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Gigabites: Google Fiber Pays Up in Portland

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Gigabites: Google Fiber Pays Up in Portland

TGIF. In today's edition of Gigabites, Google Fiber finds new fees in Portland, the FTTH Council ties fiber broadband to higher property values, AT&T boasts about new community deployments and more.

Easy come, easy go. Google Fiber Inc. has been exempted from a requirement in Oregon that obliges cable companies to pay a fee amounting to 3% of revenues in support of public-access, educational and government (PEG) programming. However, in a new franchise agreement with the city of Portland, Google Fiber is now mandated to pay a 3% "digital equity support fee" instead. The deal replaces one that required Google Fiber to offer low-cost Internet service, and instead gives the city government control over a new fund that will be used to expand online access to underserved areas.
Comcast Corp. (Nasdaq: CMCSA, CMCSK) had hoped to take advantage of the same tax incentive that let Google Fiber off the hook for the Oregon PEG fee. However, lawmakers ruled last month that the tax break wasn't intended to support a premium Internet service like the Gigabit Pro tier Comcast sells for $300 per month. Comcast may rest easier now knowing that Google Fiber has been levied its own 3% tax. (See Gigabites: Ting Makes Holly Springs Sing.)

Meanwhile, Google Fiber still hasn't officially committed to bringing its gigabit Internet service to Portland, but the company won approval to build its first fiber hut in the city earlier this month and has begun to hire local employees.
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