) went to the dollar store this week.
however, instead of buying cheap knickknacks from Dollar Tree
), Google went shopping for a municipal fiber-optic system in
Provo, Utah, that cost $39 million to build. According to the
, the deal is "widely expected to be approved Tuesday by the City
Council, making Provo the third city selected by Google for
high-speed Internet and television service."
This would mark the company's third attempt at expanding
Google Fiber, the company's Internet and pay-TV service. Google
has already rolled out the service in Kansas City, Kansas and
Kansas City, Missouri. This month the search engine giant
confirmed that it will bring Google Fiber to
its plans to expand to Provo earlier this week. The company
to promote the service's debut.
"Utah is already home to hundreds of tech companies and
startups, and many of them are based in Provo," Kevin Lo, General
Manager of Google Fiber, wrote in a
"In fact, the Provo area ranks second in the nation in patent
growth, and is consistently ranked as one of the top places to
live and do business in the U.S. We believe the future of the
Internet will be built on gigabit speeds, and we're sure the
businesses and residents of Provo already have some good ideas
for what they'd build with a gig."
If the plan does not work out, Google can sell the system back
to Provo for $1.00, making it one of the most favorable deals in
the company's history.
Normally Google would have to pay more, but Provo has
struggled to build out the existing fiber-optic system. According
to AP, residents were charged $5.35 on their utility bill whether
they use the service or not. Even with that charge, the system
has not been able to support itself.
By selling it to Google, Provo hopes that it will finally be
able to provide its residents with fast and reliable Internet
Typically Google charges $300.00 for the
so-called "free" version
of Google Fiber, which provides users with low-speed broadband
(up to 5Mbps download) for several years. In Kansas City,
customers are guaranteed to receive the free service for at least
Since Provo residents already pay more than $5.00 a month for
Internet, they will only be charged a one-time activation fee of
$30.00 for the 5Mbps option. Prior to the Google deal, Provo
residents had to pay a fee of $700.00 to access the service.
Google has not said how much it will charge Provo residents
for a faster, more robust Internet experience. In Kansas City,
residents pay $70.00 a month for download and upload speeds of up
to one gigabit. Unlike the Xfinity Internet service provided by
), Google Fiber does not currently employ any data caps.
Google also offers an Internet and pay-TV service combo in
Kansas City that retails for $120.00 per month. This service
more than 170
cable channels, several local channels (depending on your area),
and optional add-ons like HBO, Showtime and Cinemax.
Louis Bedigian is the Senior Tech Analyst and Features Writer
of Benzinga. You can reach him at 248-636-1322 or
louis(at)benzingapro(dot)com. Follow him
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Profit with More New & Research
. Gain access to a streaming platform with all the information
you need to invest better today.
Click here to start your 14 Day Trial of Benzinga