Google Fiber “Likely” to Expand, Says Analyst [UPDATE]By: Sean Patterson - September 5, 2012
[UPDATE] A Google Fiber spokesperson who contacted WebProNews said, “We have no plans for expansion right now.” [ORIGINAL] It’s incredible to see that it has taken what is essentially an internet advertising company to begin to change the way cable companies do business. Sure, Google is more than just an advertising company, but it still shows precisely just how stubborn the cable monopolies around the U.S. have been to change.
Google recently implemented its Fiber TV and internet service to the test city of Kansas City. The connections provided by the service are lightning-fast (1Gbps) and prices are comparable to current cable subscriptions. The highest-tiered plan comes with a TV box, network box, 2TB storage box, and a Nexus 7 tablet, all for $120 a month. There is even a package for free internet, at average broadband speeds, for a one-time build fee of $300. Though the service is still adding niche channels that customers may want, it seems that Kansas City is now heaven for web geeks.
This week, finally, rumors have begun that Google is looking to expand its fiber service out of the Midwest. Business Insider quotes a Capstone Analyst as saying Google Fiber will soon be in places other than Kansas City. The analyst cites “people close to the situation in Kansas City,” as saying Google will begin taking bids from other cities soon.
Cable companies should be wary of such a move. The power they have will be greatly diminished if their local monopolies in communities across the U.S. are driven to compete with broadband that is 100x as fast and inexpensive. Google knows that getting people on faster internet connections, more often will raise their ad revenues. Customer satisfaction and failing cable companies are likely to just be a side effect.