) has announced that it would expand its high-speed Internet
service through its fiber-optic network to Olathe, a Kansas City
suburb with around 125,000 residents.
The Internet and video service named Google Fiber will mark
the company's first expansion that will compete with local cable
companies outside of Kansas City, Kan., and Kansas City,
Google stated that its proposed rollout of the Internet
service has been approved by the council of the Olathe city but
did not specify the time by which the service would be available.
Google Fiber will provide speed of 1 gigabit (GB) per second,
significantly faster than the average U.S. Internet speed.
Google offers its Internet service under three plans. In the
first one, the residents have to pay $70.0 a month solely for the
Internet connection. The second one is for $120.0, which 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 and the
customers need to pay a one-time installation fee of $300.
Google is banking on its speed to attract users. This can open
further avenues for other new online services and can help Google
to expand its online offerings.
According to Global Industry Analysts, Inc. (GIA), the fiber
optic components market is expected to reach $42.0 billion by
2017 globally. Fiber optic technology is witnessing decent growth
as the speed of data transfer offered by the networks is highly
prioritized. Advanced applications, PCs and network servers
demand high speed and the optical fiber cable can support high
Google has always spent handsomely on research and development
to launch new and innovative products. Recently, Google announced
a new product, Google Keep, a tool that allows users to create
notes and lists that are synced across all the devices.
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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