Another indicator of booming Sunbelt cities: both Google and AT&T will soon be putting together high-speed Internet service in Austin, Texas.

Google said Tuesday it plans to bring its ultra high-speed Internet and television service to Austin, Texas, next year, prompting AT&T to reveal its own plans to follow suit — if it gets the same terms from local authorities.

AT&T appeared to be making a political point to highlight the heavy regulations that encumber traditional phone companies, analysts said.

Google promised to begin connecting homes in Austin by the middle of 2014 with a 1-gigabit-per-second Internet service, roughly 13 times faster than the speediest service AT&T had previously committed to offering and about three times faster than the zippiest available from Verizon Communications…

While James said he did not know what the terms of Google’s Austin deal were, he pointed out that Google received various benefits in Kansas City, including preferential right-of-way access, access to data centers, and reduced pole access rates.

The news reports I’ve seen have tended to emphasize the Internet speed that would be possible with these changes and how this might change how we use the Internet. But, I think it is also interesting to consider “why Austin?” Austin is well-known these days for its population growth, its ability to attract high-tech and educated workers and companies (related to the presence of UT-Austin), and its cultural scene, complete with SXSW. In other words, this is a “cool” middle-America city, exactly the kind of place Google might want to expand this product.

I hope we will hear more about the deals Austin might make with Google to help this project move forward. Just how much should Austin give up? I suspect residents would be more in favor of these kinds of deals or tax breaks when it involves Internet services (it is infrastructure after all) versus tax breaks for big box stores or corporate headquarters…

The next logical question: after starting in Kansas City and then moving on to Austin, what city/metropolitan area is up next for Google’s high-speed service?