By Jessica Guynn, Los Angeles Times –
SAN FRANCISCO — Google Inc. has been given the green light to offer video services to residents of Kansas City, Mo., which could put the Internet search giant into competition with cable and satellite companies.
The Missouri Public Service Commission granted Google Fiber Missouri’s request to build a video service network along public rights of way.
That means Google could offer a pay-television service similar to cable television along with the high-speed Internet service it plans for later this year.
Google is negotiating to license channels for the service.
Google last month sought permission to offer video service in Kansas City, Mo., and Kansas City, Kan., in addition to the high-speed Internet service. The request is still pending with the Kansas Corporation Commission. State regulators have 30 days to consider the request.
Google has begun laying fiber-optic cables in the two cities. The service that would provide Internet service at competitive prices is expected to be more than 100 times as fast as what is currently available.
Google, which generated nearly $40 billion last year from selling online ads, has stepped up its efforts to push into the TV ad market. If it sells video services to residents, it could gain the rights to sell ads as well.
