TVBizwire

Report: 'Google is reinventing the business of pay TV and broadband. Cable operators everywhere should be very, very afraid.' SNL Kagan

So begins a report by Deborah Yao for the well-known and respected cable analyst SNL Kagan.

The article continues, "Frustrated with the nation's broadband providers and their usage caps, prices and globally lagging speeds, Google is taking matters into its own hands to accelerate innovation and secure its own future.

"Google Fiber is part of a grand plan to create highly connected societies, a place where 'bandwidth flows like water, where the fastest Internet in the world is available at an affordable price and [where] people can get access to basic broadband for free,' said Milo Medin, vice president of access services at Google, one of several executives who spoke at the service's July 26 launch in Kansas City. 'It's not just Internet. It's not just TV. It's Google Fiber.' "

The article contines, "Google Fiber is not your run-of-the-mill cable service," and then goes on to say, "Google only offers three plans: A broadband and TV bundle at $120 per month with a free Nexus 7 tablet and 1 terabyte of cloud storage; a 1-Gbps Internet plan for $70 a month and a terabyte of cloud storage; and free broadband at up to 5 Mbps downloading with a $300 installation fee or $25 a month for one year. There is only one channel package, not multiple tiers.

"Local content included: Google Fiber will offer content from local institutions, such as educational videos from a hospital or school. The company said the goal is to become a content-publishing platform.

"Custom equipment: Google made its own gear, boxes that are smaller and more powerful than standard equipment provided by pay TV operators.

"Google Fiber comes with a set-top box it calls a TV box, a network box or modem and a storage box or DVR. The TV box has eight tuners so viewers can record eight shows at once; it is fully integrated with online video and has a Wi-Fi access point built in so it turns every TV into a Wi-Fi router, meaning no more dead spots in the basement. The TV box also has Bluetooth, so viewers can use Bluetooth-enabled stereo headphones to watch TV without disturbing others.

"The storage box stores 2 TB of content, or up to 500 hours of HD programming. The network provides high-speed wireless connections in the home, including a firewall for data security.

"The Nexus tablet acts as a remote. Viewers can even search for shows by speaking to the device."