Are you getting tired of slow internet speeds? Here’s good news for you: Google is looking to expand its ultra-fast fiber internet service into homes in 34 more U.S. cities, including San Jose, Atlanta and Nashville. The one-gigabit-a-second super fast internet service could become a viable business for Google as users crave faster speeds to consume more online content.
Google’s service could pose a real threat to existing broadband providers you may be using now, since it works up to 100 times faster than average networks. “We continue to believe that Google Fiber is an attempt by Google to build a profitable, stand-alone business,” said Carlos Kirjner, a senior internet analyst at Bernstein Research. “Google is taking the long view and we think in five or more years, it could turn out to be a significant, profitable business for Google and headwind for incumbents.”
Major internet providers have also taken notice of Google’s fiber network. AT&T plans to launch its own gigabit network in Austin and “multiple markets” in the coming years according to CEO Randall Stephenson. Comcast also argued to regulators that Google Fiber could threaten its business model, even though it’s set to become the largest cable provider in the country if its $45 billion acquisition of Time Warner passes anti-trust probes.
Google Fiber Exploring New Cities
The Google Fiber service is currently available in its initial test city, Kansas City, for up to $120 a month. So far the consumer response in Kansas City has been “overwhelming” according to Kevin Lo, general manager of Google Fiber. Last year Google announced plans to launch Fiber in Provo, Utah and Austin, Texas in 2014 and will decide on more suitable cities by the end of the year, Lo said. Don’t forget to check out Pittsburgh, Google!
“We plan to share what we learn in these 34 cities,” said Milo Medin, vice president of Google Access Services. “It might not work out for everyone. But cities who go through this process with us will be more prepared for us or any provider who wants to build a fiber network.”