Regular readers will have noticed my comments about the lack of real competition in the US fixed broadband market thank you to very cosy deals arranged by incumbent cable-TV and telecommunications companies and various governments on a state and federal level.
Google have just rolled out their Google Fiber FTTP broadband service, known for offering headline data-transfer speeds of a gigabit each way, into Kansas City. Now Comcast and Time Warner Cable, for fear of hemorrhaging cable-broadband customers to Google, have upped their cable Internet service’s headline data-transfer speeds without charging their customers a single penny extra for the upgrade.
Issues have been raised about the pricing and customer-service behavior of cable-TV companies when they are faced with real competition beyond the DSL service offered by the incumbent telco. This has come in to play during discussions concerning the proposed merger between Comcast and Time-Warner Cable, as well as the issue of Net Neutrality.
As well, I would see the Google Fiber rollout as a boost for local government in Kansas City because the properties in the area that have Google Fiber past their doors become increasingly valuable to live in or do business there. It is a similar situation that has happened in various UK neighbourhoods where houses are assessed by prospective buyers on whether next-generation broadband is passing their doors or the property is connected to a next-generation broadband service.
Who knows what this means for other US cities who are pushing Google for their fibre-optic service?