AT&T Plays Offense in Texas

Earlier this year, Google  (NASDAQ: GOOGL  ) added Austin, Texas, to its list of Google Fiber cities, and the gigabit Internet service is slated for a mid-2014 launch. Hours after the announcement, AT&T  (NYSE: T  )  confirmed its intentions to follow suit if it could procure similar incentives. Ma Bell has now done that and is launching its gigabit service in December.

AT&T's new GigaPower service will beat Google Fiber to market, but pricing remains the biggest unknown. Google also hasn't announced Fiber pricing in the Live Music Capital of the World, but Big G prices very aggressively in Kansas City, so chances are it will do likewise in Austin. AT&T has now had to spend on capital expenditures yet has no pricing power if Google plans to undercut.

In other markets, Verizon  (NYSE: VZ  ) has shown a disregard for Google's threat, since it launched a new service tier in its FiOS network that offered half the speed for four times the cost. The key difference is that Google Fiber is not available in those markets, so Verizon doesn't have to worry quite yet.

In in this segment from today's episode of Tech Teardown, Erin Kennedy discusses AT&T's new network with Evan Niu, CFA.

Be a smarter Google investor
If someone asked you, "Why invest in Google?", could you truly answer them? To be honest, few investors could. That's because most of the company's secrets -- the ones that make savvy market-watchers rich -- often fly below the radar. If you want an edge on other Google investors, be sure to check out "5 Secrets to Google's Future" from The Motley Fool. This 100% FREE guide includes actionable advice that you can put to use right now! Just click here now for instant access!


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 03, 2013, at 11:33 AM, jaybird43 wrote:

    Google may be "it" in the tech world, but as an investor who wants growth and INCOME, it's nowhere. No dividend, means no interest for us income investors. It is second position in a index fund I own and that is where GOOG will stay. T pays a 5%plus and that's the play. Score: GOOG 0, T, 5.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2665601, ~/Articles/ArticleHandler.aspx, 8/28/2014 11:35:00 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement