Quoting IP transit prices (1$/mbit) is misleading. Huge companies like Google, OVH, Leaseweb heavily rely on public and private (point to point) peering. Public peering bandwidth is less than 0.1eur/mbit (100G ports @ AMS-IX, DE-CIX 2013)
Do we really think Google is trying to get into a business of laying down the fiber? I don't think so. They probably want to show that having Gb/s Internet connection is cool. Personally I am not sure why would I need so much data so quickly. My eyes and ears are barely processing all the bits around me already...Kris
Chattanooga TN is recognized for their 1 Gb/s Internet ... but apartment dwellers must have a landlord that hasn't already committed to a competing (slower) service. Internet speed is wonderful and sometimes reveals that our "slow computer" was actually a slow Internet. Other times, unfortunately, one discovers how slow the destination web site is running.