Today’s announcement that Provo City has reached
an agreement with Google Fiber to purchase the city’s iProvo network encouraged
us at the Chamber to do a little math.
While Google Fiber understandably has chosen not
to divulge the precise figures of its anticipated investment in Provo’s
network, our quick, “back of the envelope” valuation reveals just how
significant the company’s investment in our community could be.
It is impressive and shows that Google Fiber
intends to be deeply invested in our community for many years to come.
First, Google Fiber has committed to “finish network construction so that every home along the existing
iProvo network would have the opportunity to connect to Google Fiber.” There
are about 35,000 homes in Provo and only 9000 are currently connected. From the city’s experience, connecting each
new home costs Veracity between $600 and $1000 dollars. So, to connect an additional 26,000 homes/structures
at an approximate cost of $700 per connection would equal an $18 million
investment.
That
is a considerable investment in the network, and one the city would likely
never had the ability to make. And that is not considering the unknown cost to
upgrade all of the 10 year old, out of date equipment to allow the network reach
Gigabit speed. This would be another impossible feat for a city-owned network
in the near term, much less the equipment upgrades that are usually necessary
every 5 years.
Second,
the savings to Provo residents who opt for Google Fiber’s free Internet service
is very powerful. Again, using our rough figures, approximately 35,000
residential customers could save some $30 a month (an average of monthly plans
currently available for varying levels of Internet service) for a household
total of $360 in annual savings. Even if only 20,000 of our households choose
to take advantage of the free service, the numbers add up quickly. Multiply
that $360 by 20,000 and again by seven years – the minimal amount of time
Google Fiber intends to offer free Internet service – and we get $50 million of
real value for the people of Provo.
None
of this, of course, even begins to take into account the value to businesses
and entrepreneurs of being one of the first communities in the United States
with this super fast connectivity. If Kansas City is any model, we know that it
will put us on the map once again as the ideal place for great employees and
innovators.
The Utah Valley Chamber of Commerce is excited to welcome Google Fiber
as a partner to Provo City, Utah County and the entire State of Utah. It is
great for our business community, great for community and a great deal for all
of us as taxpayers. I can’t wait to see what happens next.
Val Hale, President of the Utah Valley Chamber of Commerce