Reportedly, search giant
) is all set to expand its high-speed Internet service through
its fiber-optic network to Austin, Texas. The official
announcement is likely to be made next week.
Google launched its high speed Internet service named Google
Fiber in Kansas City, Mo in Sep 2012 and recently expanded the
service to Olathe, a Kansas City suburb.
Google provides the service under three plans. In the first
one, the residents pay $70.0 a month solely for the Internet
connection. The second plan comes at a price of $120.0 and offers
TV service, a digital video recorder and a set-top box along with
a tablet-computer remote control. The third option offers seven
years of free Internet access at slower speeds for which the
customer needs to pay a one-time installation fee of
Google is banking on its speed to attract users. This can open
another growth avenue for the company as speed has been the
limiting factor for increased consumption of video and other
data-heavy activities through the Internet. Whether Google can
make it commercially viable is still not clear because others
(Verizon and AT&T) have previously tried and failed.
However, if it is successful, Google TV could catch on
In the fourth quarter of fiscal 2012, Google's gross revenue
(including TAC) touched a record $14.4 billion, representing
sequential and year-over-year increases of 2.3% and 36.2%,
respectively. Excluding the $1.5 billion contribution from
Motorola, revenues were up 21.9% from the year-ago quarter.
Google has a Zacks Rank #3 (Hold). Other stocks that have been
performing well and are worth considering include
), all carrying a Zacks Rank #2 (Buy).
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