The free option, which is still available in Fiber markets Austin, Texas, and Provo, Utah, required a $300 installation fee but no monthly payments thereafter. But by scrapping the free tier, Fiber will also stop charging a substantial initiation fee that may have kept subscribers away.
Fiber hasn’t shared how many subscribers it has or what plans they choose. The pricing change could also be a way to get more subscribers onboard. And the new pricing model - no more wiring up houses essentially for free - could help Fiber get to better margins. It could signal that Fiber - the most expensive unit for parent Alphabet, besides Google - is facing more pressure to turn into a viable, competitive broadband and cable business. A rep confirmed the pricing changes, but declined to comment further. It’s unclear what Fiber’s exact motivation is here.
In its place are two new plans: A faster option, Fiber 100, that costs $50 per month with no construction fee or contract and a broader implementation of its agenda to wire economically underserved neighborhoods for free. Now Fiber is dropping that option for new subscribers in Kansas City, its first market. When Google Fiber first arrived, it came with a compelling pitch: Pay a one-time construction fee, and you get Internet access for free after that.
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