AT&T Announces Gigabit Fiber Service Plans in Response to Google

By Evan Niu, CFA – Apr 9, 2013 at 3:54PM

NYSE: T

AT&T

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AT&T responds to Google's Fiber expansion with a gigabit fiber service of its own in Austin, Texas.

Hours after Google (GOOGL -2.93%) confirmed that it was bringing its high-speed Google Fiber Internet service to Austin, Texas, incumbent provider AT&T (T -1.22%) announced its own plans to build a gigabit fiber network in the Texas capital.

The new fiber optic network will be part of AT&T's previously announced Project VIP expansion in the city, the company said today.

AT&T said it expects to receive the same terms and conditions as Google with regards to geographic scope and state licenses, among other incentives. The company does not expect the expansion to affect AT&T's previously provided guidance on 2013 capital expenditures.

The company did not detail any specific time frame for its fiber optic network, while Google is targeting mid-2014.

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Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.