AT&T drops fiber prices to Google Fiber levels

AT&T is dropping the price of its fiber Internet by 40 percent, making it more in line with Google Fiber prices in other cities.

For those who access AT&T's GigaPower fiber, prices begin at $70, and customers who purchase fiber and television service will pay at least $120. Google Fiber charges $70 for gigabit Internet and $130 for television and Internet service in Kansas City and Austin.

While Google Fiber is yet to be available, it is hard to ignore the impact it is having on the local fiber race. Since Google Fiber announced it was exploring a Nashville expansion, AT&T and Comcast announced they would deploy fiber in Nashville as well.

In May, AT&T originally set its GigaPower prices at $120, if customers were willing to share their data, and $149, if not. Comcast has said its Gigabit Pro will be priced at $299 a month, with a promotional rate of $159, still more than double Google Fiber's Internet rates. Google Fiber has not released prices for the Nashville market, but began fiber construction in May.

AT&T said its prices are similar to those offered in other markets and that as the fiber network grows, faster connection and more affordable pricing becomes possible.

"As we’ve expanded the AT&T GigaPower network in Nashville, we’re able to deliver more customers faster speeds for less," said AT&T spokeswoman Cathy Lewandowski.

AT&T’s fiber is available in select apartment, condo buildings and homes in Clarksville, Franklin, Lebanon, Murfreesboro, Smyrna and Nashville. The company has not shared how many homes will be able to tap into its fiber network or have signed up.

AT&T customers with 1 gigabit per second speeds will see their bill drop to the new, lower rates, and those with 100 megabits per second will see their speeds automatically increase by Oct. 15, according to the company.

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Now that pricing is likely comparable with Google, AT&T could gain customers who might have otherwise decided to wait for more affordable service. But others might hold out for Google, which has yet to attract the poor customer service reputations garnered by Comcast and AT&T. Both companies were included in Ranker.com's top ten worst companies for customer service and 24-7 Wall St. included both in its recent hall of shame.

Scores of Nashville residents are wearing their gray Google Fiber T-shirts, offering free advertising for the company. It's a marketing coup that would be difficult to imagine the existing providers pulling off, given their perception baggage, and it indicates the goodwill Google has already established locally. AT&T and Comcast have beaten Google Fiber to the installation but they may not have gained the customers' attention in the long run.

Reach Jamie McGee at 615-259-8071 and on Twitter @JamieMcGee_.