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

Google Fiber boxes rest on a sofa in the home of Becki Sherwood November 27, 2012 in Kansas City, Kansas. Sherwood's neighborhood is the first to receive Google Fiber.

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.

Read More: Google's First Quarter Earnings Rise 16%, Beat Wall Street Predictions


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Kuntheer

How much does it cost when the Government gives you something free??????

April 19 2013 at 9:56 AM Report abuse rate up rate down Reply
samscuba7

Another reason NOT to let government get involved in business. The taxpayers get screwed in the end every time!

April 19 2013 at 8:11 AM Report abuse rate up rate down Reply
Eric

Unbelievable. At least the taxpayers aren't getting shafted by Google, but they really need to take up this boondoggle with those they elected to conduct the business of governing. I'm betting that if a proper investigation were conducted they'd find corruption somewhere in this mess. 39 million dollars, government and inept management almost always mean misconduct.

April 18 2013 at 11:20 PM Report abuse -1 rate up rate down Reply
airsyspro

Here we go again, governement showing all of us that it knows best how to waste tax payer dollars!

April 18 2013 at 9:30 PM Report abuse +3 rate up rate down Reply