The Promise of Google Fiber

Is The Last Mile here? Two weeks ago, Google dipped its toes into the competitive distribution universe with the launch of Google Fiber in Kansas City, Missouri. The promise: deliver super-high speed Internet. So now the search giant is competing against big telecom and cable broadcast companies like AT&T, Verizon, Comcast.

TV operators, says SNL Kagan, should be very afraid. At $120 per month, Google Fiber subscribers get Internet speeds 172 times faster than the average broadband connection, a 2 terabyte DVR box and some basic cable channels. But the underlying implication for Google is that by speeding up the Web, it can increase ad impressions, which leads to more revenue. Of course, Google believes a faster Internet will make everything — from businesses to education to city development — better.