As some broadband providers grumble about the cost of network upgrades and threaten data caps on subscribers, Google shows them, through its Kansas City Google Fiber project, how to offer subscribers 1Gbps broadband service at an affordable price. Charges are now at $ 70, with 1 TB of storage.
When packaged with its TV service, Google’s services are also priced affordably. And they beat the offerings from local competitors, such as Time Warner Cable. For $120 a month, Kansas City residents can get the 1Gbps broadband service and the Google Fiber TV service plus 1 Terabyte of data in Google’s cloud storage service Google Drive. Google is even throwing in the $200 Google Android Nexus 7 tablet at no additional cost, so that users can use the Android App to control the TV service and even watch TV on their tablet.
And Google is giving away basic broadband service with speeds up to 5Mbps downstream and 1Mbps upstream for free for the next seven years, so long as users pay the $300 cost of hooking the fiber up to their home. A very smart move by Google. The pricing might reflect state of the art infrastructure, but also that Google could be viewing this as a loss leader to provide more access to interactive content, YouTube, and most importantly advertising.
Google has also announced Fiber TV – based on its Fiber project to reinvent TV: http://www.theverge.com/2012/7/26/3188845/google-fiber-tv