Google Wins by Losing to AT&T on Super-Fast Fiber Broadband Rollout

[dgstorm]

You have to hand it to Google. When they craft a sneaky plan to "encourage/push" the U.S. internet service provider (ISP) companies to adopt true broadband (1Gbps) fiber internet, they do it brilliantly. It was about 6 years ago that Google shared their plans to start rolling out 1Gbps fiber internet to customers throughout the United States.

In all that time, they have only executed to small sub-sections of communities in only four markets, yet the primary affect Google wanted has already begun. AT&T (and several other ISPs like Comcast) have already started rolling out their own competing high-speed fiber broadband to most of the areas that Google is targeting, even before Google starts rolling out in those areas. Unsurprisingly, these companies were not doing this before Google threatened to do it first.

Obviously AT&T, Comcast and others are trying to preemptively attack the market so that customers will not be enticed to switch to Google when Google Fiber finally comes to their area. Why bother switching when they already have a great deal on a fiber connection from their current provider?

Of course, this is likely what Google had in mind the whole time. What better way to spur U.S. ISP companies to upgrade their tech than to threaten to compete with them directly? Ultimately, Google probably doesn't care much about being in the ISP business. They simply want the U.S. (and the world) to adopt true broadband technology so they can increase the speed and frequency of Google ads pushing out to consumers. Google Fiber is simply the perfect way to "light a fire" under the feet of the various ISPs to finally innovate.

Jill Szuchmacher, Director of expansion of the Fiber project for Mountain View, California-based Google said, “Our long-term goal is to create abundance in terms of connectivity and speed where there’s a scarcity. In the cities where we are offering service, we have seen an increase in competitive offerings.” In all likelihood, every time Google sees this happen, they are smiling on the inside.

Source: Google Gets Beaten to the Punch by AT&T on Super-Fast Broadband

 

[IIGood]

But how does their pricing compare to Google's offerings?

 

[leeshor]

That appears to be a small problem. AT&T is offering Gigabit, (GigaPower), service in many areas of North Atlanta at a rate that is less than whet they are charging where there aren't current plans for Google, ($70/mo). They do have pretty wide coverage. 2 years ago I would have been told I was crazy to suggest AT&T would offer GB service much less for $70. That's typically $40 less than what they charge where Google hasn't announced plans to set up shop. My understanding is that Google planned to charge the same for GB service and they are starting their roll-out here in limited locations. Comcast is also getting in on the act. Same speed, same pricing. If it wasn't for Google we wouldn't have those options here.

 

[IIGood]

I guess as Google breaks into certain markets it could somewhat cause the other services to adjust pricing accordingly to compete more.

In my area, there is no Google Fiber service. No plans for it to come here either, at least not yet (the Baltimore region lobbied for it but lost). The only options here are FiOS, Xfinity, or satellite (AT&T isn't even a thing here). I haven't bothered to pay attention to Xfinity...there's no way I'd want to be associated with Comcast at this point due to previous dealings with them. FiOS' fastest offering is 500 Mbps and that runs a whopping $269.99/mo...just for the internet portion alone.

I see Google's offering for TV and internet run $130/mo...for gigabit speeds. That's about $30 more per month than I pay now for FiOS' basic offerings (25 Mbps internet and "basic cable" HD channel lineup).