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That Was Fast: Google Fiber Puts More Pressure on the Cable Guys

From my ISP, Verizon Corporation (NYSE: VZ) FiOS, yesterday I got a fresh upgrade offer. This is not a bad deal, really. $ 10 a month, I can upgrade my 15 megabits per second Internet connection to a 50 MB account. Verizon said, "because you are doing more online than ever, you need a faster rate than ever before." Well, I believe. Pay 15% of the total of $ 75 a month, but my connection speed will be more than three times.
Or, you know, I can only move to Kansas City. There, I will sign the Google (NASDAQ: GOOG) fiber for $ 70 per month, and enjoy a full Gigabit network bandwidth goodness. This is my current bandwidth is nearly 67 times more than $ 5, or 20 times to upgrade Verizon's offer for $ 5 less. How to form "than ever faster rate, or the higher the value of it?
Can you hear me? Good,
You can bet that service providers have begun to feel the heat from Google's competitive plan. Big G began a slow, nearly three years from the announcement in Kansas City the first connection, but it has picked up the pace significantly. Fiber services in Austin, Texas last week to get the nod, the service is jumping Provo, Utah, as well.

The Provo streets and high-speed fiber optic lights. From the photos on the official website of the Provo City.
Provo situation is unique. Google launched its own fiber-optic cable in Kansas City (Kansas and Missouri) and Austin, Provo already within the city's fiber-optic network. Google can be simple steps to upgrade to gigabit speeds iProvo fiber network, and start management services. The Company undertakes to every home and business along the current line of fiber-optic backbone connection.
Due to the existing infrastructure, Google can provide a completely free 5 MB connection is just a one-time connection fee of $ 30, and gave a worthy recipients, such as schools, hospitals, libraries Gigabit connection. Gigabit account the cost of other people in Provo, or indeed in Austin, there is no word, but chances are it will be comparable service to Kansas City.
Why not sell it everywhere?
There is little reason Verizon's fiber optic technology can not provide consumers with gigabit speeds far below the magic $ 100 per month price barrier. New connection card in the ISP side, perhaps in my garage fast junction box (or just a software update from the central office), I'll be good to go.
Verizon does have a 300 megabit service, which is Google's high-speed plan at least in the same ZIP code. But I will note that Google's high-speed connection both ways, Verizon's the Scheme Limit fastest upload speed in 65 trillion - I had to pay $ 210 per month, Verizon's most competitive plan.
Google shows the ISP industry how it's done. One can only hope that, Verizon's feeling the pressure of the big G, and take action to make their own services, faster, cheaper and more competitive. I will pay attention, Google cherry picking fiber Community FiOS options.
After that, we have no reason cable companies should not follow the trend. It is true that the coaxial cable is not quite turbine charm the correct fiber connection, but the platform is still with the competitiveness of the right back office equipment. Comcast Corporation (Nasdaq: CMCSA) 100 megabits plan, for business customers, for example (10 megabits upload, natch). But you pay through the nose of these transactions - $ 370 per month top Comcast plans.
Outlook
Google Fiber is Google's cash cow, but the project also for the company to complete a larger goal. Google to win more consumers to get their hands faster, more ubiquitous Internet access. If the fiber project management lead to some competitive fire in danger of stagnation, tend to be anti-competitive ISP market, then it is a job well done - even if the service never arrived in New York City or my hometown Tampa.
As one of the most dominant Internet companies, Google has done a habit, driven by strong returns for its shareholders. However, like many other Web companies, it is also trying to adapt to an increasingly mobile world. Despite its Android operating system has gained an enviable lead may not be sold. That is why it is more than ever more important to understand Google's vast empire every one. The Motley Fool's Google's new high-quality research report, we broke Google investors of the risks and potential returns. Just click here now to unlock your copy of this valuable resource.
 



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