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Google formally announced its new fiber to the home service to residents of Kansas City today with game-changing pricing for broadband and television service.
For $70 a month, Google will deliver consumers unlimited 1Gbps broadband service. For an additional $50 a month, customers can also receive a robust television package consisting of hundreds of digital HD channels, and throw in a free tablet (they call it ‘the remote control’), free router, free DVR with hundreds of hours of storage, and access to Google’s cloud backup servers.
Google has also found a solution to affordable Internet for poorer residents. The company is promising free 5/1Mbps service for up to seven years if customers will pay a $300 installation charge, payable in $25 installments.
Customers who agree to sign up for multiple services and a service contract can waive the $300 installation charge.
Google’s new service will roll out to different areas of Kansas City. Google has split neighborhoods into “fiberhoods” that consist of around 800 homes. In a masterful public relations and public policy demonstration, Google intends to show up the cable and phone companies who have repeatedly declared customers have no interest in fiber-fast broadband speeds by asking would-be customers to pre-register for Google Fiber, which will cost $10. Those “fiberhoods” with the largest number of pre-registrations will be the first to get Google’s new fiber service. At least 80 families (around 10%) of each “fiberhood” will have to be willing to sign up for Google to activate the service in each neighborhood.
Google hopes consumers will evangelize the possibilities of fiber broadband with friends and neighbors nearby and get them on board. If the telecom industry’s predictions of lukewarm interest are true, then Google won’t collect many $10 registrations and will not be able to publicize the number of customers who want nothing more to do with incumbent cable and phone companies. If Google is correct, they will have successfully proven America’s phone and cable companies have been dramatically overcharging Americans for service and large numbers are clamoring for a better choice.
http://www.phillipdampier.com/video/Google Fiber In Kansas City 7-26-12.flvGoogle’s formal introduction of Google Fiber in Kansas City this morning. Presentation begins at around the five minute mark. (1 hour, 6 minutes)
Google has the goods to entice technology fanatics. Those signing up for television service will find Google has moved way beyond the traditional cable set top box that still won’t reliably record your favorite shows. Google will supply customers with:
- a free Nexus 7 tablet that will come pre-programmed to function as a remote control (but can be used for other things);
- a Bluetooth-based traditional remote;
- a combination set top box and DVR system that can record up to 500 hours of programming;
- a Wi-Fi enabled Gigabit router;
- an iOS (Android coming, of course) app that will let viewers manage everything over their tablet or mobile phone;
- a 2TB storage locker;
- a free terabyte of Google Cloud storage
But Google’s current television lineup does omit many popular cable networks, either in an effort to control programming costs or because the company has not completed negotiations with every programmer they want on the lineup. Among the missing:
- ESPN and regional sports networks
- Disney networks
- Turner networks like TNT, TBS and Turner Classic Movies
- Rainbow Networks’ AMC
- Time Warner-owned channels like HBO, CNN and TruTV
- Fox-owned networks like Fox News Channel and Fox Business News
Time Warner Cable’s response to Google’s network seems to indicate, publicly at least, they are not that worried.
“Kansas City has been a highly competitive market for a long time and we take all competitors seriously,” said spokesman Justin Venech. “We have a robust and adaptable network, advanced products and services available today, and experienced local employees delivering local service. We are confident in our ability to compete.”
Other stories of interest:
- Back to Kansas City: Google Fiber Now Going in the Ground; TV Service Also Announced
- Breaking News: Google Selects Kansas City, Kansas for 1Gbps Fiber to the Home Service
- How Does Google Fiber’s Gigabit Broadband Change Kansas City?
- Google Fiber Launches Next Week in Kansas City
- Kansas City Reacts to Google Fiber Project
…as TWC is quietly crapping its pants…since Internet access, its more profitable component, just had its parade rained on. At the low end, Google is nearly giving away 5/1. At the high end, Google is selling gigabit symmetric for the same price that TWC charges for 30/5. Well, the same price they *were* charging anyway…my bet is that TWC will decrease promotional Internet rates (for twelve months) if people sign a contract with TWC in KC.
My bet is that TWC will milk the lack of ESPN/AMC/etc. for all it’s worth to customers who might want to switch to Google Fiber.
A few other tidbits:
1. The install fee is waived if you sign up for a year or two of service, depending on which package you choose (two years for Internet + TV, one year for internet only).
2. Google’s STBs are probably the most intelligently built out there. DVRing gets done in one location, with up to eight streams at the same time (in HD). The individual STBs are small units that connect to the Storage Box via MoCA (or something similar) and provide an Ethernet port and WiFi wherever they are placed. So anywhere near a TV gets good wireless coverage, plus the ability to hook one or more (via a switch) devices up to a low-latency, more reliable wired connection. Brilliant.
