Author Archives: Jesse

Rumor: Mstar Moves Back to ServerPlus for Support

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There’s a rumor about that Mstar has outsourced all customer support to ServerPlus. Employees in Mstar’s call center were reportedly either laid off or offered a job at ServerPlus with a big pay cut, possibly down to as little as $10 an hour. Mstar had initially used ServerPlus for fiber customer support and found it lacking, so the move back to them seems like a step backwards. I’m going to count it as another tick mark on the Mstar Death Watch.

A separate rumor says that Broadweave is in negotiations with ServerPlus for the same thing. That would be bad news for anyone currently in a customer service position with the company.

UTOPIA in the News, makes Telephony Online and DSLReports

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Telephony Online has a great article on UTOPIA that gives some insight as to what exactly they’re doing over there. It also includes some quotes from Fibernet and FuzeCore, the new providers on the network. DSLReports also picked up on the article and offered some additional commentary worth checking out.

Mstar, DynamicCity Were Also Bidding for iProvo

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The Salt Lake Tribune reports that city records show that Mstar and DynamicCity, the network management company for UTOPIA, also put in bids to either manage or run the city’s fiber optic network. A fourth company also reportedly made a bid, but their name is being kept secret by the city. DynamicCity President Cory Turner (who I know and who wasn’t president of DynamicCity at the time) said that the bid to operate the network was a long-shot at best. That proposal was put together by D. Keith Wilson.

Mstar’s involvement in the process, however, is rumored to be very different from how it is portrayed in this article. Word on the street is that once they caught wind of the sale and were denied based on their account being in arrears, they quickly made a deal with Broadweave to sell the customer list and have their debt forgiven. The rumor mill says that Broadweave then double-crossed Mstar when board member Fraser Bullock threatened to pull business from the law firm that employed Mstar’s principal investor and demanded payment to settle the matter.

The major dailies reportedly are all aware of these shenanigans but have gotten a lot of pressure to keep it all under wraps. I’m privvy to only the surface details of the matter, but any current or former Mstar employees who’d like to fill in the gaps is invited to call or e-mail me.

Broadband Bytes: November 15-21, 2008

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Mike just posted a Broadband Bytes, but there’s a few other things that are worth mentioning in the world of telecommunications.

  • Remember how pinched consumers are more likely to drop video service than data service? A recent survey shows that unhappy people watch a lot more television than happy people do. With economic times getting tough, it may be a smart move to come up with innovative low-cost video packages to snag/retain these customers. Comcast is already trying out a $50/mo data/voice combo and is offering free basic cable for a year for anyone who subscribes to either voice or data services.
  • Comcast is looking at sneaking in data rate increases after all. Their plan is to upgrade various tiers of service to higher speeds with accompanying higher rates. If you want to downgrade to a lower-priced package, tough noogies: speeds under 12Mbps will be gone except for a 768Kbps “value” tier. Competing providers should be able to snap up a lot of customers by offering a slower and cheaper tier between the two. T-Mobile is also raising rates on data packages, but with a 10GB monthly cap and terrible ping times, few are likely to use it for primary access.
  • Copper is dead? Multichannel is pretty sure that DSL is DOA and the subscriber numbers back that up as cable dominates. (Ars Technica offers some excellent commentary on the Multichannel article.) AT&T, while still clinging to FTTN with U-Verse, is already using WiMax as a DSL replacement in rural areas and could very well push voice over WiMax. Businesses are also seeing the light (bad pun, I know) and choosing Ethernet and big-pipe services (think OC-3/OC-12+) over T1 and T3. The price of T1 lines is also leading many small businesses to look at business-class DSL and cable options. Some are going so far as to say that copper landlines could be dead by the end of Obama’s first term as customers flock to VoIP and cell phones.
  • Telcos are hurting but cable could stick around for a while as coax offers a good chunk of bandwidth. They do, however, feel the pinch from the massive amount of bandwidth eaten up by video services. Even as SDV and DTA boxes ease some of that up, the demand for higher-quality signals to all of these shiny new HDTV sets will eat up a lot of the gains as cable operators are forced to move from 480p to 720p and 1080p signals. Competing providers will need to move quickly to offer true HD signals with low compression and superior data rates while the cable companies perform system-wide upgrades over the next 18-24 months. There’s something said for being first to market.
  • Speaking of HD, incumbents are still making agressive inroads with their HD channel counts. Comcast and Time Warner announced more HD channels this week and Dish Network is agressively adding OTA HD to many of their markets. HD isn’t the only content being expanded; both Verizon and Dish are adding more international programming as well.
  • Video isn’t just for your TV. Netflix is rolling out HD streaming with coincides with Watch It Now movies on the XBox360. YouTube is also doing a trial of high-quality video. Of course, streaming isn’t everything. Bright House is also pushing customers towards online video, just of the pay variety. They’ve inked a deal with RoadRunner to sell via their online store. All of these things is going to increase demand for greater bandwidth. And speaking of “content” delivery, you can now use your TiVo to order a pizza from Dominoes.
  • Comcast apparently feels bold enough these days to blow off the FCC. FCC Chairman Kevin Martin asked for data on the operator’s policy of moving channels out of analog tiers and into more expensive digital ones, but Comcast was bold enough to give him only partial data even as threats of fines loom.
  • It also appears that DTA boxes could be a sticky subject. CableONE asked the FCC for a waiver for a HD-capable DTA box with integrated security. This could shut out CableCARD (and possibly Tru2way) as well as a number of third-party devices like TiVo DVRs. Manufacturers are already pushing these boxes which could very well kill the Carterphone of video before it gets off the ground. Competitive operators will see the opportunity to be fully interoperable with CableCARD and Tru2way and ensure that customer DVRs will work on their systems.
  • Local programming is in high demand, but there are some chinks in the incumbents’ armor. Since local programming options like high school sports, General Conference and rebroadcasts of local news are so popular, competing operators should mimic what Comcast is doing and look into an old-school public access channel.
  • Online college classes are starting to show serious promise. Minnesota is pushing to get a quarter of college credits completed online by 2015. A collection of Utah colleges and universities headed by USU is pushing OpenCourseWare, entire courses in digital format that are free to reuse and distribute. These kinds of initiatives could drive demand for metro area networks between the universities and students.

