Here's a good quote from a friend of mine, Craig Clausen of New Paradigm Resources Group (a market research firm specializing in telecom):
"This is more of a strategic play for Google. As they mentioned, there are three essential components to the Internet (i.e. Google’s business model): Computing power, cloud storage and access. The first two have worked in Google’s favor. The third hasn’t kept pace. The telcos and other access providers (like the cablecos) don’t care about what’s good for Google and broadband speeds aren’t where Google would like them to be. As they’ve done in similar situations (such as wireless and energy), Google is signaling to the telcos that, while they’d prefer not to be in the telecom business, they are certainly capable of doing so. Picking Kansas City – smack dab in the middle of the country – has less to do with Kansas City showing the most interest and more about being able to distribute that message evenly between the coasts. It’s a different type of investment for Google – one in which they hope to spur the access providers into stepping it up or risk having the guy with the deepest pockets step in for them."
"This is more of a strategic play for Google. As they mentioned, there are three essential components to the Internet (i.e. Google’s business model): Computing power, cloud storage and access. The first two have worked in Google’s favor. The third hasn’t kept pace. The telcos and other access providers (like the cablecos) don’t care about what’s good for Google and broadband speeds aren’t where Google would like them to be. As they’ve done in similar situations (such as wireless and energy), Google is signaling to the telcos that, while they’d prefer not to be in the telecom business, they are certainly capable of doing so. Picking Kansas City – smack dab in the middle of the country – has less to do with Kansas City showing the most interest and more about being able to distribute that message evenly between the coasts. It’s a different type of investment for Google – one in which they hope to spur the access providers into stepping it up or risk having the guy with the deepest pockets step in for them."