Google Fiber came with a frugal option when it first arrived. All you had to do just pay a one-time construction fee and you could get free 5Mbps internet service. However, this choice seems to be going away in at least one city as Google is quietly dropping that free tier for new subscribers in Kansas City, its first fiber area. Rather, it has replaced it with Fiber 100, a faster option that costs $50 per month without any construction fee.
The company hasn’t explained the exact reason for the move. However, it seems that Fiber, Alphabet’s most expensive unit is facing more pressure to switch into a durable, competitive cable and broadband business, which means cutting real margins. Also, there is a new pricing model which is offering no wiring up houses for free, which could be helpful for Fiber to get better margins.
The modified pricing could also be a way to attract more subscribers. It’s still not sure how many subscribers Fiber has. However, by pulling of the free tier, Fiber will also stop charging a substantial installation fee that may be the reason to keep the subscribers away from the service. In the other Fiber markets such as Austin, Provo, and Utah, the free option is still available, requiring $300 installation fee and nothing thereafter.
With this new plan, you don’t have to pay any installation charge. This may also help you become more urbanites. What if you are living in an apartment complex that may be unwilling at installation fees? Also, the new tier is pretty fast with its 100Mbps download and uploads speeds. Also, its rivals like Comcast, Time Warner Cable are offering the same.
Fiber users in Kansas City can keep their free option until May 19. Also, they can get the company’s $70 per month offer for its super fast ‘gigabit’ internet, or the $130 per month option that includes TV service.