Reportedly, search giant
) has announced the expansion of its high-speed Internet service
through its fiber-optic network to Shawnee, located outside
Google's ultra high speed service named Google Fiber is
already available in Kansas City. Last month,the company
announced its plans to expand the service to Provo, Utah and
Austin, Texas. Google has not yet mentioned an exact date for
rolling out Google Fiber in Shawnee.
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 $300.
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 successful, Google TV could catch on fast.
In the first quarter of fiscal 2013, Google reported solid
earnings of $10.07, exceeding the Zacks Consensus Estimate by
$1.24. Google's gross revenue (including total traffic
acquisition costs[TAC]) came in at $13.97 billion, representing a
year-over-year increase of 31.2%. However, revenues excluding TAC
came in at $11.0 billion, 12.7% lower than our estimated $12.6
Google has a Zacks Rank #3 (Hold). Other stocks that have been
performing well and are worth considering include
).While Yahoo carries a Zacks Rank #1 (Strong Buy), Facebook and
Akamaicarry a Zacks Rank #2 (Buy).
AKAMAI TECH (AKAM): Free Stock Analysis
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