AT&T Plans To Compete With Google Fiber, And Google Might Be Fine With That

AT&T is now weighing whether to bring its Gigabit internet service to Nashville, one of the 21 cities the company is considering for the high-speed internet. (Sean MacEntee/Flick)

AT&T says it might bring ultra-high-speed broadband to Middle Tennessee. The telecommunications giant says it’s eyeing 21 metro areas for its so-called GigaPower service. It might seem like it’s competing with Google Fiber’s plans to expand here, yet the internet company might just welcome AT&T’s move.

The service AT&T is pitching is similar to Google Fiber’s plan. Both claim to be 100 times faster than regular service. However, observers say AT&T has a natural advantage: having existing infrastructure in Nashville and relationships with utility operators.

Technology analyst Jan Dawson said AT&T’s presence just might make Google skip over Music City.

“In some ways, it’s worth thinking about why Google is getting into the fiber business in the first place. And they always have said it was somewhat of an experiment,” said Dawson, who is based in Provo, Utah. “But one of the reasons why they wanted to do fiber was to push operators like AT&T to roll out faster and faster broadband networks, which benefits Google in the long run.”

He says it all will come down to which company can get a better deal.

“They’ll be looking for tax breaks, they’ll be looking for incentives from the city to do this. And most cities around the country would be keen to get this kind of network in their city. It brings good attention. It’s helpful for businesses. It’s a good thing to be able to point to and say ‘we’re a technologically advanced city,” Dawson said.

One scenario is that Google Fiber walks away, Dawson thinks.

“If AT&T were to say were to say, ‘we’re definitely coming to Nashville,’ Google might say, ‘you know what? Another town somewhere will benefit more from us coming in than Nashville will now because they’re already going to have one.”

Another scenario, however, is that both companies extend Gigabit service, like what’s unfolding now in Austin. This result, Dawson says, would have Google and AT&T facing off over upgrades, perks and other competitive plays to lure customers.

A Google spokeswoman wouldn’t comment on AT&T’s expansion plans, except to say the company’s has always been in favor of more people having faster internet.

Of course, the more people surfing the web at faster speeds means more revenue for Google – no matter who delivers the faster service.

While Google Fiber was looking just at Nashville’s city limits, AT&T says its service would extend outside of the city, reaching places like Franklin, Murfreesboro and Clarksville.