Google has actively been working on its high-speed internet and television service. To that end, the search giant recently snagged a great deal when it bagged the municipal fiber-optic system in Provo, Utah for a mere $1. The city spent some $39 million on constructing the network.
In the past instances, Google has created its own fiber-optic networks to offer its internet service. However, this is the first case in which the company is acquiring the fiber-optic system from another party. Since Google is getting its hands on a ready-made network, called iProvo, chances are that Provo residents may get access to high-speed internet service from Google pretty soon.
The deal may seem anomalous at first sight. But the problem with the municipal fiber-optic system in Provo is that its business model rendered it unsustainable. The city still has a lot of loans to pay on the network that required funds to the tune of $39 million. As part of Google’s acquisition deal, the search giant will be spending substantial funds to ramp up the network. Meanwhile, the city will be the one to pay off the rest of the loans.
The acquisition may also be a relief for the common users who have been paying a token $5.35 per month on utility bills for the fiber-optic system. The fee had to be paid, regardless of whether a resident used the service or not. Google is promising that once its acquisition is final, it will start offering the internet connectivity and television service for free if the users pay a one-time hookup fee of $30.
According to Deputy Mayor Corey Norman, “This will be huge. Our fiber is still good, but they have to replace the infrastructure around the fiber. That stuff has been around for years.”
Source: AP
Courtesy: Gizmodo
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