3. The requirements for Google to build out service vary by area. Some are 10%, while others are 5% or 25%. A couple of 5% fiberhoods have already met the requirements for buildout.
4. Google will provide free gigabit access to community institutions within fiberhoods that are built out. Doesn’t cost Google much to do this (since those institutions will probably just do a lot of LAN traffic, or traffic to other Google Fiber/KC users) and has a nice impact for the communities, so it’s a great move for all involved. It’s also a heck of a lot faster than, for example, the 20 Mbps fiber connection my hometown spreads around from Time Warner Cable, or the 10/1 cable connection that the city’s public library has.
“the low end, Google is nearly giving away 5/1. ”
I wouldn’t say that. The subscriber has to pay the $300 install fee. This serves three purposes to Google’s benefit.
1. Instead of absorbing the cost of installation, the subscriber flips the bill.
2. The house is now wired with fiber so future occupants will have it.
3. It takes a broadband subscriber away from a competitor.
To me I think it is a smart move on Google’s part to give it away for 7 years especially when the odds are that that subscriber will more than likely upgrade to either the gigabit package and or the TV/Internet package.
I hope this is a smashing success and they start branching out to other cities quickly.
What i’d like to see Google do is regularly:
1) list their expenses
2) list their revenues
3) list their profits
thus leaving the existing cable and dsl providers to explain why they’re supposedly unable to pull a profit with their long-fully-paid-for equipment and why they’ve got to charge so much for bandwidth that is so cheap it’s not worth metering except for curiosity’s sake.
I also want to know why Google passed over Austin TX, the silicon valley of the bible belt, wahhhhhh!
You and me both. I’m going to guess it’s something to do with Austin not being as friendly to Google hanging fiber everywhere. I would say something about TWC having a big hub in Austin but they do in KC too.
I wouldn’t be worried if I were the other ISPs either. I mean, let’s face it…Google already stated they had pretty much no interest in building this out nationwide. Sure, it shows that face broadband is possible, but with such a very small percentage of people even being able to use it, I don’t see this as becoming some paradigm shift for the internet industry or something…as much as I would like it to be.
I would say they have plenty to worry about. This is more of a “poke in the eye” for the incumbent ISPs. It will prove that there is no need for caps and that you can still be profitable without them. It will also show that people do want faster speeds despite the bs comeback line, “People will never use that much…”. That and we will have to see what comes about with gigabit speeds for that city and how it will bring innovation.
Unless this is more than a one-off demo project, the incumbents will not exactly be shaking in their boots.
But even as a one-off demo, what I like about this is that it puts the lie to the oft-repeated claim that a new facility-based competitor cannot compete against the incumbent monopolies. Obviously if google can make this work, there’s no reason others can’t do the same elsewhere.
So people should stop whining about the so-called “monopolies” and instead put their money where their mouth is!
The way I see it, Google doesn’t have much of a choice if they want to grow out their brand, services, and revenue.
High-speed broadband such as their Fiber gigabit and their extension into the living room are the next big markets right after the huge explosion of “mobile” data.
The existing providers have made it clear in the last 10 years they’re fine with penalizing customers for nominal usage or charge exorbitant rates with overages, all which hurts the future growth of apps and services on the ‘net.
Now if Google sees this as a long term play for service and ad revenue, they know someone with very deep pockets needs to step in, obviously it’s not going to be any of the existing companies, nor will it be the government who just keeps doing favors for the guys responsible for the poor situation were in now. It takes a company like Google with the huge amount of capital they have to roll out service same as Verizon originally with with FIOS.
Once they do get the majority of states wired they’ll will have solved the broadband problem AND they will have solved their living room problem with Google TV by sidestepping and becoming their own provider after being snubbed by the cable and media companies.
If Google does take this direction, the cable and media companies are going to be in a serious world of hurt for trying to block Google TV, as they had a chance to transform and grow with that service working with Google rather than work against Google.
Whether I’m on the right track with their plans will depend entirely on if we see Google add a 2nd city, if that happens.. the game in on and I think we’ll be in for a nice show between them and the cable co’s.
I’m very glad to see Google offering this and the possibility of a new competitor is a huge plus.
However, I still feel the ultimate solution is municipal networks. Each city builds out their own network and spends as much or as little on speed as each community chooses. Google fiber is still a proprietary network. If they were to gain 50% or 60% of the market they would end up being just as evil as the duopolies are now.
“Absolute power corrupts absolutely”
This could have been Austin, TX if our city council had gotten it’s act together and made an appealing offer to Google several years ago. Damnit!
With a 1GB connection coupled with an unlimited premium Usenet service, I could happily live without the channels that Google cannot offer.
A $300 connection fee with free 5/1Mbps service for up to 7 years works out to be $3.57/month, if you use the full 7 years. I’d say that’s a fairly solid deal.