Google's prices are based on known costs to install and maintain over X period of time plus the fact that an entire neighborhood of at least 50-100 people have to sign up.

FiOS is offered to any joe if you're in range, so the costs are such that it doesn't take an entire street to sign up for the costs to be low, they just aren't going to be and they will assume very few will sign up thus the price is higher.

Competition will help, but Googles prices are all about knowing how much money they are going to be getting to start with.

Internet bandwidth that our ISPs are paying to level 1 guys is a joke. We're getting so over charged so bad that it's pretty much criminal activity. They amplify it by capping users on top of that and then charge absurd over charge fees too.

I can't wait until this launches nation wide and current ISPs and Google both start to undercut each other. Then we might only end up paying 20x the cost of the bandwidth instead of 100x the cost.

A very small project in middle Europe now delivers 10gbps up and down to certain households via FTTB.
It's only field research as of right now, but the nationwide infrastructure is about to be built currently as well, will be 2015 when it's available to most of the people.
Currently everyone has to live with 100mbps for 40 bucks a month or LTE with traffic limits.