Google set to acquire existing municipal fiber network with some special terms.
Hot off of the heels of Google Fiber's planned expansion to Austin,Texas, was another announced planned expansion. In the wake of the news of Google Fiber's planned expansion to Provo, Utah, details have emerged that see Google acquiring the city's existing fiber network for only $1. The network is valued at $39 million, and should Google elect to abandon the initiative, the network would be sold back to the city a $1.
Kevin Lo, General Manager of Google Fiber, "In order to bring Fiber to Provo, we’ve signed an agreement to purchase iProvo, an existing fiber-optic network owned by the city. As a part of the acquisition, we would commit to upgrade the network to gigabit technology and finish network construction so that every home along the existing iProvo network would have the opportunity to connect to Google Fiber."
Within the terms of the deal that still has to be approved by voters, Google would offer at least seven years of 5Mbps internet to every home on the existing Provo network, free of monthly charge, with the only caveat an initial $30 connection charge. Google would also provide free Gigabit Internet to twenty-five public institutions, including schools in the Provo area.
Google Fiber currently offers Gigabit Internet and TV in Kansas City and plans to expand to several satellite cities such as Olathe, Kansas. If the Provo deal is approved, then Provo would join Austin as the next two cities to be part of Google Fiber.
Source: ZD Net