Speedier Internet Rivals Push Past Cable
Steady growth in broadband revenue has helped cable operators offset a stagnant pay-TV market in recent years. But now, the industry is resisting pressure from local governments, businesses and universities to offer ultrafast Internet service, opening the door to new competitors.
Google Inc. GOOG +1.93% and a host of smaller companies working in partnership with cities like Seattle and Urbana, Ill., are building fiber-optic networks that offer speeds of a gigabit per second. That's more than three times as fast as the maximum speeds available to residential subscribers of major cable or phone companies.
Mr. Tolva in Chicago says business services offered by cable operators are far too expensive for "the kind of growing companies that we're trying to foster." He estimates it would cost businesses about $3,500 a month for a dedicated fiber line with gigabit-speed Internet from a cable operator.
By contrast, gigabit speeds in Chattanooga, where the public utility started offering fiber Internet in 2009, cost $300 a month. Some residential gigabit services are even cheaper: Google charges $70 a month for its Kansas City service, as does Sonic.net in California.
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