Hunter Walk, a former Google employee, tries to explain why Google Fiber makes sense for Google:
When you play with it, the gap between you and Internet totally disappears. The computer is responsive in a manner that I've never experienced before. (...)
People ask me what's Google's metagame with Fiber. My guess is the following: Use Fiber to reset consumer expectations of what a connected home should feel like. Continue to drive down the cost of deployment and sign up customers for a very sticky (high LTV) service by being first to market. If existing ISPs follow - or even beat Google in some many markets - Google still wins. Why? Because as I found out personally, when the Internet is this fast you do one more search per session, watch one more video per session, send one more email per session. A connected population benefits Google.
Just like SPDY, Google DNS, PageSpeed, Google Fiber is all about making the web faster. When pages load almost instantly, interacting with the web is seamless. There's no "brief moment of silence" while waiting for the next page to load.