Why Isn’t Verizon Communications Inc. (VZ) Scared of Google Inc (GOOG) Fiber?

Furthermore, Google Inc (NASDAQ:GOOG) Fiber is highly unlikely to compete on a national level and may always be a regional player due to the extensive costs of building out infrastructure. Even if Big G were to grab 100% market share in all of its announced markets, that’s still just 0.2% of the entire domestic market. Reaching everyone would cost too much.

Verizon Communications Inc. (NYSE:VZ)’s not the only one unperturbed by Google Inc (NASDAQ:GOOG)’s overtures. Comcast Corporation (NASDAQ:CMCSA) has argued that people can’t handle such high speeds, since most consumers don’t have adequate hardware to fully tap gigabit connections. Time Warner Cable Inc (NYSE:TWC) says there’s no demand for blazing-fast Internet.

There might not be demand at the prices that incumbents charge for such high speeds, but the $70 that Google Inc (NASDAQ:GOOG) charges in Kansas City is a no-brainer. One of these days in the distant future, Google might be able to liberate us from cable captivity, but today is not that day — and the cable industry knows it.

The article Why Isn’t Verizon Scared of Google Fiber? originally appeared on Fool.com.

Fool contributor Evan Niu, CFA, owns shares of Verizon Communications (NYSE:VZ). The Motley Fool recommends Amazon.com, Google, Netflix, and Vodafone Group (LSE:VOD). The Motley Fool owns shares of Amazon.com, Google, and Netflix.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.