If Cities Want Fiber Then Do More, According To Google Inc (GOOGL) Executive

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Access to Google Inc (NASDAQ:GOOGL)’s high-speed Internet service, Google Fiber, has been limited to only a few cities. The company has previously not bothered to explain much about the slow pace of rolling out the super-fast Internet service until this week, at a panel in Washington, D.C. According to a Google executive, some cities are doing a disservice to themselves because of their bloated permitting process, which is keeping Google away.

Cities that want to enjoy better broadband services, such as Google Fiber, should work on issues such as, getting rid of fax machines, touching up their maps, and streaming the process of obtaining permits. According to Milo Medin, the VP of Google Fiber’s Access Service, they will expand into cities that make things easy for them to enter. At the same time, they will avoid cities that are making their entry into the market difficult.

Fiber availability

Google Fiber is already available in places such as Austin, Kansas City, Utah and Provo. Google Inc (NASDAQ:GOOGL) intends to roll out the super-fast Internet in location such as Atlanta, Nashville, Charlotte and towns in the Raleigh-Durham area.

The prime aspects that, Medin told the D.C. panel, have kept Google Inc (NASDAQ:GOOGL) away from some cities, are a complex permitting process and the inability to obtain accurate infrastructure information. In some other cities, owners of multi-unit buildings are not allowing Google Fiber, yet those are the areas that the company sees economies of scale.

Addressing the problem

To avoid a situation where cities will have a patchwork of different Internet speeds across the country, Dave Schaeffer, the CEO of Cogent, told the D.C. panel that policy inducement will be required to promote the broadband offering.

As Google Inc (NASDAQ:GOOGL) drags its feet in the rollout of Google Fiber Internet, competitors are moving fast to narrow its market share with matching speeds and competitive prices. AT&T Inc. (NYSE:T), for instance, announced 1 gigabit per second Internet speeds for Kansas City at the cost of $70 a month for homes and small businesses.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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