Walk, a former Google executive, has a theory on why Google is rolling this product out.

People ask me what's Google's metagame with Fiber. My guess is the following: Use Fiber to reset consumer expectations of what a connected home should feel like. Continue to drive down the cost of deployment and sign up customers for a very sticky (high LTV) service by being first to market. If existing ISPs follow - or even beat Google in some many markets - Google still wins. Why? Because as I found out personally, when the Internet is this fast you do one more search per session, watch one more video per session, send one more email per session. A connected population benefits Google. Period.

Google singlehandedly is making the Internet faster, better, and cheaper.

Why is no one else incentivized to join them in doing the same???

http://pandodaily.com/2013/04/22/the-google-fiber-competitive-plan-for-everyone-else/

So everyone else is being forced to upgrade to compete? Good for consumers.