A Common Networks field technician installing Terragraph technology on a roof in San Francisco

At first blush, inventing a start-up to challenge AT&T, Verizon and Comcast for high-speed broadband dominance seems crazy. It takes billions of dollars to lay fiber in the ground — historically, the only way to deliver ultrafast internet speeds to residential homes. The prohibitive cost has stopped some of the largest companies in the world from making a national dent in constructing high-speed broadband networks, including Verizon and Google. Meanwhile, Verizon and AT&T already plan to roll out 5G fixed broadband services in cities across the U.S., using wireless technology to compete with cable companies to provide home internet. But Zach Brock, the CEO of Common Networks, a company he founded with three other ex-Square employees, said he believes he has helped design a technology that can upend the U.S. telecommunications market. For about $50 a month, Common Networks is offering 300Mb/sec to 1Gb/sec download speeds for households around Silicon Valley and Alameda (Oakland is coming soon). That's about $20 or $30 less per month than what Comcast charges for about the same speed without promotional pricing. "Our focus is proving out of technology and showing we can deliver at an affordable cost," Brock said in an interview. "Our vision for the company is that everyone is connected to true broadband internet."

Partnership with Facebook technology

Zach Brock, CEO of Common Networks. Source: Common Networks

"Providing internet service is a very large market," said Kyle Doherty, a managing director at General Catalyst, whose venture capital firm led a $25 million Series B funding round in Common Networks last year. "High-speed broadband still isn't ubiquitous, but it will be in the future. There's a fair share of incumbents, but we're pretty compelled by the approach they're taking." Common Networks doesn't lay any fiber nor does it need government permits to provide internet. Eschewing the enormous upfront costs of broadband infrastructure gives the company a chance to compete against much larger players if pricing is lower and customer service is dramatically better, said Doherty.

High-speed broadband still isn't ubiquitous, but it will be in the future. There's a fair share of incumbents, but we're pretty compelled by the approach they're taking. Kyle Doherty managing director, General Catalyst

Still, it remains to be seen how quickly Common Networks can provide its technology outside of the San Francisco Bay Area. Regulations in certain cities could delay expansion, and being first to market is an important advantage for Common Networks, Doherty said. Verizon's 5G Home Internet is currently available in limited areas of Los Angeles, Sacramento, Houston and Indianapolis. Verizon is charging the same $50-per-month price for households with a Verizon wireless account and $70 per month for homes that don't. Verizon is also giving away the first three months of home Internet for free. Still, the technology needs to work reliably in all neighborhoods, said telecommunications analyst Craig Moffett of MoffettNathanson. Architectures based on millimeter wave spectrum suffer from wave-strength issues, he said. "The signal doesn't travel far enough, or penetrate through obstructions well enough, to make it economically interesting," Moffett said. But Common Networks "may have a better story to tell than the larger incumbents" because they're "all about keeping costs down," said Moffett, citing the company's use of unlicensed spectrum and limited spending on traditional network facilities. "It's not clear how successful companies like Common Networks will be competing against the large incumbent ISPs, but there's certainly a place for them in the broadband landscape," Moffett said. "I think you'll see more and more companies like Common Networks."

Capitalizing on poor customer service