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PROVO, Utah (AP) -- The cable company selected to provide services through this city's high-speed fiber-optic network is seeking to buy the city's cable company.
The Video Internet Broadcasting Corp., based out of Ephrata, Wash., announced Thursday the company has entered a memorandum of understanding with Provo to purchase its cable company by the end of this month.
"The negotiations process with the city is now winding down," said Bob Murtagh, chief operations officer for VIB TV.
Currently, Provo Cable serves more than 2,400 local residents.
But once the fiber-optic network takes shapes, VIB TV will give subscribers the option of upgrading to its HomeNet programming for Internet, TV and phone services.
The nearly $40 million "iProvo" project would build a fiber-optic network to deliver high-speed Internet, phone and cable television access to businesses and residents.
VIB TV is waiting for lawyers to review the draft contract before moving forward with construction of the iProvo network.
If the contract is approved by the Provo City Council, which Murtagh expects will happen July 20, VIB TV will finalize its purchase of Provo Cable and begin to lay the fiber-optic lines necessary.
After the fiber optic system is in place, which could take up to two years -- its services will be leased to private businesses, who will in turn lease it to residents.
(Copyright 2004 by The Associated Press. All Rights Reserved.)