Google Fiber ups the broadband ante in Raytown, Mo.

Google Fiber (Nasdaq: GOOG) announced Raytown, Mo. as the next destination for its 1 Gbps fiber service, challenging AT&T (NYSE: T) and Comcast (Nasdaq: CMCSA). The city aldermen in Raytown voted unanimously in favor of the move.

As seen in other markets where AT&T and Comcast reside, Google's 1 Gbps offering will far surpass the 10-25 Mbps and up to 100 Mbps speeds offered by the incumbent telco and cable operator.

Following recent announcements in Shawnee, Kan., and Grandview and Gladstone, Mo., Raytown is the tenth area in the Kansas City area announced to date. Google also plans to bring the service to other areas, including Austin, Texas and Provo, Utah.

Similar to other cities where it has said it would offer service, Google Fiber could not provide a specific timeline as to when it would actually begin delivering service in Raytown.

"It will be awhile before we can hook up Raytown residents--we need to plan and build our network there first," said Rachel Hack, community manager for Google Fiber on the company's blog. "When we have more info, we'll be sure to post it here."

Despite the potential that Google Fiber brings to areas such as Raytown and larger cities like Austin, not everyone is convinced that Google Fiber will have a large impact outside regional markets.

As reported by Home Media Magazine, Dexter Thillien, senior analyst for multiplay at IHS Screen Digest, said that Google Fiber's role will be that of a smaller player in the overall U.S. broadband market due to the high cost of rolling out a nationwide FTTP network.

Thillien added that Google will be challenged by large incumbents. "AT&T and Verizon (NYSE: VZ) have spent many billions of dollars establishing fiber networks in larger population centers, something Google is unlikely to be able to match."

For more:
- see this post
- here's FierceCable's take

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