Time Warner Gears Up to Face Google
Google’s (NASDAQ:GOOG) entry into the business of providing high-speed Internet is clearly alarming established players in the market, with Time Warner Cable (NYSE:TWC) announcing plans to expand its fiber-optic lines to businesses in New York. Time Warner’s move will boost Internet speeds as much as 20 times to 1,000 megabytes per second.
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The cable company is feeling the heat after Google recently launched its new high-speed network in Kansas City, an area where the former is the main broadband provider. Time Warner will spend $25 million just this year under the project and expand fiber networks in the boroughs of Brooklyn, Manhattan, Queens, and Staten Island.
“We’re making the investment to expand into areas much more aggressively than we ever have before,” Ken Fitzpatrick, president of business services for Time Warner Cable’s East region, told Bloomberg.
Time Warner, which provides Internet connectivity to 450,000 small-business customers, saw its sales from business services rise 29 percent last quarter to $464 million. The revenue accounts for 8.6 percent of the company’s total sales.
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