Internet search giant
) recently announced that it would provide the fastest Internet
service through its fiber-optic network and Kansas City, Missouri,
will be the first to enjoy the service.
The Internet service, named Google Fiber, will provide speeds of
1 gigabit (GB) per second, significantly faster than average U.S.
Internet speed. Google ran a selection process in Kansas City where
citizens are required to preregister for the service beforehand.
Google is already offering and marketing the service and it also
has a dedicated website. This Internet service will provide Kansas
residents with an alternative from
Time Warner Cable Inc.
), which is the area's main Internet service provider with a
maximum speed of 50 MB.
Google is launching the Internet service under three plans. In
the first one, the residents will just pay $70.0 a month solely for
the Internet connection. The second one is for $120.0, which will
offer 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 onetime installation fee of
Google is banking on its speed to attract the users. This can
open further avenues for other new online services and can help
Google to expand its online offering.
However, the process of deploying the service might be very slow
and expensive. Users have to register by paying $10.0 and then
Google will verify whether it will be feasible to provide the
connection to the residences or not. While adoption could be
slow and the service could spread even slower, this may be the
right way to ensure profits. Traditional broadband suppliers have
had to freeze their fiber optic plans because of technical
difficulties and expenses.
According to Global Industry Analysts, Inc. (GIA), fiber optic
components market is expected to reach $42.0 by 2012 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 optic fiber cable can support the gigabit speeds.
Google has always spent handsomely on research and development
to launch new and innovative products. Recently, Google announced
that it is testing an eyewear called 'Google Glass', which can
perform smartphone-like functions through voice-activated
In the second quarter, Google's gross revenue touched a record
$12.21 billion. Revenues from both Google-owned and partner sites
continued to grow in double digits on a year-over-year basis.
Google retains a Zacks #3 Rank, which translates into a
short-term Hold rating.
GOOGLE INC-CL A (GOOG): Free Stock Analysis
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