Google Fiber's (Nasdaq: GOOG) emerging presence in Provo, Utah, through its purchase of the iProvo network is once again inciting local cable operator Comcast (Nasdaq: CMCSA) to respond with a competitively priced 250/50 Mbps tier for $70 a month, according to Broadband DSL Reports.
This latest offering follows an earlier move by the cable MSO to propose a $120 monthly bundle of video, voice and a 105 Mbps Internet service for its Provo subscribers.
Jesse Harris, a writer for the Free Utopia blog, said that a Comcast sales rep told him the cable MSO would offer a 250/50 Mbps tier only in the Provo market.
"I spoke with one of their sales guys who confirmed that Comcast will be offering a package of 250Mbps/50Mbps for $70 starting in September, but only in Provo," wrote Harris in a blog post. "This is in direct response to Google Fiber coming to town and will include a new modem with a built-in 802.11ac router to take advantage of the speed bump."
Harris added that it is "unknown if this speed tier will land in any other cities in the future."
Charlie Douglas, a spokesman for Comcast, told FierceTelecom that they were not announcing any new formal speed tier plans for Provo yet.
He added that it's "not uncommon for us to try different speed tiers in different markets."
Although Comcast isn't offering anywhere near the same speed that Google Fiber plans to offer, it's clear that it wants to get a jump ahead of the Internet giant which said when it announced it would purchase the iProvo network that it would have the service up and running by the end of this year.
Earlier this month, Google Fiber revealed its pricing plans for its 1 Gbps and 5/1 Mbps service tiers. After paying a $30 construction fee, eligible customers can get a free 5/1 Mbps tier for seven years. It will also offer a standalone 1 Gbps data connection will cost $70 a month, while a 1 Gbps Internet and TV bundle will be priced at $120 a month.
Special report: Google Fiber, AT&T, CenturyLink drive the 1 Gbps game
Google Fiber to buy iProvo network, upgrade Utah city to 1 Gbps
Report: Google Fiber threat prompts Comcast to slash prices in Provo
Google closes deal to acquire iProvo
Google's iProvo purchase draws fire from Utah-based XMission
Updated the article on August 29 with a comment from a Comcast spokesperson on bringing a higher speed broadband tier to Provo, Utah.