Google offers only two tiers of service for its residential broadband service: a 1Gbps service for $70 a month and a 5Mbps service that is free with a $300 fiber installation fee that can be paid for over two years. While the 1Gbps service is slightly higher than the $40 to $50 most consumers pay each month for broadband, it’s still a better value.
Those other services priced at that amount generally only offer 5Mbps to 10Mbps of download speeds and even slower upload connections. Providers that are offering 100Mbps of broadband service are charging $300 or $400 a month. At $70 for 1Gbps, Google Fiber is simply a better value. It offers 10 times the capacity for less than a third or a quarter of the cost. Even providers that can offer 1Gbps of service are charging over $1,000 a month for that service.
Newsflash: if you offer an amazing service in a sea of shitty ones, people will not only pay for it, they’ll beg for the option to pay for it. This tends to create “moneymakers”.
Welcome to the Google Fiberhood. (at Google Fiber Space)
I mean, cool. But it also sort of looks like they slapped some logos on top of an old, dilapidated Blockbuster.
Also, is this the drab filter, or does Kansas City really look like this?
Such a great logo.
Oh, and a good post by Anthony Crupi for AdWeek: Legacy Cable Operators in Austin Are Terrified of Google Fiber.
On paper, literally everything about Google Fiber makes standard digital-cable service look like something that was cobbled together by members of a lesser phylum. Boasting gigabit download/upload speeds (up to 1,000 Megabits per second), Google’s connectivity is roughly 70 times faster than Time Warner Cable’s standard 15 Mbps plan.
The incumbents are scared shitless. And rightfully so. For far too long they’ve coasted on their over-priced crap services.
Stacey Higginbotham for GigaOm:
And that’s one of the biggest repercussions of Google’s fiber roll outs. The more people who can pay $70 for gigabit service (or get 5 Mbps for free), the more pressure this puts on the existing providers to upgrade their networks and cut anticonsumer crap like data caps. But that’s exactly why more cities need these networks.
Google is very good at the do-something-to-pressure-others-to-do-it maneuver — which I appreciate.
I bought a house in Kansas City on Monday. It’s next door to the Homes for Hackers and KC Startup Village. It will have Google Fiber in it. I hope it becomes an integral part of the nation’s first Google Fiberhood.
I’m not going to be living in it. Instead, I’m going to let entrepreneurs live / work in it. Rent free. As part of helping create the Kansas City startup community. And to learn about the dynamics of Google Fiber. And to have some fun.
Brilliant idea. Entrepreneurs can apply here.
This is exactly why it’s so hard to disrupt the industry perhaps most in need of disruption. I still think wireless options will ultimately be more viable, and the way this happens. And make no mistake, it will happen.
David Cay Johnston in an op-ed for The New York Times:
SINCE 1974, when the Justice Department sued to break up the Ma Bell phone monopoly, Americans have been told that competition in telecommunications would produce innovation, better service and lower prices.
What we’ve witnessed instead is low-quality service and prices that are higher than a truly competitive market would bring.
The remedy for these anti-consumer practices is straightforward: bring back real competition to the telecom industry. The Federal Communications Commission, the Justice Department and lawmakers have long said this is their goal. But absent new rules that promote vigorous competition among telecom companies, it simply won’t happen.
This is a major problem for the U.S. — especially with regard to high-speed internet connections. Google may well have a solution with their fiber, but I’m concerned that’s going to take decades to roll out everywhere (if it ever does). Buying/building a carrier really may be the best option.
Asked by Anonymous
No, they would not. I don’t see that happening.
Milo Medin of Google:
It’s easy to forget how revolutionary high-speed Internet access was in the 1990s. Not only did broadband kill the screeching sound of dial-up, it also spurred innovation, helping to create amazing new services as well as new job opportunities for many thousands of Americans. But today the Internet is not as fast as it should be. While high speed technology exists, the average Internet speed in the U.S. is still only 5.8 megabits per second (Mbps)—slightly faster than the maximum speed available 16 years ago when residential broadband was first introduced.
Google has just started offering Kansas City residents their Fiber service with 1,000 Mbps download and upload speeds. Yes, you read that correctly.
And: no bandwidth caps. Boom.
It’s $70-per-month, which is about what I pay Comcast for my shitty 10 Mbps service (which it never actually hits — and has a cap). Google also includes 1 TB of storage with this fee (via Google Drive).
Or you can pay $120-per-month and get TV service as well. With a 2 TB DVR. And a Nexus 7 to control the set top box.
If you’re not ready for Gigabit Internet, you can settle for 5 Mbps service. Why the hell would you do that? Well, it’s free (with a one-time set up fee). Yep, Google is giving away the service I pay Comcast an obscene amount of money for.
Amazing. Bravo, Google. Now please bring this everywhere in the U.S. and force the cable companies to get busy innovating or get busy dying.