Telcos, cable and municipalities get aggressive with 1 Gig pricing

Sean Buckley, FierceTelecom It's hard not to see how Google Fiber's (NASDAQ: GOOG) fiber-to-the-premises (FTTP) initiative and its $70 a month pricing construct is forcing other traditional telcos, cable operators and municipalities to react with similar offerings.

In our new feature Gigabit Wars: The best prices for 1 Gbps service from ILECs, MSOs and municipal providers, we look at how various service providers are positioning their fiber-based broadband services in the market. 

While other providers could emerge, the dominant players in the 1 Gbps fiber race are really the traditional ILECs, cable operators and savvy communities building their own FTTP-based networks.

As you'll see in the feature, pricing amongst these three segments varies widely.

The two largest telcos AT&T (NYSE: T) and CenturyLink (NYSE: CTL) have launched what are arguably ambitious deployment plans to bring the service to multiple cities over the next few years.

While its 1 Gbps service is only available in Austin, AT&T has followed Google Fiber's construct by serving up a $70 a month service there. But it has yet to reveal pricing for the other markets where it announced it would bring service. On a slightly higher scale, CenturyLink customers in Omaha and Las Vegas have the option of purchasing a standalone data service for $150 or $80 if they subscribe to a triple-play bundle.   

One of the telcos that's not part of the 1 Gbps trend is Verizon (NYSE: VZ). While the service provider has conducted 1 Gbps and even 10 Gbps trials with some select customers, it has yet to jump into the 1 Gbps game. Instead, it has made all of its FiOS speed tiers from 15 to 500 Mbps symmetrical for both its residential and small business customers. 

Meanwhile, a host of smaller telcos and municipalities are also being aggressive with 1 Gbps pricing. Cincinnati Bell and Comporium have priced their service at around $90 a month, while municipal provider is offering service for $70 a month. But as we note in the feature, Vermontel offers the cheapest service at $35 a month in select areas.

Take a look at our latest FierceTelecom feature here.--Sean


Like this story? Subscribe to FierceTelecom!

The Telecom industry is an ever-changing world where big ideas come along daily. Our subscribers rely on FierceTelecom as their must-read source for the latest news, analysis and data on the intersection of telecom and media. Sign up today to get telecom news and updates delivered to your inbox and read on the go.