The Provo City Council in Utah voted unanimously on Tuesday to approve the sale of its iProvo fiber-optic network to Google.
"That's it Provo — the iProvo millstone is now Google Fiber by a unanimous vote," Provo city council member Sterling Beck tweeted on Tuesday.
The move will make Provo the third city to embrace Google's gigabit Internet and TV service after Kansas City and Austin. Google will upgrade iProvo to gigabit technology and finish network construction, so the 115,000 residents along the existing network can tap into Google Fiber.
"We are thrilled that the Provo city council approved our agreement, and we look forward to getting to work on the network as soon as possible," a Google spokeswoman told PCMag.
Google's agreement with the city is not yet final; it needs to go through a closing period, meaning some details still need to be ironed out. Google is currently working with city engineers to prepare for that closing.
The Web gaint will reportedly pay just $1 for the iProvo network, which cost $39 million to build. It might sound like Google is making out like a bandit, but city officials say it's actually a good deal for both parties.
In addition to the pricier gigabit Internet and TV service, Google will also provide free, basic 5-megabit Internet service to all Provo residents for seven years for a one-time, $30 installation fee. Google will also offer free gigiabit service to 25 public institutions, including schools and recreation centers.
The city will still have to front $1.7 million in equipment, civil engineering, and insurance costs, according to the Salt Lake City Tribune. In addition, taxpayers must pay off that $39 million bond. With interest, this comes out to $3.3 million in yearly bond payments over the next 12 years, the paper said.
Still, the prospect of having Google Fiber has been met with excitement. Kansas City has seen an uptick in startup activity since the launch of the network there, and Austin said it expects the same type of entrepreneurship when Google Fiber arrives in 2014.
Speaking of Austin, Time Warner Cable on Thursday announced the rollout of free Wi-Fi for customers in Austin. The citywide Wi-Fi Hotspot network is free to TWC customers with Standard Internet or above and Business Class subscribers. Those who don't qualify for free access can tap into a free trial for $2.95 per hour.
In the wake of the Google Fiber Austin announcement, TWC's director of digital communication, Jeff Simmermon, pointed out that Google's launch of Fiber in Austin puts the two companies in direct competition with each other.
"We're absolutely taking this competition seriously, and we're not just going to roll over and go out of business here," Simmermon wrote. "We're going to evolve to meet our customers' needs and offer products that meet or exceed our competition."