Residents of Provo, Utah got some good news this week when Google announced plans to buy a city-owned fiber-optic system and upgrade it to ultra fast gigabit technology. But just how much does one pay for a city-wide fiber network? If you're Google, the answer is $1, according to a new report from The Associated Press.
The news outlet got its hands on a copy of Google's agreement with Provo, and it offers up some interesting details about the deal. Namely, the so-called iProvo network, which cost $39 million to build, will cost Google just one dollar.
Moreover, even when Google takes ownership of the network, the city will have to pay off its construction loans for another 12 years, the agreement reportedly notes. It might sound like Google is making out like a bandit, but city officials said it's a good deal for both parties since the 9-year-old system has as of yet struggled to break even. Google will also incur costs building out the network and providing service.
In a blog post Residents of Provo, Utah got some good news this week when Google announced plans to buy a city-owned fiber-optic system and upgrade it to ultra fast gigabit technology. But just how much does one pay for a city-wide fiber network? If you're Google, the answer is $1, according to a new report from The Associated Press.
The news outlet got its hands on a copy of Google's agreement with Provo, and it offers up some interesting details about the deal. Namely, the so-called iProvo network, which cost $39 million to build, will cost Google just one dollar.
Moreover, even when Google takes ownership of the network, the city will have to pay off its construction loans for another 12 years, the agreement reportedly notes. It might sound like Google is making out like a bandit, but city officials said it's a good deal for both parties since the 9-year-old system has as of yet struggled to break even. Google will also incur costs building out the network and providing service.
In a blog post earlier this week, Provo Mayor John Curtis called iProvo "troubled" and said it has been a "personal goal" to find a viable solution for the network.
On that front, it looks like Google has a contingency plan if things go awry. According to the AP, the agreement gives Google the ability to sell the network back to the city for — you guessed it — $1 "if things don't work out."
Meanwhile, another clause in the agreement gives Google the option to build an extensive public Wi-Fi network in the city, enabling people in the area to tap into the Internet on their mobile devices. Residents shouldn't get too excited about the Wi-Fi option just yet, however, as there are no guarantees that it will actually happen.
earlier this week, Provo Mayor John Curtis called iProvo "troubled" and said it has been a "personal goal" to find a viable solution for the network.
On that front, it looks like Google has a contingency plan if things go awry. According to the AP, the agreement gives Google the ability to sell the network back to the city for — you guessed it — $1 "if things don't work out."
Meanwhile, another clause in the agreement gives Google the option to build an extensive public Wi-Fi network in the city, enabling people in the area to tap into the Internet on their mobile devices. Residents shouldn't get too excited about the Wi-Fi option just yet, however, as there are no guarantees that it will actually happen.
The deal must be approved by the Provo City Council at a meeting on Tuesday. If it passes, Provo will be the third city with access to Google's super-fast fiber Internet and television service after Kansas City and Austin.
No comments:
Post a Comment