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Google Fiber utility trucks in the company's first market, Kansas City. The speedy rabbit references its connection speed -- not Google's decision-making timetable.

(Mike Rogoway/The Oregonian)

Google Fiber's Internet service is really, really fast.

Google Fiber's decision-making process? Not so much.

The company said Thursday that it will delay a verdict on whether it will serve Portland, five suburbs and eight other metro areas in other parts of the country until "early next year."

That extends a wait that began in February when Google first announced it was contemplating offering fiber-optic service in the metro area.

At that time, Google said it planned to make a decision by the end of 2014. But the company rarely met its target dates in two prior markets, Kansas City and Austin.

"We've been working closely with cities around the U.S. to figure out how we could bring them Google Fiber, and we're grateful for their vision, commitment, and plain old hard work," Google said in a written statement. "While we were hoping to have an update for cities before the holidays, we have a bit more work to wrap up; we'll be back in touch sometime early next year."

The delay doesn't diminish the city's optimism it will ultimately be among those Google selects, said Dana Haynes, spokesman for Portland Mayor Charlie Hales.

"One of the reasons I'm optimistic is they said on other occasions that the regional response we were getting from Portland and the suburbs was really good," Haynes said.

In addition to Portland, Google is contemplating fiber service in Gresham, Tigard, Lake Oswego, Beaverton and Hillsboro, along with several other metro areas across the country. Portland approved a franchise for Google in June.

Portland, which has been courting competitive Internet and cable TV service since the 1990s, granted Google Fiber a franchise in June.

The sheer scale of the project could be complicating Google's planning efforts. Google's fiber network in Kansas City runs 7,000 miles, and it's contemplating expansion in eight other metro areas across the country in addition to Portland.

A project on that scale would cost billions of dollars -- a mighty sum even for Google, which reported $13 billion in profits last year.

It may be the company needs additional time to figure out how to undertake such a mammoth endeavor in many markets at once and how to navigate an array of rules and regulations in each local jurisdiction.

Google Fiber offers Internet connections at 1 gigabit per second -- 1,000 megabits per second, many times faster than standard broadband connections today. Though few homes can make full use of those speeds today, they could future-proof Portland for new generations of ultra-high-def video and emerging online services that could pull several members of a household online simultaneously.

Google Fiber isn't a lot cheaper than its rivals. The company charges $70 a month for its gigabit service in other markets, or $120 to $130 monthly for a bundle of Internet service and cable TV. That's in line with Comcast's rates, though Google's speeds are 20 times faster than Comcast's newly upgraded standard connections.

(Google also offers seven years of free Internet service at 5 megabits per second to households that pay a one-time, $300 "construction fee.")

The company has already had a profound effect on the Portland market. Since Google Fiber announced in February that it was contemplating service here, CenturyLink has begun stringing high-capacity fiber-optic cables to select Portland neighborhoods and could begin cable TV franchise in the city as early as next year.

Comcast has doubled the speeds of its Internet service, and Frontier has begun offering gigabit connections in Beaverton.

On Thursday, Haynes said Portland shares state officials' concern that an unusual Oregon tax on telecommunications companies could be affecting decision-making at Google and other telecom businesses contemplating expansion in the state.

At a legislative hearing in Salem last week, officials warned that taxes on the value of a company's brand could block $1 billion in prospective investment in the state and could deter competitive telecom services.

"I do think it's at issue. I can't say that's the only issue," said Vince Porter, economic policy adviser to Gov. John Kitzhaber. "I think it's an issue for any company right now."

Oregon lawmakers say they plan to take up the tax issue at the upcoming legislative session, which begins next month.

Update: This article has been updated with additional comment from the state and city.

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