Google to buy $39m fiber service in Utah for $1

Google Fiber

If you live in Provo, here is a good news for you. Google has selected Provo as the third city where it will be providing its high speed internet and TV service after Kansas City, Mo., and Austin, Texas. The fiber optic system which is present in Provo now cost the State $39 million to build. But Google will be paying just $1 for this municipal fiber optic network, according to the agreement between the internet company and Provo.

Provo is a city of 115, 000 which is about 45 miles South of Salt Lake City. People now pay $5.35 a month against utility even if they do not use the service. But after Google starts its service in the city, they will get something in return for the money the residents of the city pay. And if they pay $30 one time for the hook up, they will be getting free basic internet service. This is a very cool offer when you consider the current $700 activation fee.

But even if Google starts the service soon, “Provo will have to pay off loans for its construction for another dozen years, according to agreements released Thursday by city officials.” But the search engine giant has said that it will be investing a sizable amount of money for the development of the network in the city. Associated Press writes:

Google, which reported Thursday that it earned $3.3 billion during the first three months of the year, pledged to spend “considerable funds and resources” to upgrade Provo’s system. The agreement doesn’t specify a level of spending, but Deputy Mayor Corey Norman estimated it will cost Google around $30 million to upgrade computer server and switching gear for faster Internet speeds and to dig trenches for final fiber connections.

It is said that the internet company will have to replace the infrastructure around the fiber optic cable for its service. And the service is expected to be built out in five years according to the report.

Source: Associated Press