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Google (NASDAQ:GOOG) never stops moving. In July, the internet advertisement and search giant became an internet service and cable TV provider in Kansas City by rolling out Google Fiber. Google Fiber provides HD quality TV, and one of the plans includes a 2TB DVR and a Nexus 7 tablet for just $120 a month. There’s also a one-time $300 build fee option which offers free internet at average (slightly slower) speeds. Google Fiber supposedly offers internet 100 times faster than current hook-ups.
Now, rumors are emerging that Google is looking to expand its fiber service outside of Kansas City. Capstone Analyst Rory Maher quotes a source saying, “Google has made it clear more cities will likely be bidding for Fiber soon.”
This could mean a new stage in Google’s life. Ninety-six percent of Google’s revenue is advertising, but Google doesn’t want to only play one game. If it can control not only how people use the web, but how they physically connect to it, they could not only push out the existing cable companies, but gain more leverage against film and traditional advertising. Google can bring tremendous infrastructure value to cities with its Fiber offering, while at the same time gaining enormous power.
Google Fiber threatens cable companies and internet providers such as Comcast (NASDAQ:CMCSA), Time Warner Cable (NYSE:TWC), AT&T (NYSE:T), and Verizon (NYSE:VZ). This is a fierce battle investors must watch as the future of data distribution unfolds.
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