Google buying $39M fiber service in Utah for $1

Apr 18, 2013 by Paul Foy
Kevin Lo, General Manager of Google Fiber, speaks after it was announced that Google will make Provo, Utah, the third city to get its high-speed Internet service via fiber-optic cables, Wednesday, April 17, 2013 in Provo. The Provo deal is the first time Google plans to acquire an existing fiber-optic system. The city of 115,000 created the fiber-optic network, iProvo, in 2004, which has struggled to break even. (AP Photo/The Salt Lake Tribune, Rick Egan)

Terms of an agreement between Google Inc. and Provo, Utah, show the company will pay $1 for a fiber-optic system that cost $39 million to build.

Even as Google takes ownership of the municipal network, Provo will have to pay off loans for its construction for another dozen years.

Provo officials say it's a good deal because the system hasn't been able to pay for itself. They say Google will make upgrades and complete connections to every home.

Mayor John Curtis, center, along with Gov. Gary Herbert, left, and Rebecca Lockhart, makes the announcement that Google will make Provo, Utah, the third city to get its high-speed Internet service via fiber-optic cables, Wednesday, April 17, 2013 in Provo. The Provo deal is the first time Google plans to acquire an existing fiber-optic system. The city of 115,000 created the fiber-optic network, iProvo, in 2004, which has struggled to break even. (AP Photo/The Salt Lake Tribune, Rick Egan)

And Fiber will offer basic Internet service at no charge for a $30 hookup fee—far less than the current $700 activation fee.

Provo are paying off the cost of the network with a $5.35 monthly utility fee, and city officials say they'll get something for their money now.

Explore further: Scientists twist radio beams to send data: Transmissions reach speeds of 32 gigabits per second

4.6 /5 (7 votes)
add to favorites email to friend print save as pdf

Related Stories

Google reduces fee to break Nexus One contract

Feb 09, 2010

(AP) -- Google Inc. is shaving $200 off the fee that it charges customers of its new Nexus One phone to break a service contract with T-Mobile, as federal regulators continue to probe such fees and the rationale for them.

Recommended for you

New ZEBRA bracelet strengthens computer security

1 hour ago

In a big step for securing critical information systems, such as medical records in clinical settings, Dartmouth College researchers have created a new approach to computer security that authenticates users ...

New RFID technology helps robots find household objects

1 hour ago

Mobile robots could be much more useful in homes, if they could locate people, places and objects. Today's robots usually see the world with cameras and lasers, which have difficulty reliably recognizing ...

User comments : 4

Adjust slider to filter visible comments by rank

Display comments: newest first

alfie_null
5 / 5 (2) Apr 19, 2013
Hopefully inspiring competition among ISPs. Desirable in my view: minimally restrictive on what I can do with my connection. And get rid of marketing double-talk and fine print. No packages (e.g. TV, phone). No contracts. No special introductory prices. No tiers of service or cost-extra options. Carry on, Google. Maybe the large ISPs will get a clue someday.
jalmy
1.8 / 5 (5) Apr 19, 2013
I <3 GOOGLE!!!!!!
SYinc
3 / 5 (2) Apr 19, 2013
I, for one, welcome our Google overlords...
antigoracle
1 / 5 (4) Apr 19, 2013
Google, does not do anything for free.