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Google Fiber Offering New $15 for 25Mbps Plan for Low Income Families in Kansas City

google fiber truckGoogle Fiber has quietly unveiled its own discount Internet plan for the income-challenged that vastly simplifies the hoops consumers have to successfully jump through to enroll.

Relying on Census block and FCC broadband availability data, Google proposes to sell residents of Kansas City living in areas identified as having a sustained digital divide a 25Mbps Internet plan for $15 a month. The new plan is accompanied by totally free connections and service for residents of select subsidized housing — mostly apartment buildings.

The new service offerings will replace Google’s 5Mbps free service option, which was dropped from Google Fiber’s menu this week. Google previously charged residents a $300 installation fee to qualify for free service which proved to be an insurmountable challenge for many paycheck-to-paycheck residents who did not realize Google would also accept $10 monthly installments for 30 months.

The choice of 25Mbps happens to coincide with the FCC’s official minimum speed designation to qualify as “broadband.” Google hopes the low-priced broadband option will inspire residents living in broadband-sparse neighborhoods to sign up for service. Currently, most low-income residents not subscribed to fixed broadband rely on their cell phones for Internet access. Google makes its money providing search results and accompanying contextual advertising, and home broadband service remains an important part of Google’s ad revenue stream.

Google’s plan avoids the intrusive qualification requirements most phone and cable companies insist on to receive discounted Internet service. Comcast, among others, demands evidence of school-age children enrolled in the federal school lunch program, and forbids participation to current customers who manage to already scrape together enough to pay for broadband service. Google’s plan relies on a potential customer’s location and avoids income tests and paperwork, opening its program to childless couples, young singles, and seniors.

Google’s $15 Broadband plan features:

  • $15 a month
  • 25Mbps upload and download speeds
  • No data caps
  • No application process or contracts
  • No equipment rental and no construction or installation fees

Residents of Kansas City can determine their eligibility on or after May 19, 2016 on this website.

Google Fiber Announces $10 Landline Phone Service

google phoneAlthough tens of millions of Americans have pulled the plug on landlines in favor of their mobile phones, there is still a market for affordable landline phone service, especially if you hate talking on cellphones.

Today Google Fiber has announced Fiber Phone, a new $10 phone line with unlimited local/nationwide calling, Google Voice rates for international calls, and package of phone features and voicemail that includes reliable access to 911.

Customers signing up will get a portable Voice Over IP box similar in style to those supplied by cable companies and VoIP providers like Vonage. It is designed to connect to your home’s existing phones and your Google Fiber service, but can also be taken with you on trips.

“We’ll be introducing Fiber Phone in a few areas to start,” Google writes in a blog post. “Over time, we’ll roll out Fiber Phone as an option to residential customers in all of our Fiber cities. Once we bring the service to your area, you can sign up and get the service through a simple installation process. To stay updated on the latest, sign up here.”

Google Fiber has offered TV and broadband service in a “double play” package since its start, but steered clear of phone service due to the complexity of local, state and federal regulations, especially pertaining to 911 service. Google apparently has overcome those challenges.

Google Fiber’s Contractors Create Headaches for Austin Residents

Flash flooding in a neighborhood where storm drains were blocked by construction debris. (Image: Adolfo Romero)

Flash flooding in a neighborhood where storm drains were blocked by Google’s construction debris. (Image: Adolfo Romero)

Some Austin residents are fuming over the sloppy construction work and eyesores left by contractors hired by Google to install its fiber optic service.

Last year, 254 formal complaints were filed against Google and its contractors, by far the largest compared with AT&T and Time Warner Cable, which are also in the process of upgrading their networks in the city.

The epicenter of construction nightmares for homeowners is on Lambs Lane in Southeast Austin, where last October a flash flood allegedly caused by Google’s construction crews blocking nearby storm drains brought two feet of water into the home of Arnulfo and Dolores Cruz, causing $100,000 in damages.

Oregon Lawmakers Write Loophole for Google Fiber That Will Save Comcast Millions Instead

bank_error_in_your_favorFrom the Department of Unintended Consequences, Comcast will likely be the biggest benefactor of a new Oregon law intended to attract Google Fiber to Portland.

The Oregon Legislature rewrote the state’s tax laws after learning Google objected to Oregon’s concept of “central assessment,” which calculates local property taxes partly on the value of a company’s brand. The tax policy proved so contentious, Comcast spent years fighting the tax before ultimately losing its appeal before the Oregon Supreme Court in 2014. After two years of lobbying Google to come to Portland, nothing short of a repeal or exemption of this tax policy was likely to get the search engine giant to reconsider.