The Now-Missing Broadweave Post

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Yes, it’s gone. The short version is that after feedback and some careful consideration, I determined it was boneheaded to have even posted the full letter in the first place. Instead, I’ll summarize the key allegations and rumors from the tipster who sent it to me:

  • Lax physical and logical security
  • Poor customer service
  • Preferential treatment of VIPs such as city council members
  • No accurate record of which customers to bill and multiple changes of the billing system
  • Little oversight from the corporate office
  • Sexual harassment and hostile working environment

A current Broadweave employee wrote that most of the allegations were either untrue or half-truths. Given their explosive nature, the letters themselves shouldn’t have even gone up in the first place. It was dumb on my part and I should have just summarized the key points.

The only one that I have any kind of confirmation on is the security. I’ve had at least three sources confirm that there was a significant theft of long-distance services (6-figure, one of them says). I initially thought it was just bad luck, but a lack of appropriate security would make me reconsider that. Everything else? That’s anyone’s guess.

Mayor Billings Put on the Broadweave Board

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The Provo City council voted to put Mayor Billings on Broadweave’s board as the official representative from the city. I wonder, however, if this will provide adequate city oversight or not. Mayor Billings kept the council in the dark during the negotiation of the deal and there have been a lot of negative rumors about Broadweave’s financial condition. This bring up the obvious question: would the mayor delay disclosure of negative information to the council to save his own political hide? It’s worth asking given the number of other questionable deals that Provo has managed to get itself into during his terms as mayor.

Broadband Bytes: November 8-14, 2008

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Here’s a quick list of what’s going on in the telecommuncations market for the week of November 8-14:

Meta: Some Small Upcoming Site Changes

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This week has presented some unique opportunities for me in regards to FreeUTOPIA. Over the course of the two-plus years that I’ve been posting, I’ve met many people involved with and interested in UTOPIA including service providers, contractors and even opponents. It has not only provided unique insights into how the project functions; it has also provided a pretty strong professional network. With goods but affordable websites and a good host, which I found at this Hoster’s low-cost hosting guide.

On Monday, I was approached with an offer to do part-time consulting work for a UTOPIA independent contractor who also plans to pursue work with several other fiber optic systems. Their proposal was that I spend a couple hours a week putting together a “reading list” of what’s happening in the telecommunications space to inform UTOPIA staff of industry developments and help keep the project on-track. This feature will also be published weekly on this site (I’m gunning for Saturdays) under the Broadband Bytes banner while looking at fantastic themes for photographers. Jonathan Karras and Mike Taylor will still be contributing authors on the site, though they will probably tend more towards traditional articles and essays.

I was also asked by an author at a national telecommunications magazine to consider petitioning the magazine’s editor for a position as an article contributor on subjects related to fiber networks in Utah. Paid or not, I’m interested in bringing more information about UTOPIA to a wider audience and followed his advice to inquire about it. We’ll see if it goes anywhere.

So does this mean I’m selling out? I hope not. Much to my wife’s chagrin, I have been steadfastly opposed to running advertising on Free UTOPIA since it benefits me and me only. I don’t want the site itself to be a revenue generator no matter how tempting the paycheck may be. I don’t, however, have any problem with offering paid consulting services to contacts I’ve made via all of this work that I’ve done. I won’t lose any sleep at night over accepting this offer and aside from who’s writing most of the Broadband Bytes features, it should be the same old site.

Headend Brawl: UTOPIA and Provo at Odds on Shared Assets

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As the clock ticks down on a contract between UTOPIA and Provo for a shared video headend, the fight over who owes who money is starting to heat up. I’ve had a lot of anonymous tipsters relating details and rumors over some strong disagreements regarding compensating UTOPIA for their portion of the headend, a subject that appears to be strongly muddied by unclear contracts with Broadweave.

I’m no lawyer, but from looking at the headend agreement, it appears that Provo sold UTOPIA’s interest in both the VOD and Wildvine servers to Broadweave as a part of the sale of iProvo and used UTOPIA’s unused exercise of the right of first refusal as consent to do so. If that is the case, UTOPIA would naturally like to be paid for their share of that asset; it just isn’t clear who should cut the check, City of Provo or Broadweave. Given that the total is rumored to be in the hundreds of thousands of dollars range, I can imagine that all parties involved are taking a strong stance on their respective positions.

The Daily Herald reported that both Kevin Garlick of Provo and Todd Marriott of UTOPIA are confident they can work something out, though I’ve heard that the problem in all of this is Broadweave CEO Steve Christensen who refuses to reach any kind of agreement. It looks like the headend agreement with Broadweave was signed in August of 2007 and I don’t think UTOPIA was involved in that discussion. This is coming back to bite Provo since they decided to make a lot of assumptions instead of talking it through with their partner.

Given the price tag and the tight financial situations with Provo, UTOPIA and Broadweave, I’m anticipating that this disagreement will get ugly if none of the sides plans to budge. Here’s to hoping they work out some kind of equitable solution instead of ended up in an “all sides lose” expensive legal action.