Kansas City is now the home of not one but two fiber optic service providers with Google Inc. (NASDAQ:GOOGL) being followed by AT&T Inc. (NYSE:T). The latter carrier offers not only similar services to Google Inc. (NASDAQ:GOOGL) but also competitive pricing.
Fiber optic technology basically provides consumers faster internet browsing with streaming speeds over 100 times quicker than before. Google Inc. (NASDAQ:GOOGL) started its fiber optic service in Kansas with its 1 GB speed which gave its users easier access to downloading and streaming.
With AT&T Inc.’s (NYSE:T) services in the market offering similar services like Google Inc.’s (NASDAQ:GOOGL) such as its 1 GB internet, Google Inc. (NASDAQ:GOOGL) will have a tough time maintaining market share if it doesn’t change its competitive strategy. Don’t get it wrong, the company is doing pretty well but for how long exactly?
Both the services have a few differences such as the channels AT&T Inc. (NYSE:T) offers which Google Inc. (NASDAQ:GOOGL) Fiber doesn’t. The carrier also offers phone services for an extra $30. On the other hand, Google Inc. (NASDAQ:GOOGL) Fiber lacks these services however it does offer cloud storage services. Users of Google Inc. (NASDAQ:GOOGL) Fiber can also record nearly eight shows at once compared to AT&T Inc.’s (NYSE:T) five shows. However AT&T Inc.’s (NYSE:T) GigaPower does have the advantage of allowing customers to enjoy free HBO for their initial three years.
The biggest difference yet is the $29 dollars that will help consumers exit AT&T Inc.’s (NYSE:T) Internet Preference Program. This service is applied to the company’s personal tracking system which targets ads towards customers. If a customer opts out then there will be no effect on its tracking system. Google Inc. (NASDAQ:GOOGL) Fiber doesn’t use this to track customers yet users other ways to do so such as Gmail and Google +.
AT&T Inc. (NYSE:T) CEO, Randall Stephenson stated that the investment cost is so huge and would need surefire returns, which is the reason why the company will only expand its fiber optics services to locations in which the demand is the highest.
As if AT&T Inc. (NYSE:T) wasn’t enough, Google Inc. (NASDAQ:GOOGL) Fiber also has to face Local competition such as one located in this, Chattanooga which also provides 1 GB internet although on a smaller scale. However, the main competitor for Google Inc. (NASDAQ:GOOGL) Fibers is still Time Warner Cable which tripled its speed when Fiber entered the industry without any price increases.
The question still remains whether Google Inc. (NASDAQ:GOOGL) Fiber is a good enough buy. The company has always pulled through and there is no doubt that it has enough resources to expand its service nationwide. AT&T Inc. (NYSE:T) on the other hand, has less ambition and is okay just playing safe for a while. This may be Google Inc.’s (NASDAQ:GOOGL) chance to shake things up around the world thus establish a better brand name through providing state of the art services worldwide. Google Inc. (NASDAQ:GOOGL) must also consider keeping an eye out for competitor, Time Warner Cable, so that it doesn’t end up losing more than it has at the moment.
