Internet search giant Google Inc. GOOGL has announced the expansion of its high-speed Internet service through its fiber-optic network to San Antonio, TX. Google will start building the infrastructure required to connect San Antonio to the network in the coming months.
San Antonio is the biggest of the cities that have been connected to the service so far. For it to be available, Google will have to install about 4,000 miles of fiber optic cable in the city.
Google launched its high speed Internet service named Google Fiber in Kansas City, MO in Sep 2012. It delivers Internet speeds of up to 1 gigabit per second. The ultra-high speed service already has a foothold in Kansas City, TX, Austin, TX and Provo, UT. It has also proposed to offer the service in Salt Lake City as well as 18 Southeastern cities in Georgia, Tennessee and North Carolina.
With the expansion to San Antonio, the count now stands at 24 U.S. cities spread through seven states.
Google already faces competition in San Antonio where both Time Warner TWX and AT&T T offer Internet service. According to the Time Warner page for the San Antonio area, the company provides a $65 per month Internet-only package with speeds up to 300 Mbps.
But Google offers speeds up to 1,000 Mbps (1 gigabit per second) for $70 a month. So Google has an advantage in this regard. This can open another growth avenue outside search for the company as slow Internet speed has been limiting the consumption of video and other heavy data on the Internet. It can therefore spur YouTube consumption and the consumption of other Google services.
Google carries a Zacks Rank #2 (Buy). Another stock worth considering in the technology sector is LendingClub Corporation LC, sporting a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment