposition. I thought Google was in it. But apparently they decided to let other people make those investments," says tech analyst Larry Magid.

Google has announced the unit's CEO will be stepping down and that there will be some layoffs.

But Magid says this should not be interpreted as a failed project.

He says, "I'm not saying it's not without negative consequences. I'm just saying from Google's standpoint, what they were doing was jump starting an industry where other companies weren't stepping up to the plate."

And in fact, San Jose is already in talks with other companies about higher speed service.

"We're working with AT&T, we're working with Facebook. It's not the same thing as a community wide installation, but we're flexible," says Vossbrink.

In a statement, a Google Fiber spokeswoman says, "We're confident we'll have an opportunity to resume our discussions once we've advanced our technologies and solutions."

San Jose officials certainly hope that's the case.

"I think they remain committed to providing similar kinds of services down the road. And so we'll be waiting and hoping that they'll come back to us with these new alternatives that they're exploring," says Vossbrink.

Google Fiber is already in eight cities and will reportedly finish set up in another four.

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