SAN FRANCISCO BAY AREA - Google really wants to offer ultra-fast Online sites in 34 more cities scattered across eight states in the business's boldest challenge to cable and telecommunications providers.
The ambitious expansion of "Google Fiber" announced Wednesday targets major U. S. cities including Atlanta; Phoenix; Portland, Ore.; San Antonio and elements of the San francisco bay area Bay Area.
The service derives its name from the fiber-optic cables that Google installs to provide on line data in place of clunky copper lines. The sleeker technology allows Google Fibre clients to surf the net at a speed of 1 gigabit per 2nd, around 100 times faster than existing broadband services. Google Fibre boasts that its service can down load a whole movie in under two minutes.
The plans to go in to so a great many other cities will be the clearest sign yet that Google, already the Internet's most effective Internet company, intends to become bigger player in providing usage of the net, too. Launched being an experimental project this year, Google Fibre up to now is obtainable in Kansas City, Kan.; Kansas City, Mo. and Provo, Utah. It really is arriving at Austin, Texas later this season.
Since it enters more markets, Google is hoping your competition will prod existing Online sites providers such as for example Comcast, Verizon Communications and AT&T Inc. to upgrade their networks to allow them to run at faster speeds. Google figures it could still benefit for the reason that scenario if the improvements to rival networks spur more Web surfing.
But four of the biggest U. S. urban centers - Ny, La, Chicago and Philadelphia - aren't on Google's list. Those are at U. S. markets where either Comcast Corp. or Time Warner Cable Inc. has emerged as a respected provider of high-speed Online sites. Comcast the other day announced plans to get Time Warner Cable for $45 billion in a deal already facing resistance from consumer rights groups worried that the combination will drive up charges for broadband and cable television.
Charges for Google Fibre are comparable or below what most house holds already pay. Like in both Kansas City markets, Google Fibre charges about $70 monthly for high-speed Online sites. A package that bundles the net service with an increase of than 100 high-definition tv channels costs about $120 monthly.
Google's ownership of some the Internet's most lucrative advertising networks and heavily trafficked services such its YouTube video site provides company a robust incentive to create it less expensive and enjoyable to invest time on line. Google CEO Larry Page is hoping the business could make additional money from adverts along with other services if faster connections and a proliferation of computing devices could make the net a lot more addictive than it already is for tens of thousands of people.
"People do more of what they love on the net once the speeds are fast plus they leave when things are slow, " said Kevin Lo, general manager of Google Fibre.
Even though Google believes it could earn more income on the long haul if Internet speeds are faster, its decision to create ultra-fast access networks has unnerved some investors who be worried about how much cash all of the projects will definitely cost. Lo declined to estimate just how much Google would need to spend to wire all 34 cities on its wish list, but said the expense of fibre optic has been steadily declining.
Google Inc. 's blueprint for building more fiber-optic networks is tentative as the company still must workout logistics over problems such as for example construction and traffic with municipality leaders.
An update which cities will in actuality get Google Fibre is meant to be provided later this season. It might then just take yet another couple of years prior to the service comes in the selected cities.
If Google realizes its goal, the business provides high-speed Online sites in these additional cities: Phoenix; Scottsdale, Ariz.; Tempe, Ariz.; San Jose, Calif.; Santa Clara, Calif.; Sunnyvale, Calif.; its hometown of Mountain View, Calif.; Palo Alto, Calif.; Atlanta; Avondale Estates, Ga.; Brookhaven, Ga.; College Park, Ga.; Decatur, Ga.; East Point, Ga.; Hapeville, Ga.; Sandy Springs, Ga.; Smyrna, Ga.; Nashville, Tenn.; Charlotte, N. C.; Carrboro, Cary, N. C.; Chapel Hill, N. C.; Durham, N. C.; Garner, N. C.; Morrisville, N. C.; Raleigh, N. C.; Portland, Ore.; Beaverton, Ore.; Hillsboro, Ore.; Gresham, Ore. ' Lake Oswego, Ore; Tigard, Ore.; San Antonio; and Salt Lake City.
Google can simply spend the money for investment. The business ended this past year with $59 billion in cash. The business's stock dipped $8. 54 to close Wednesday at $1, 202. 34.
