Alphabet Inc (NASDAQ:GOOGL) has suggested a strategy shift that will bring fast web connections to homes across America. The company stated on Tuesday that it was refraining from expanding the high speed fiber optic internet network while reducing staff that is responsible for the work. Alphabet did not provide the number of jobs being cut.
Craig Barratt, chief executive (Access) of the Alphabet division containing Google Fiber said he planned to step down due to the company shift to new technologies and method of deploying high speed internet. Although Barratt is stepping down, he will remain an adviser to Alphabet.
Google Fiber was introduced in 2010, it was a push to compete against telecommunications and cable operators who controlled the market for internet access. The cost of digging roads and laying fiber optic cables have been large investments, Google has begun to consider alternatives, such as wireess and fiber partnerships which don’t require the company to build a full network themselves.
Google Fiber is available in eight metro areas. Google announced that it was acquiring Webpass, a company that offers high speed internet to apartment buildings using a fiber connected antenna. An acquisition of Webpass is a more convenient and less expensive way to expand access to faster web speed.
Google will not disclose financial results for Access. Google earnings will release Thursday after the market close.