Google (NASDAQ: GOOGL ) is getting a deal in Utah. According to official agreement terms (link opens in PDF) between the Provo municipality and Google, the search engine corporation will pay $1 in cash for a $39 million fiber-optic system. With this agreement, Provo will become Google's third "Fiber City" (after Kansas City and Austin ), connecting nearly all its homes to the corporation's ultra high-speed Gigabit Internet.
The network was initially created in 2004, but fell on hard times around two years ago. According to the Associated Press, Provo households currently pay a $5.35 monthly utility fee to cover network costs. Through an extensive proposal process, Provo found its match with Google's offer. Under its new ownership, Provoans will be able to pay a $30 activation fee for at least seven years of free Internet service.
Mayor John Curtis noted in a statement:
When I came into office, iProvo was deemed to be the single biggest problem facing Provo City. The first step was to address the outstanding bond on the network, which we've done. Now, we're able to realize the dream of providing reliable access to Provoans in a viable way. This is a very exciting moment for Provo.