Google Has the Power to Change the Cable Internet Industry with Fiber

June 18, 2013 - Written By Briley Kenney

It’s obvious that Google is expanding Fiber, and the company is looking to turn the service into a prime money maker. Fiber is very promising, but I probably don’t have to tell you that much. After all, Google offers a 1GBps connection for only $70 a month. Currently, competing cable companies are offering much slower connection speeds for the same price. It’s quite ridiculous really, but Google is trying to change all of that.

Comcast CEO Brian Roberts spoke recently at the 2013 cable show:

“I hope there’s a demand for (Google Fiber). The more customers crave speed, the more the kids in the garage and the geniuses around the world can invent applications that require speed. That’s the best thing that can happen to our industry. We have to embrace that competition.”

Except, when you look at the actions of all cable providers, including Comcast, Roberts is pretty much full of…well, air. Although, Comcast demoed a 3Gbps cable broadband connection at the annual tradeshow in Washington, DC. Realistically, they will probably charge an arm and a leg if the service ever makes a commercial launch.

As CNET writer Marguerite Reardon writes, “based on how the industry has chosen to price its service, it’s clear that cable operators are not exactly encouraging adoption of ultra high-speed broadband.”

She’s spot on with that observation too. Comcast offers a 105MBps service which is only available in select markets for $90 a month. Even that is only viable for the first six months, whereupon the price increases to about $115 a month.

Furthermore, Comcast offers a 305Mbps service for $320 a month, and they charge a $500 installation fee. For comparison, Google’s 1Gbps service is only $70 a month and there are no installation fees.

In other words, cable companies are raking in the dough in excessive amounts. That’s not really a secret though, especially if you’ve shopped for high-speed internet in the past few years.

If Google can successfully rollout Fiber on a grand scale, then they certainly have the power to change the industry. Anyone else rooting for Google here? I know I am.

Source: CNET