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Google has a huge amount of data, spread over many international locations. And there are many people in, say, France, who might want to query data held elsewhere, say, in the U.S.
As Google's translation services grow, this becomes more likely.
Google's telecommunications bills must already be extraordinary, in order to handle this traffic.
If Google had its own dark fiber network, it could light that fiber and drive those costs to the ground.
Then the fiber would be open to other applications, such as:
But if Google is stuck buying capacity from Bell companies and other local monopolies, it can easily be strangled.
No smart business wants to be strangled.
Google is just being Clued-in.
Google should and will diversify its revenue model. They remember the Netscape's doom and they won't repeat the same mistake. The advertising model won't be enough in the future. Why? The click fraud and the new aggressive players in the search field are the main threats. Google Mini is part of the transformational process. What's next? Can we say Google Broadband?
http://divedi.blogspot.com/2004/10/google-broadband.html
http://divedi.blogspot.com/2005/01/google-broadband-2.html
Newsweek On Click Fraud, Search Engine Response
http://slashdot.org/article.pl?sid=05/01/18/026224