Google Fiber: Can the Search Giant Tackle Telecom?

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Feb. 28 (Bloomberg) -- Bloomberg Contributing Editor Nicholas Thompson discusses the expansion of Google Fiber and what it could mean for the telecom industry on Bloomberg Television’s “In The Loop.”

Broader role in the consumer media market?

What do you think?

Will google he come a major player in the media market?

I don't think they will for a while, but they have been quite successful as the beginning.

It started out as a funny project.

It was not clear if they wanted to do this as a business or they just wanted the telecom companies to move faster.

Rex blaine how much faster this -- explain how much faster the services.

Rex it is about 10 times faster on average.

It might be 100 times faster depending on your service currently.

It is great.

You take a fiber line directly to somebody's house.

Which means you have to wire them up the telephone poles, dig them up the street, and then take the line into somebody's house.

You have to have a city that wants to do this.

The city has to want to do it and they have to give google or another company doing it special access.

It has to give it the right to deduct the streets.

It is a very complicated regulatory process.

And you get clusters of people near each other who all want it.

You need to have a neighborhood with at least 20 houses.

It seems like a lot of cities would like this.

And are doing but they can to ingratiate themselves with google.

How do you become the city that is next?

There are a couple of things.

You need to have people who are excited about it and know about it.

The second thing is, google wants a lot of regulatory wheel greasing.

Kansas city gave google a lot of perks and incentives.

I think what google is doing is to say, hey, do you want google fiber?

You've got to give us a little bit of this and that.

And the older -- the other thing to overcome is the other telecom companies hate this, and they have a lot of power and control over city councils and state senate.

It worked so well in kansas city that they are working to ban it in the rest of the state.

Could this mean that google replaces the cable companies?

That is what some people are thinking about.

The started as a small project, possibly just to embarrass the cable companies, to point out how terrible internet connection is in his country.

Now it is growing.

It could be a stand-alone business for google.

Now with the merger of comcast and time warner cable with a relaxation of net neutrality rules, there's a lot of fear and a sense that there needs to be more calm edition in the market place.

And google could provide that.

-- more competition in the marketplace.

And google could provide that.

Nick thompson, thank you very much.

Let's take a quick look at the market.

The s&p is having another record high.

The fight the bad news in the economy, that the fourth quarter only grew 2.4% in said of the estimated 3.2%. nonetheless, 1859, a new high on the s&p. coming up, the academy awards are on sunday.

You know them as the oscars, but have you ever heard of the site tech awards echo they are also put on and they are for innovators who dream of cool stuff in films.

And they are awarding a lifetime achievement award.

Jon erlichman has the story.

If you saw paramount "transformers: dark of the mood"

This text has been automatically generated. It may not be 100% accurate.

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