Google's fast Fiber Internet service may be coming to 34 new cities in the U.S., stepping up competition with existing cable, telecom and Internet providers like Comcast, Verizon and AT&T
SAN FRANCISCO - Google unveiled big expansion plans for its fast Fiber Internet service on Wednesday, stepping up pressure on incumbent cable and Internet providers such as Comcast, Verizon and AT&T.
Google, the world's largest Internet search engine, identified nine urban areas encompassing up to 34 cities across the U.S. as possible sites for deployment.
"We aim to provide updates by the end of the year about which cities will be getting Google Fiber," Google said on its blog. "Between now and then, we'll work closely with each city's leaders on a joint planning process that will not only map out a Google Fiber network in detail, but also assess what unique local challenges we might face."
Google Fiber is about 100 times faster than what most Internet users live with today, according to the company.
When the service started in 2011 in Kansas City, Mo., it was considered by some to be an experiment, rather than a serious new business for the web giant. But Wednesday's announcement may put such theories to rest, while also sending a message to existing cable, telecom and Internet providers that a new, cash-rich rival has arrived.
"Google Fiber is an attempt by Google to build a profitable, stand-alone business," Carlos Kirjner, an Internet analyst at Bernstein Research, wrote in a note to investors on Wednesday. "It may not make a huge difference for Google or for the incumbents in the next one, two or three years, but Google is taking the long view and we think in 5 or more years, it could turn out to be a significant, profitable business for Google and headwind for incumbents."
The 34 cities being considered are: Phoenix, Scottsdale, and Tempe in Arizona; San Jose, Santa Clara, Sunnyvale, Mountain View and Palo Alto in California; Atlanta, Avondale Estates, Brookhaven, College Park, Decatur, East Point, Hapeville, Sandy Springs and Smyrna in Georgia; Nashville-Davidson in Tennessee; Charlotte, Carrboro, Cary, Chapel Hill, Durham, Garner, Morrisville and Raleigh in North Carolina; Portland, Beaverton, Hillsboro, Gresham, Lake Oswego and Tigard in Oregon; San Antonio in Texas; and Salt Lake City in Utah.
Fiber in Kansas City, Mo., costs $70 each month for an Internet connect that has data-transfer speeds of 1 gigabit per second. For $120 a month, users can get Internet, TV and a Nexus 7 tablet. A 5 Mbps service is offered at no monthly charge but costs $300 for a one-time construction fee.
In Provo, Utah, monthly prices are the same but require a one-time construction fee of $30.