Markets

Comcast and Time Warner Should be Terrified of Google Fiber, Internet Users Should Rejoice

When Google launched its fiber Internet network, Google Fiber, it was clear that one possible impact would be increased competition in the notoriously noncompetitive home Internet space.

And that's exactly what happened.

In Kansas City, one of Google Fiber's first locations, both Time Warner Cable and Comcast bumped up their Internet speeds this week -- sometimes by more than double -- while keeping the same monthly price.

Google Fiber logo. Source: Google.

Aside from Comcast and Time Warner upping their speeds, Google Fiber has taken onAT&T 's U-verse with GigaPower service as well. A few months ago, Google announced that Fiber would come to Raleigh and Durham in North Carolina, where AT&T already offers high-speed service. Last year, AT&T announced it would bring its service to Austin, Texas, just a day after Google said it would come to the city.

One reason Google likely wants to expand its own Internet service is to ensure it isn't controlled by the biggest Internet juggernauts in the U.S. Think of how Netflix paid Verizon and Comcast to make sure its video streaming service receives fast connection speeds in certain markets.

In February, Google announced that it was considering expanding Fiber into 34 new cities. Though it's unlikely the company will come to all of them soon, the possible expansion shows just how serious the company is about taking on the Internet service industry.

Earlier this year, Carlos Kirjner of Bernstein Research wrote that Google Fiber's growth might not bring the Internet giants down right now, but could bring big changes in the future: "It may not make a huge difference for Google or for the incumbents in the next one, two or three years, but Google is taking the long view and we think in five or more years, it could turn out to be a significant, profitable business for Google and headwind for incumbents."

With Comcast and Time Warner already responding in markets in which Google Fiber is growing, this may just be the beginning of real competition in the home broadband space.

Leaked: Apple's next smart device (warning, it may shock you)

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here !

The article Comcast and Time Warner Should be Terrified of Google Fiber, Internet Users Should Rejoice originally appeared on Fool.com.

Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends Apple, Netflix, Google (A shares), and Google (C shares). The Motley Fool owns shares of Apple, Netflix, Google (A shares), and Google (C shares). Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

AAON GOOGL GOOG

Other Topics

Stocks

Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More