Earnings report from various telecommunications companies showed a climb in their revenues. Due to their recent growth, the telecoms planned to increase the speed of their broadbands. However, analysts believed that corporations with massive amount of cash such as Google could disrupt the internet service provider business model of telecoms.
Google made its bread and butter through smartphones that could access the internet and utilize the search engine. Recently, the tech titan announced that Austin, Texas would be its next target location to roll out Google Fiber. Google Fiber was Google's project that would use fiber-optic communication by building a broadband internet network infrastructure.
Google's current business is all about people's connection to the internet and their probable visit on Google's homepage. The company's advertising income made up around 90% of its total revenue and would remain as the dominant driver of profits for the company. Moreover, Google's net profit margin was 19.6% equal to US$32.58 earnings each share. The company also reported that it possessed US$54.4 billion in cash which could be used for more infrastructures and acquisitions.
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