Google iProvo Deal: If you have not been keeping up with the latest from Google Inc (NASDAQ:GOOG), you may be unaware of the fact that the search engine giant is expanding its Fiber offerings. Most recently, the company decided to take Fiber to Provo, Utah.
While many would expect Google Inc (NASDAQ:GOOG) to build the system from the ground up, much like it has in the past, it appears that they are taking a different approach this time around.
Instead, according to ZDNet, Google plans to “buy out the city’s own network.”
Although it has yet to be approved by city council, Google has intentions of purchasing iProvo. The deal will be voted on by the Provo City Council on April 23.
While the financial details of the deal have yet to be disclosed, and this likely will not be the case until after it is finalized, the Associated Press is reporting that Google is getting one heck of a deal.
The system cost $39 million to construct, but it appears that Google is going to purchase it for $1. You saw it right, $1.
This is not the way Google Inc (NASDAQ:GOOG) has operated in the past, including with its first two Fiber destinations in Kansas City, Missouri and Austin, Texas. Does that mean it can’t work? Well, that is up for discussion. Of course, nobody would expect the company to make this decision if it were doomed for failure from the start.
Deputy Mayor Corey Norman is hoping for big things when the deal is finalized. While the company is not expected to reach a certain level of spending, it is expected that it will spend roughly $30 million to bring the network up to par.
Norman added, “This will be huge. Our fiber is still good, but they have to replace the infrastructure around the fiber. That stuff has been around for years.”
If the agreement goes through as planned, Google Inc (NASDAQ:GOOG) will have five years to build out the system. As you can see, this is not something that is going to happen overnight. Instead, the company is going to have to put a lot of time and money into the project to ensure its success over the long haul.
The decision for Google Fiber to head to Provo, Utah is one that surprised many people. Maybe the ability to purchase an existing system, the one from iProvo, was the reason why Google Inc (NASDAQ:GOOG) made this choice?
Want to learn more about Google’s Fiber network?
Check out this video to see what the company has up its sleeve:
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