Chattanooga's claim to fame as the "Gig City" for its blazing-fast, 1-gigabit-per-second Internet speed may not be special for much longer, as other Internet service providers step up their games - and their speeds.
Comcast on Monday announced it will "aggressively market" its new 2-gigabit-per-second Internet service in Chattanooga, which the company first rolled out in April in Atlanta.
"We are excited that the 'Gig City' will now be known as the '2 Gig City,'" Comcast spokeswoman Sara Jo Walker said.
"This isn't something that we're just doing in Chattanooga," she added, explaining that Comcast will offer 2 gigabit Internet in other Tennessee cities, such as Knoxville and Nashville, and in other states including Florida and California.
Industry analyst Jeff Kagan said boosting speeds is a trend among Internet service providers. Google and AT&T are the most aggressive, said Kagan, who's based in Marietta, Ga.
"Every year that goes by, it's faster," he said. "When it's introduced, it's not really needed, yet. But it will be, soon."
Comcast is expanding services in Chattanooga.Another reason for faster Internet speeds, he said, is that more people watch TV and videos over the Internet, while cable TV is losing viewers. High-speed Internet allows movies to be downloaded in seconds instead of minutes or hours.
"Comcast is more in the Internet business today than they are in TV," Kagan said. "Now they make their profits on the Internet, so they've got to remain desirable."
Internet service providers can't just flip a switch at headquarters to turn on high-speed Internet, he said, they have to install fiber-optic cable.
"This is the new cost of doing business," Kagan said.
Comcast's new 2-gigabit-per-second Internet, called Gigabit Pro, will be tested in Chattanooga and other Southern markets for $159 a month, or just over half the usual $299 price.
But on its web site, Comcast said there is also a $500 activation fee and a $500 installation fee for the new service, which also requires a 2-year contract. While Walker said Comcast is offering a lower introductory rate, the standard monthly fee is $299 for Comcast's Gigabit Pro.
By comparison, EPB charges $69.95 for its Gigabit speed package.
Comcast also is boosting the speed of its popular Blast! tier - its most popular service tier - from 50 megabits per second to 75 megabits per second in Chattanooga and other Southern cities at no extra charge.
Gigabit Pro will be available only to customers within one-third of a mile of Comcast's fiber network.
EPB officials said they've got the advantage there, since the public utility's network covers all of Chattanooga.
"Our fiber-optic service is ubiquitous," said J.Ed. Marston, EPB's vice president of marketing.
While EPB doesn't offer discounts like Comcast and other private Internet providers, it doesn't require a contract or have "hidden fees," Marston said. For example, EPB doesn't charge for installation.
"We have a consistent, understandable price structure," he said. "Our research suggests that over a two-year period we are comparable [to], if not cheaper than, our competitors."
EPB has 73,902 residential and business customers for its Internet service, Marston said, 5,828 of whom buy 1-gigabit-per-second Internet. Walker declined to say how many customers Comcast has in Chattanooga.
Chattanooga became the first city in the Western Hemisphere to gain citywide access to gigabit-per-second service when EPB rolled out its Gig service nearly five years ago. EPB still greets motorists on interstate highways 75 and 24 with billboards welcoming them to "Gig City."
Even though high-speed Internet is extending its reach, Kagan said, it's still relatively rare for cities to have more than one provider offering the service.
Contact staff writer Tim Omarzu at tomarzu@timesfreepress.com or www.facebook.com/tim.omarzu or twitter.com/TimOmarzu or 423-757-6651.