AFAIK, when Google (or any other FTTH provider) comes into a city the incumbent ISPs improve service/lower prices only in that city. I don't know how to scare them into lowering prices without actually competing.
I suspect part of that may be due to lower market penetration. At some point, the FTTH market will reach a point of critical mass where it has to be competed with nationally, not just regionally.
That said, the cost estimates are just infrastructure expenditure to reach 20 million homes. If 1/3rd of those subscribed to Fiber @ $70/mo, 1/3rd at $120/mo, and 1/3rd did not subscribe, or subscribed at $0/mo, that's $15.2 billion in revenue annually, ignoring the $300/install offset from $0/mo customers. Those are totally BS, made-up numbers with wild assumptions, but it's a huge market and there's a lot of money to be made in it.
That said, the cost estimates are just infrastructure expenditure to reach 20 million homes. If 1/3rd of those subscribed to Fiber @ $70/mo, 1/3rd at $120/mo, and 1/3rd did not subscribe, or subscribed at $0/mo, that's $15.2 billion in revenue annually, ignoring the $300/install offset from $0/mo customers. Those are totally BS, made-up numbers with wild assumptions, but it's a huge market and there's a lot of money to be made in it.