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Google Fiber halts expansion plans, continues operating in Charlotte

By Mark Barber, Blaine Tolison, wsoctv.com and BRANDON BAILEY, AP Technology Writer
By Mark Barber, Blaine Tolison, wsoctv.com and BRANDON BAILEY, AP Technology Writer

CHARLOTTE, N.C. — Google's parent company is halting operations and laying off staff in a number of cities where it once hoped to bring high-speed internet access by installing new fiber-optic networks.

The company also announced that Craig Barratt, a veteran tech executive who led the ambitious - and expensive - Google Fiber program, is stepping down as CEO of Access, the division of Google corporate parent, Alphabet Inc., that operates the 5-year-old program.

In a statement, Barratt said Google Fiber will continue to provide service in a handful of cities where it's already operating, including Atlanta; Austin, Texas; and Charlotte.

But it will put further plans on hold in at least eight more metropolitan areas where it's been holding exploratory talks with local officials. Those include Dallas; Tampa and Jacksonville, Florida; Los Angeles; Oklahoma City; Phoenix; Portland, Oregon; and San Jose, California.

Barratt didn't say how many jobs will be cut. His statement described the Access business as "solid," but said it would make "changes to focus our business and product strategy" and incorporate new technology.

A recent report by tech news site The Information said the business was under pressure by Alphabet CEO Larry Page to cut costs after failing to meet financial goals, including a target of signing up 5 million subscribers.

Barratt said he'll continue to serve as an adviser to Page.

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Google will continue laying their cable in the Queen City, but lessons learned here and in other cities have caused the company to rethink how it will move forward.

Neighbors in places like Elizabeth have seen first hand how difficult it has been for crews burying thousands of miles of fiber optic cable.

"They had a bit of digging they had to do," said neighbor Elizabeth Incze.

Laying the fiber isn't easy -- yards and streets are ripped up, gas lines are often cut and water main breaks happen too.

Channel 9 investigated and found that the damage is costing the company. Google Fiber contractors have been billed nearly half a million dollars for damage since July 2015. They still owe the city most of that money, about $400,000.

Google Fiber is now trying to figure out how to transmit their signal wirelessly, so they don't have to rebuild roads.

Disruptions are expected to continue in Charlotte as construction moves forward. City records show there was at least one line break a month during a four-month stretch last year between Google Fiber and AT&T.

But despite the problems, city leaders told Channel 9 they're excited about the plans for Google's high speed internet and it will not only bring in new business but encourage more development.

"I think Charlotte is growing so much so quickly that it has a need for fast internet," Incze said.

Google could not give a timeline for when Charlotte's full installation would be finished.

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