Comcast officials must not have believed their luck when state lawmakers resolved the tax problem for them, all because of efforts to woo Google back to the state. Legislators proposed a tax exemption for companies that agreed to invest in gigabit speed broadband and deliver it to the majority of the state’s broadband customers. The new law was a clear invitation to Google to begin wiring the state for fiber, but Comcast has crashed the party instead.

Comcast officials argue their own new “Gigabit Pro” service qualifies the cable company for the same tax exemptions Oregon intended Google to receive, despite the fact its 2-gigabit offering costs a fortune and is unlikely to attract more than a fraction of Comcast customers.

gigabit proOregon lawmakers wrote a law seeking to assure equal access by prohibiting companies from targeting only affluent neighborhoods for fiber upgrades, while forgetting to consider the cost of the service itself. Gigabit Pro will never feature prominently in Portland’s challenged neighborhoods at a cost of $4,600 for service during the first year.

Lawmakers now face the wrath of several local tax authorities that report they’ll lose tens of millions in tax revenue if Comcast successfully applies for an exemption. Staff members of the Oregon Public Utility Commission believes Comcast ultimately will qualify for that exemption, even if only a few customers pay Comcast’s asking price for gigabit service.

“If the application is approved, schools, libraries and local governments across the state would receive significantly less revenue,” wrote Mary Beth Henry, director of Portland’s Office of Community Technology, in a letter to state regulators. “This application was not the kind anticipated by the Legislature.”

Portland officials argue Comcast is violating the spirit of the new broadly written law by pricing its fiber service at $300 a month, far out of reach of most households. Google Fiber typically charges $70 for its gigabit service.

Critics of the legislature contend this isn’t the first instance of the Oregon body making a mess of things. In addition to not bothering to define what qualifies as “affordable” Internet, how much companies had to spend to offer it, or how many customers had to actually sign up for the service, language in the original bill accidentally left Google Fiber off the exemption list.

Newest Google Fiber Cities Rely on Pre-Existing Fiber Networks; Is Google Cost-Cutting?

google fiberTwo of Google Fiber’s newest fiber cities will only get the gigabit fiber-to-the-home service because someone else already laid the fiber.

In the last week, residents of San Francisco and Huntsville, Ala. were told they were next in line for Google Fiber service. But instead of proposing to build a citywide fiber network for all residents, Google will rely almost entirely on pre-existing fiber networks they will use to reach customers.

In San Francisco, only an unspecified portion of the metro area will qualify for Google Fiber, namely certain apartments, condos, and subsidized housing units already served by a fiber optic connection. Single family homes and apartments not currently connected to fiber may never qualify for Google’s service.

A Google Fiber executive seemed to signal Google may be taking a harder look at the cost of building fiber service, and future expansion may rely on renting space on someone else’s cable.

“To date, we’ve focused mostly on building fiber-optic networks from scratch,” said Michael Slinger, Google Fiber’s business operations director. “Now, as Google Fiber grows, we’re looking for more ways to serve cities of different shapes and sizes.”

That suddenly makes existing municipal and private dark fiber networks very attractive and in demand. Many municipalities have underused institutional fiber networks that serve anchor institutions, public safety, and government offices. Public access is often limited to non-existent. The prospect of Google paying to use those networks to reach more customers may prove attractive to cash-strapped cities. Private fiber overbuilders and those with excess capacity may also find a new revenue stream renting space to the search engine giant. In Huntsville, Google will have non-exclusive access to the city’s publicly owned fiber network. Any competitor could technically offer their services over the same network.

Competitors and analysts seemed ready to dismiss Google’s latest expansion announcements. Diffusion Group analyst Joel Espelien told the San Jose Mercury News Google Fiber’s plans to wire affordable housing in San Francisco was nothing more than “pure PR.” He’s unimpressed with Google Fiber generally, dismissing it as “Costco Internet,” delivering bulk sized connections at prices most consumers are unaccustomed to paying for Internet access.

“It’s both cheap and it isn’t cheap,” Espelien said. “It kind of depends on your point of view.”

Google’s reasons to offer service to only a few locations in San Francisco are clearly pegged to the costs of wiring the entire city.

“We considered a number of factors, including the city’s rolling hills, miles of coastline, and historic neighborhoods,” Google said in a blog post. All of those features that tourists love to see are also expensive because of costly engineering efforts to hide the cables from view to stay within zoning regulations.

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