Google Inc. (NASDAQ:GOOG) got quite a few headlines when it launched its experimental Google Fiber project in Kansas City last year, a project that provides super-high-speed broadband Internet service to the metro area. Google is boasting its broadband speed to be as much as 100 times faster than the average broadband network currently in the U.S. market. This week, Google received permission to expand its experiment into competitive waters where AT&T Inc. (NYSE:T) and Comcast Corporation (NASDAQ:CMCSA) already reside.
It is reported that Google Inc. (NASDAQ:GOOG) has received the go-ahead from the Olathe, Kan., City Council this week to proceed with its buildout of its Google Fiber broadband network into Olathe, a suburb of Kansas City with a population of about 125,000. There are already two broadband cable television and Internet providers in this modest city – AT&T Inc. (NYSE:T) and Comcast Corporation (NASDAQ:CMCSA). While Comcast has not officially spoken yet abut the new competition in the market, AT&T was more open. But, the company stated that while it encourages competition, it did want to emphasize the desire for equal treatment among all competitors in the market – a veiled inference that perhaps Google got a deal on its contract that perhaps AT&T did not receive.
In its statement about the Google Inc. (NASDAQ:GOOG) Fiber deal in Olathe, AT&T Inc. (NYSE:T) said, “AT&T welcomes the competition since more broadband options greatly benefit Kansas and its consumers, but it is imperative that all service providers are treated equally under the law and can equally benefit from the negotiations that reduce and remove regulatory obstacles to broadband deployment. We are pleased that we were able to work out a similar agreement with Kansas City, Missouri.”
What are your thoughts about Google Inc. (NASDAQ:GOOG) and its broadband experiment? Should providers like AT&T Inc. (NYSE:T) and Comcast Corporation (NASDAQ:CMCSA) be worried about this becoming a full-fledged nationwide service? Let us know your thoughts int he comments section below.
DISCLOSURE: I own no positions in any stock mentioned.
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