Google’s Buying $39M Fiber Service in Provo,Utah for $1

According to terms of agreement between Google Inc. and Provo, Utah, the company will pay $1 for a fiber optic system that cost $39 million to build.

Provo will still have to pay off loans for its construction for more than 12 years, even as Google takes ownership of the municipal network.

Provo said it was a good deal because Google will make upgrades and complete connection to every home. Google Fiber will offer basic internet service at no charge and activation will cost $30- far less than the current $700 activation fee. Provo residents will be paying the cost of the network for $5.35 monthly utility fee. Google will have 180 days to take over the network successful once the deal is signed. Google will also have five years to build out Provo’s current system when the deal is finalized.