Delays hit Google's 1-Gig test in Kansas City

Google's (Nasdaq: GOOG) test of a 1 Gbps broadband network in Kansas City has been delayed by a dispute involving where the company may be allowed to hang fiber on local utility poles.

"We still don't have an approval of the agreement," David Mehlhaff, a spokesman for the Kansas City Board of Public Utilities, told The Kansas City Star. While Google had hoped to sign its first customers for the 1 Gbps network by the end of 2011, the construction delay has prevented the Internet giant from marketing its lightning fast service. It also hasn't said how it will price its high-speed offering once its network is constructed.

The delay is good news for incumbent Kansas City broadband providers Time Warner Cable (NYSE: TWC) and SureWest Communications. It's not clear when the companies will face competition for high-speed Internet customers from Google.

For more:
- The Kansas City Star has this story

Related articles:
Google exec on 1 gig network: This is not charity - we expect to make money on it
Broadband resistant Kansas City could provide challenge for Google
Google more likely to partner than compete with cable operators
SureWest rolls BigBand switched digital video gear in Kansas City