Time Warner Cable Inc (NYSE:TWC) will invest $25 million in a 1Gbps fiber broadband network that will grace some of its premises in New York. This was confirmed after the company made the announcement on Tuesday.
This new fiber network will span through Brooklyn, and even reach out to some parts of Manhattan. The new network is actually part of a franchise agreement between New York City and Time Warner Cable Inc (NYSE:TWC). The franchise agreement, which was reached upon last year, dictated that Time Warner would extend its fiber network to areas that did not have connectivity.
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Although the company has not yet availed insightful details of the fiber network online, company press releases reveal that this new service will offer speeds of up to 1gigabit per second. Through this new service, Time Warner Cable Inc (NYSE:TWC) will be able to serve technology companies, among other companies that require high-end internet services.
One particular place that seems to be getting all the action is Brooklyn’s Navy yard. The Navy yard is already enjoying some benefits of the high speed internet. In addition to that, Times Warner is constructing a second Time Warner learning lab in the area. The learning lab is part of a program that enhances computer literacy through free access to computers and fast internet.
Warner’s announcement comes after Google Inc (NASDAQ:GOOG) pushed forward with its fiber network construction in Kansas City, Kansas and Kansas City, Missouri. Google’s fiber network was actually launched last month. The technology giant priced its new service at $70 a month for an all inclusive package; that is 1 terabyte of data storage and 1Gbps uploads and downloads.
Unlike Time Warner Cable Inc (NYSE:TWC) which is focused on the corporate market, Google’s Inc (NASDAQ:GOOG) product has been directed towards the consumer market and business users. As of the moment, Time Warner Cable Inc (NYSE:TWC) has not released any details about the pricing of its new product.
Speculators are boiling with opinions regarding Time Warner’s expected pricing. Many are curious to see how the whole situation will play out especially so after considering the competitive environment in which the tech big wig operates in.
Interestingly, Time Warner’s plans to enhance the capabilities and reach of its network are encompassed in a bigger technology initiative, undertaken by Michael Bloomberg, the New York City Mayor. In addition to Warner’s improved service, New York has also arrived at different agreements with AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ) and Cablevision Systems. All these agreements are geared towards improving broadband services through Wi-Fi and fiber.