Google Fiber graduates in Kansas City, while Comcast and company fall behind
It’s been six years since Google revealed its intention of laying the foundation for a broadband cable and TV service that would compete directly with Comcast, TWC and Verizon.
The pilot program, announced in 2012, provided almost 30,000 subscribers with television and Internet service to residents of around 20 suburbs around Kansas City, and 120,000 customers by the end of 2015, as it gradually expanded to Provo UT, Austin TX, and Atlanta GA.
Recently, Google Fiber, under the latest restructuring of its umbrella company Alphabet Inc. has finally graduated from its experimental status, and moved on to offer speeds up to 100Mbps, for as low as $50 per month.
While $50 per month is a massive bargain, compared to what the existing Big Cable players have to offer, Google Fiber is planning to expand its offerings with even more affordable plans for low-income residents, including a $15 per month subscription that includes 25 Mbps symmetrical speeds, which means that both upload and download speeds will be 25 Mbps. the special offer will be available exclusively in low-income areas where the percentage of subscribers is particularly low. In addition, Google Fiber will waive installation and setup fees.
Other programs currently agreed upon between Alphabet Inc. and the Obama administration, also entail free Internet access to public housing.
The recently published subscription plans suggest that Google Fiber might be ready to begin its expansion to more cities in the United States, as shown on the map available on Google Fiber’s website.
Why this matters
The issue with cable companies is with their emphasis on bundled television content, in a world that is quickly outgrowing the need for DVRs and scheduled “appointments” with their TV screens.
Streaming set-top boxes like Apple TV and Chromecast, allow to enjoy television content on virtually any display, from a PC monitor, to an 80 inch Smart TV, including live sports events, available through independent a-la-carte subscriptions offered by all major channels, including HBO, CBS, FOX, and TBS.
Cable TV subscribers have been gradually turning into “cord-cutters”, and have been opting for more affordable and flexible subscriptions targeting only the shows they and channels they want to watch, and unsubscribing/re-subscribing as needed, depending on what’s available. For instance, fans of Game of Thrones are expected to cause HBO NOW subscriptions to surge this month, as the 6th season of the show is released.
Companies like Comcast or Verizon can’t afford this type of flexibility, or the bandwidth capacity that Google Fiber is expected to progressively roll out nationwide in future years, making Alphabet Inc. central to the disruption of the industry of cable TV.