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Google Fiber, Provo Seal the Deal

Google Takes Over iProvo Network, Setting Up Broadband Battle with Comcast and CenturyLink 7/23/2013 4:15 AM Eastern

Google Fiber has closed its deal to acquire iProvo, an existing fiber network owned by the city of Provo, Utah, thus setting up a battle with incumbent carriers Comcast and CenturyLink.

"I'm happy to announce today that pencils are down and we've closed the deal on the network with Google," Provo Mayor John Curtis announced in a statement posted Monday. "Similar to purchasing a home, after both parties agreed to the details of the offer, it took a little while to iron out the last few things that needed to be addressed or clarified. That was all taken care of today and we're off and running."

Google Fiber and the city announced the deal on April 17, with Google Fiber agreeing to upgrade the iProvo network to 1 Gbps, offer a subscription video service and complete network construction (for free) so every home on the existing iProvo network can connect to Google Fiber’s services.  Google has also agreed to wire up about two dozen local public institutions and offer a free 5 Mbps internet for up to seven years. Under the original terms of the deal, Google Fiber has agreed to exchange $1 to close it.

About $39 million reportedly has already been spent on the iProvo Network so far. In April, the Utah Valley Chamber of Commerce estimated that only 9,000 of 35,000 homes in  Provo were connected to the iProvo network, and that it would cost about 18 million to complete the buildout.  

Google Fiber has previously said it expects to start network upgrades as soon as the deal is closed and to begin delivering services to customers in Provo by late 2013.

"Over the next few months, we’ll be working to upgrade our network in Provo to Google Fiber speeds that are up to 100x faster than basic broadband. We’ll have more information about how to get Google Fiber this fall," a Google Fiber spokeswoman said in an emailed statement.

Google Fiber has deployments underway in the Kansas City area, and has secured franchise deal sin several nearby communities, including Mission, Shawnee, and Olathe, Kan.; and Lee’s Summit,  Gladstone, and Grandview, Mo.

Google Fiber also has a plan underway to start connecting homes in Austin, Texas, by mid-2014.

 

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April