Speedy new rival for Verizon Fios and Google Fiber headed to 20 states

Altice USA CEO: All capital reinvested into fiber
Altice USA CEO: All capital reinvested into fiber

Verizon's Fios is about to get some major competition from the fourth largest cable operator in the U.S.

A massive network of high-speed fiber optic internet is coming to 20 states over the next five years, according to a Wednesday announcement from Altice, the cable company behind Optimum, Lightpath and Suddenlink.

"We know that the data world is exploding — it will continue to," Dexter Goei, Altice USA Chairman and CEO, told CNBC's "Squawk on the Street" on Wednesday. "We're seeing a doubling of the average speeds that we're delivering to our clients over the past year on Suddenlink."

Altice's planned 10-gigabit per second connection far outpaces Google Fiber's current 1-gigabit per second connection, as well as Verizon Fios. Altice's "future-proof" plan comes as Google has scaled back its own expansion plans for the ultra-fast internet cables.

"To just go to one gig [per second], to us, seems like a waste of time," Goei said.

Companies like AT&T have looked toward internet-streaming based services to appease cord-cutters that have fled traditional cable bundles. AT&T's new DirectTV Now give subscribers access to at least 60 channels over the web, the kind of service that works better on faster internet connections.

But Goei said that Altice's new internet push doesn't mean it's seeing declining demand on its cable business.

"People are taking the bundle," Goei said. "We welcome what our competitors are doing. We think however, we have a unique product, a unique pricing model and unique features in terms of really enhancing user productivity."

Disclosure: CNBC's parent company, Comcast, is a cable and internet service provider.