Sunday, April 21, 2013

Google Snaps Up a $39 Million Fiber Network in Utah for $1

SALT LAKE CITY -- Terms of an agreement between Google (GOOG) 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. And Google Fiber will offer basic Internet service to those in the system 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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