Austin, Texas will become a Google Fiber city, Google announced today. Following Google's move, AT&T also announced that it will build a 1 gigabit fiber network in the city. Two years ago Google brought Google Fiber to Kansas City to show what's possible with super fast Internet access, and since November has been connecting homes there to gigabit Internet that's 100 times faster than today's average broadband performance. Now Google's goal is to start connecting homes in Austin by mid-2014.

Google's Customers there will have a similar choice of products as our customers in Kansas City: Gigabit Internet or Gigabit Internet plus our Google Fiber TV service with nearly 200 HD TV channels. Google did not disclose pricing details, but expects them to be roughly similar to Kansas City, where gigabyte-speed service is available for a monthly fee of $70.

Also, as in Kansas City, Google will offer its customers a free Internet connection at 5 mbps for 7 years, provided they pay a one-time construction fee. Google is also planning to connect many public institutions as we build in Austin schools, hospitals, community centers, etc. - at a gigabit for no charge.

Google's expansion into Web access will compete with cable and telecommunications providers such as AT&T Inc. and Time Warner Cable.

Following Google's announcement, AT&T said it?s preparing to build a rival fiber network in Austin capable of delivering speeds similar to Google's planned service. Time Warner Cable said it welcomes the competition and has a network across central Texas.

AT&T's expanded fiber plans in Austin anticipate it will be granted the same terms and conditions as Google on issues such as geographic scope of offerings, rights of way, permitting, state licenses and any investment incentives.