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 Google Fiber will offer basic Internet service at no charge for a $30 hookup fee—far less than the current $700 activation fee.
Provo households 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.
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Google buying $39M fiber service in Utah for $1 (2013, April 18)
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