A new report says Google is the most profitable company in the United States and is poised to spend $9 billion on its Google Fiber project, which it’s building to expand internet service in rural areas.
The company said Thursday that it plans to spend at least $6 billion on the project and will pay about $1 billion to customers.
Google Fiber, the first fiber-optic cable service to reach millions of homes, was officially launched by Google in November.
But the company has been struggling with slow broadband speeds and complaints about slow speeds in its cities.
Google said in its latest quarterly earnings report that the company would be spending $2.4 billion on Google Fiber in the fourth quarter, a 3.3% increase from the same period last year.
It said it was spending $3.1 billion in the first quarter on its other Fiber projects.
The first Fiber-optics project, called Gigabit Lte, is expected to start providing internet service to the Kansas City area in 2019.
The project is a partnership between AT&T and Google.
Google and AT&S have been testing the first Google Fiber service in Kansas City for about two years.
Google has been looking to expand its Fiber service to more areas, including Los Angeles, San Francisco and Chicago.
The Google Fiber plan is in line with a strategy Google has pursued in recent years.
In 2018, Google said it planned to spend as much as $8 billion on new Fiber projects and add as many as 10,000 homes to its network.
It also said it would expand its fiber-to-the-home service, which has become popular in cities like San Francisco.
Google CEO Sundar Pichai, right, speaks at the Google Fiber conference in San Francisco, Calif., Thursday, Aug. 6, 2019.
Google Chief Executive Sundar Prasad, left, and Chairman of Google Fiber Eric Schmidt, center, stand with executives of Google, Alphabet and Verizon during a news conference to announce Google Fiber at the company’s headquarters in Mountain View, Calif.
Google is planning to invest an additional $3 billion in Fiber, Google Fiber Chairman Eric Schmidt said in an earnings call Thursday.
“We have a lot of fiber and we have a number of new fiber sites,” Schmidt said.
“So there is a lot to be done and there is work to be completed, but we are making good progress.”
Google is currently investing $2 billion in its fiber network in Austin, Texas, and plans to invest another $3 million in a second, smaller network in the city of Kansas City.
Google announced the new network plans Thursday.
Google told analysts in a conference call Thursday that Fiber was not an expensive investment and that it planned on spending $1.5 billion on a second fiber network that it is building in San Antonio, Texas.
Google plans to install about 100,000 fiber connections around the country, which could include Kansas City and Austin.
The Fiber plan will require Google to upgrade the technology used in the company, Google CEO Eric Schmidt told analysts.
The cost of replacing older technology that uses copper cables is also increasing, Google told investors Thursday.
A spokesman for AT&Ts told The Washington Times that it has no plans to expand Fiber to other cities.
AT&ts said it is not planning to build new networks, and said it has been working with Google on a “fiber-to the home” technology.
AT &ts, which owns the cable TV network, DirecTV and Time Warner Cable, said in a statement that it was not aware of any plans to build fiber networks in Kansas.
AT has invested in fiber since at least 2010, and it is investing $1 trillion over the next decade in building fiber-connected networks across the country.
AT is the third largest telecommunications company in America.
It has invested heavily in wireless in recent decades, and in wireless, AT has become a leading player.
AT said it had $4.7 billion in new wireless spectrum from the federal government and the Federal Communications Commission that it would use to build a network of fiber optic cable.
AT and Google are working together on a project called Project Fi, which is designed to make it easier for consumers to buy and rent Wi-Fi hotspots.