Google Changes its Fiber Deal with Kansas City

google fiber broadband vanKansas City was the first place in the world to receive Google Fiber, the companys ambitious broadband service that aimed to accelerate the industry, but now the tech giant is revising its deal with the city, taking away the free internet access and replacing it with a subscription model.

Originally, Fiber customers in Kansas City simply had to pay a one-time installation fee of $300 (£210) to connect to the super-high speed internet network established by Google, with absolutely no fees for ongoing access or data usage.

Now, Google is updating the service in Kansas with exponentially faster speeds of up to 100 Mbps and removing the installation fee, but will instead be charging $50 a month in subscription fees. The free service will only remain in public housing, as part of a partnership with the US Department of Housing and Urban Development, and will be limited to 5 Mbps speeds.

According to letters sent out to Fiber users in Kansas City, subscribers will also have the choice of super-fast internet for $70 a month, and a bundled internet and TV service for $130 a month. Customers will have until 19 May to choose their package, which is when free access will end.

Alphabet hasnt commented on the reasons behind the price change, but it is likely that if the model attracts more customers in Kansas City, it will spread to the other cities in the US that offer Google Fiber.

Access, the Alphabet unit in charge of Fiber, is the second most expensive part of Alphabet behind Google, so is likely seeing increasing pressure to bring in revenues to match its outgoings.

Fiber has been credited with disrupting the broadband market in the US and pushing other providers to improve their offerings. Alphabet is currently in the process of a similar experiment with Project Fi, its attempt to shake up the mobile network ecosystem.