1.5.2 New market entrants New market entrants typically try to address gaps in the existing market. For example, ISPs will focus on generating connectivity-based revenues, while organizations operating higher up in the Internet value chain (traditionally not ISPs) can benefit from a strong Internet ecosystem that allows their Internet services to be more widely used. The approach taken by new entrants can vary based on the market context. In established economies, the opportunity is likely to stem from existing broadband providers’ lack of motivation to invest in their legacy networks. In this scenario, the new entrants may be required to compete head-to-head with the established players, pushing those incumbents to improve their service offerings. In developing markets, however, the issue is more a lack of infrastructure, and even the established providers may not have the funding to roll out and maintain the comprehensive network. In this case, the new entrant may partner with one or more existing providers, or even the government, to share the infrastructure costs. In the case of Google Fiber in Uganda (see below), Google may have funded the entire project. Case study: Google Fiber, USA Governments and regulators need to create the right environment to attract investment from new entrants. This case study describes how Google, a global player whose traditional core business is to provide services over the Internet, decided to invest in broadband network infrastructure and offer broadband services to ISPs and end users.Google Fiber’s initiative was driven by its ambition to \"help make Internet access better and faster for everyone.\" In 2010, Google saw an opportunity to offer end users high-speed connectivity in a handful of cities where operators did not offer high-speed broadband services. Its motivation for investing in fibre networks has been to provide more opportunities for Google to generate revenues from advertising and content in addition to broadband subscriptions.In December 2012, Google Fiber started offering fixed broadband and TV services over its fibre-to-the-premises (FTTP) network in Kansas City. That city was chosen for its good economic infrastructure and a business-friendly environment – for example, the presence of utility conduits avoided the need for digging up streets.78 Analysts estimated that it would cost close to USD 84 million to pass 149 000 households in Kansas City, resulting in a cost per household of USD 564. The cost to acquire and connect a broadband customer, meanwhile, was estimated to be USD 46479.A key differentiator of Google Fiber’s value proposition was its high-speed broadband service, which offered speeds of up to 1 000 Mbit/s. The reaction from other broadband providers was nearly immediate; in August 2014, Comcast and Time Warner announced that they would increase their Internet access speeds to customers in Kansas City80. And in February 2015, AT&T announced that it would match Google Fiber’s price and speed in the city, as well81.In its \"Google Fiber City checklist,\"82 the company listed the requirements that applicant cities needed to meet to be considered as candidates for future network expansion. An attractive environment for Google Fiber to expand would offer:• transparency about existing infrastructure;• clear rules about gaining access to that infrastructure; and • facilitation of permitting and construction licences.Currently, Google Fiber covers three cities, and there are expansion plans for five more across the United States.Case study: Google Fiber, Uganda Google Fiber’s investment in Uganda, meanwhile, demonstrates that the approach Google took in the United States can also be replicated in developing markets. In this case, Google Fiber did not compete with broadband service providers. Rather, it chose to sell them wholesale services. The lack of adequate infrastructure in Uganda has been a barrier to high-speed broadband availability and Internet maturity. For Google, this situation has hindered its ability to grow revenues in that market from online advertising, its core business. According to the ICT Association of Uganda, there Trends in Telecommunication Reform 2016 23 Chapter 1