Google's Fiber Optic Internet Test
Google is building the ideal fiber optic based Internet in Kansas City. The Google Fiber initiative will deliver 1 gigabit of Internet speed for $70 a month. Additionally, for $50 per month many High Definition television channels will be available as part of the test service.
The announcement by Google has largely been greeted with extreme enthusiasm. Many internet users and cable TV subscribers have often dreamed of the Nirvana Internet - an Internet that offers data access speeds 500 times faster than the average internet user today.
Google will waive the $300 installation fee for early subscribers and will provide them online access that's 500 times faster than the 2-megabits-per-second ( Mbps) access most users in the US have had for the last 10 years.
As an additional incentive Google Fiber also offers the ability to record eight TV programs simultaneously. The network is so fast that subscribers will be able to download a high definition movie in approximately seven seconds. As additional teasers they will offer a free Nexus 7 tablet as a remote control as well as a free terabyte of data storage on Google Drive.
Google with this project is encroaching on the already crowded ISP space and will be competing with Verizon, AT&T, Time Warner, Comcast, and Cablevision.
Verizon offers its FiOS fiber-optic plan in select cities for years. The company says it has 4.2 million subscribers receiving 530 channels and broadband speeds up to 150 mpbs for the price of $205 a month. Verizon has spent $23 billion on the network.
AT&T, Time-Warner, and Comcast also offer Internet/TV plans at lower speeds. Unlike Google, they have longstanding relationships with their customers and a stronger brand recognition in the broadband offering.
Google has launched Fiber with a plan aimed at the biggest frustration surrounding current ISP plans: relatively slow speeds at high prices. As video chat, streaming media and photo sharing have increased, people are finding their broadband isn't broad enough anymore. The U.S. is 15th on Akamai's list of the countries with fast broadband. Google Fiber offers faster speeds at lower prices than most ISP's offer today.
The Kansas City project will cost google approximately $500 million.The surge in broadband content could bring Google new revenue from web and TV advertising.
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