12 Comments

Summary:

As Google Fiber heads to Austin, Texas, a quick look at the pricing reveals that GooFi may be harder to sell to happy AT&T customers, but is way cheaper than Time Warner Cable.

google_fiber_truck

The news that Google Fiber is coming to Austin, Texas has me all aflutter. But I’m the type of broadband-lovin’ fool who wants a gig for the sake of having a gig. What about those practical people out there wondering why they might sign up?

Even if my earlier arguments about innovation don’t convince you that Google Fiber could help change the broadband landscape, then here’s a chart that could help. For the practical people out there, just check out the pricing of Google Fiber today versus the pricing of the incumbent ISPs in Austin.

How much broadband costs in Austin.

Service provider Cost
Google Fiber (gigabit broadband only) $70 monthly
Google Fiber (gigabit + TV) $120 monthly
Google Fiber (5 Mbps) $300 install fee and $0 monthly
AT&T U-verse (24/6 Mbps only) $55 with $200 install fee
AT&T U-verse (24/6 + TV) $99 monthly with 1-year contract
AT&T U-verse (6Mbps) $20 with $200 install fee
Time Warner Cable (50/5 Mbps package) $79 monthly plus $20 install fee
Time Warner Cable (50/5 Mbps + TV) $172 monthly with a $90 install fee
Time Warner Lite (3/1 Mbps) $34 a month

Comparing pricing across telecommunications services is tough, so I assembled the highest speed internet package, the TV package that offered digital cable but none of the extra premium channels and a DVR package that provided whole home DVR as Google TV does. Time Warner Cable has a box and modem fee associated with its service. Google TV doesn’t have an equipment fee but it does have a different channel line up than the incumbents.

Looking at this, Google Fiber would be more expensive than AT&T’s services until people started using more devices and requiring more capacity. However, AT&T has a cap of 250 GB per month, and despite what the salesman told me over the phone, I’m pretty sure that I do need a 24 Mbps connection today to satisfy my family members. Still, on the eve of the Google Fiber announcement I’m tempted to switch over to AT&T while I wait for the build out.

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  1. Since I don’t have TWC (DirecTV for the sports packages) my broadband costs are 90+ dollars every month from Time Warner for 50/5 Mbps. I would love Google to expand into Round Rock soon after (where I am located).

  2. Richard Bennett Monday, April 8, 2013

    I suspect TV programming costs will make up the majority of the bill for most people, as they typically do today. Unless Google is selling TV below cost, you won’t save money on cable with a comparable channel lineup since these costs are set by the content providers. Still, fiber is nice to have.

  3. Those choices make Austin look quite good compared to the rest of the US, which is even sadder.

  4. Uverse maxes out at 24/3

  5. Stacey, take “a quick look” at the price PER MEGABIT and you’ll see that Google Fiber is cheaper than dirt cheap. And Google expects to come close to breaking even supplying the service in the short term. And one thing about GF@5Mbps is that the $300 install fee covers the service for 7 years (or 8?) so one can regard that the service basically costs no more than $3.571/mo.

    1. Stacey Higginbotham elfonblog Tuesday, April 9, 2013

      Oh I am on board the moment I can get Google Fiber (if I get it.) But there are many out there who won’t do a price per megabit comparison.

    2. I think the google fiber for $300 does NOT include tv though, right?

  6. You missed the comps on Grande, which has been kicking both AT&T and UVerse’s ass for a while now I think…

    1. Sorry, Time Warner and U-Verse. same same. :)

  7. That $20/mo is a great price on the 6 Mbps service from AT&T. I’m paying $38/mo for their 3 Mbps service here in Indianapolis.

  8. That is a good article. I live in Greensboro, NC where TWC has a oligopoly. I pay $73 for 30 meg per sec. If Google competed here it would be better. I dont really consider AT&T competition since they dont offer Uverse in my neighborhood.

  9. Funny. The DISCOUNTED rate in Wilmington, NC for Time Warner DOCSIS 20×5? $82.00 per month. They hold the monopoly. Since these companies provide phone service, considered a utility in N.C., because it is over “cable tv”, WHY doesn’t the government step in and regulate cable providers like they do (did) telcom industries like Bellsouth? Time Warner is doing the exact same thing Bellsouth was doing. Holding customers hostage and not allowing c-lects. I am in the middle of the city, and cannot get anything more than Time Warner’s jittery, overpriced servicer. Absurd!

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