How disruptive could Google Fiber be?

The excellent Bill St Arnaud posts a very interesting analysis today of the Google Fiber project in Kansas City on his blog under the title Google’s secret strategy with the Kansas City Fiber project. In this post, Bill states (a point I’ve made in the past) that it’s hard to imagine Google Fiber being a profitable venture in the usual terms, and that its exemplarity is out the window (somthing I intend to come back to in a blog post I've been mulling for a while). Based on his understanding of energy markets, Bill argues that a challenging but potentially successful approach would be for Google to connect everyone for free with a basic level of Google TV ad-driven service and offer energy management services on top.

Knowing as little as Google is willing to share about what they're actually doing, it's hard to assess if Bill could be right, but he's certainly highlighting a scenario I hadn't thought about that is intriguing and has the ring of truth to it. Well worth a read if you have a few minutes to spare.