Google Fiber Scares Old-School Net Providers Into Action

Entrenched broadband providers like Verizon, Time Warner Cable and Comcast have been slow to respond to the threat posed by Google Fiber, the ultra high speed internet service that the search giant is rolling out in Kansas City. But the giants are finally starting to awaken since Google announced that it is expanding into other markets, including Austin, Texas and Provo, Utah.
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Entrenched broadband providers like Verizon, Time Warner Cable and Comcast have been slow to respond to the threat posed by Google Fiber, the ultra-high-speed internet service that the search giant is rolling out in Kansas City. But the giants are finally starting to awaken since Google announced that it is expanding into other markets, including Austin, Texas and Provo, Utah.

Time Warner Cable announced on Wednesday that it's building a citywide wireless internet service in Austin that will be available to the company's internet subscribers for no additional charge. The service is already available in the Barton Springs-Zilker Park area, and the company plans to expand into hundreds of other locations, beginning with popular public spaces. Those without a qualifying internet plan from the company will be able to pay for access, starting at $2.95 an hour.

Earlier this month, AT&T announced plans to built its own fiber network in Austin, complete with gigabit speeds.

It's a change in attitude. Previously, the big internet service providers were reluctant to embrace super-high-speed services. In 2012, Verizon decided to halt plans to expand its FIOS fiber internet service, and more recently, when asked at a conference if Time Warner Cable saw Google Fiber as a threat, chief financial officer Irene Esteves said that customers weren't interested in the gigabit speeds that Google has on offer.

But Google Fiber doesn't just provide high speed internet and television. It also offers a nearly free service internet service more in line with what customers can already expect from cable or DSL. For a one time $300 setup fee, Google Fiber subscribers in Kansas City can get a 5Mbps connection for at least seven years. The company is promising similar plans in Austin and Provo. It's this "free" service that might finally be spurring competitors into action.

Google Fiber was originally meant to stimulate the stagnant broadband industry. The initial apathy of the big providers might be what prompted Google to expand beyond a single city. Now that the giants are paying attention, this movement will only get more interesting.