Qwest and Verizon Sittin' in a Tree… M-E-R-G-I-N-G?

For several months now, rumors have been swirling about that Verizon may attempt to purchase Qwest, a move that would put us one step closer to a reversal of the 1984 breakup of Ma Bell. Most cite Qwest’s switch to selling re-branded Verizon Wireless service as testing the waters. Qwest is also in a weak financial position with dropping profits and subscriber losses. It’s no secret that the company has spent years trying to find a buyer after the company suffered precipitous drops in customer satisfaction and service quality from 2001 onward. Could cash-rich Verizon be the white knight they’ve been waiting for?

Maybe. Continue reading

Broadweave's Business License Issues Continue

Remember how Broadweave was operating without a business license in any city it did business in? It seems that despite having gotten licensed to do business in South Jordan and Provo, they still can’t get their ducks in a row in Washington City. Company lawyer Jay Cobb said that Broadweave through they had the matter taken care of yet when I spoke to the city recorder in May, she claimed that Washington City had been trying for months to get Broadweave to take care of its business licensing issues without any success. I suppose we shouldn’t be too surprised at a lawyer who bends the truth.

I did a bit of checking on my own and found that that Broadweave still continues to operate in Lehi without a proper business license. I guess they’re too busy in Provo not fixing the program guide and not adding new VOD options to take care of that.

Mayor Spins as Rumors Fly: Just What is Going on With iProvo?

The Deseret News recently ran an article on iProvo in which Mayor Billings claimed that iProvo is seeing a major turnaround under Broadweave’s direction. Certainly there are areas that have been improved drastically, live support being the most notable. Unfortunately, this improvement in response time has been at the cost of frequent outages with the TV programming guide, a 3-4 hour outage this morning for all Internet users and a lack of general notification as to what the heck exactly is going on.

Mstar is reportedly still receiving payments for customers they sold to Broadweave. Bills have arrived from Broadweave without explanation as to who this bill was from and their purchase of the network. Rates were scheduled to increase, but not notification was sent as to how existing plans will be migrated. This is top-notch management? There’s just two weeks for Sorenson to complete their review of the financing without so much as a peep as to how that’s going.

Amidst all this are many disturbing rumors floating around. CEO Steve Christensen is reportedly having to pay employee salaries out his own pocket. It’s also alleged that Broadweave is using trucks with city plates to do business in Provo. We’ve also witnessed the departure of all iProvo NOC techs and a significant amount of the rest of the staff, a major loss of expertise that cannot be easily compensated for. With the lack of basic notifications and the “silent running” attitude, it’s no wonder that rumors like this continue to persist.

Sounds like Broadweave needs to reconsider who’s doing their PR. Anyone out there willing to fill in the gaps?

Courts Give Thumbs Up to Cablevision's Network DVR

Cablevision was onto something awesome when they decided to do a DVR without additional hardware in your home, instead recording and playing back the streams directly from their headend with no equipment for you to maintain. Now the courts have decided that content providers are up in the night with their claims that such technology infringes copyright and have allowed Cablevision to move forward with this technology. What does this mean for you? It means cheap DVR with the ability to watch from any set in the house. Score one for technology and the consumer.

U-CAN Report: July 29 2008, Holladay

The third meeting of U-CAN was held last night in the Holladay Library and was a great discussion on how to add value to UTOPIA and make it more attractive to customers. In particular, content providers are eager to use the high bandwidth offered to offer up high-resolution live performances as well as more locally-produced content. Equipment makes are also chomping at the bit to find a provider interested in using the “cool toys” they produce to make use of the 100Mbit and 1Gbit pipes running into homes. It’s very encouraging to see these groups recognize the value of the network and want to work with service providers to encourage more widespread deployment and distribution.

  • Redman Movies rents equipment to the local film industry and sees all kind of possibilities for delivering the finished product via UTOPIA. Some ideas included simulcasting live sporting events, concerts or theatre performances, offering up HD content in native 1080p and even looking down the road at 3D television.
  • TenX Networks builds all kinds of network appliances including DVRs, home media servers, video surveillance and conferencing equipment and VoIP setups. Using a high-bandwidth network to up the video quality instead of trying to squeeze more and more out of compression algoriths seems like a winning bet with the kinds of things they want to offer.
  • We spent a lot of time talking about what incumbents are doing better. Comcast has done a particularly good job at offering local programming be it Sundance films, high school sports or LDS General Conference. Qwest can push ubiquity and bundling as key selling points. As regular commenter Capt. Video has often stated, UTOPIA needs to do more to offer products and services that differentiate themselves. Currently, video offerings are very… vanilla. I hope that will improve as new providers with different services jump on.
  • UTOPIA is apparently reworking the transport fees as part of the reorganization. This will probably result in terms much more amenable to service providers. In the meeting, it was brought up that one service provider who expressed interest was asked to pay $500K just to get a seat at the table. Sounds like that is gone. Service providers who haven’t taken another look at UTOPIA lately should consider doing so.
  • XMission has had to delay their VoIP offerings until this fall. Part of the problem is the reworking of the transport fees. The other part was that the original plan was to buy services from Veracity, a plan that fell through when Broadweave stepped into the picture. They have since decided to run all of the phone switching in-house to avoid these external dependencies. You should expect the product to be rock-solid as a result, especially given XMission’s high level of technical competence.
  • We also talked wireless again, except this time in the context of it being used as a temporary measure to provide service until fiber can be run all of the way. I don’t think this is the best option because of the problems it introduces. First, you can’t deliver triple-play on wireless because of the bandwidth limitations. Second, you run the risk of signing up a lot of low-end customers that never upgrade to the fiber product. Third, it conflicts with the core mission to build a world-class fiber infrastructure to sell to service providers. Fourth, it creates a poor perception problem that UTOPIA is abandoning its mission to build fiber in favor of the quick buck. There are good points in favor such as signing up customers on a low-end product to generate immediate revenues and interest, but I don’t think it’s a good long-term strategy. I still think wireless has a place as a complementary rather than a foundation infrastructure.

I’m still waiting for final confirmation, but I believe we should be having the next regular meeting of U-CAN at the Central Branch of the Davis County Library in Layton on August 23 at noon. More details to follow.

Frontier Guarantees Mass Migration to UTOPIA in Tremonton with New 5GB Monthly Cap

Frontier Communications, the incumbent phone carrier in Tremonton, has decided to give UTOPIA a helping hand by implementing a 5GB monthly cap on all of their DSL customers to drive them into the arms of a competitor. By comparison, the lowest cap available from a UTOPIA provider is 20 times that at 100GB per month. When the service starts rolling out in September and October, I’m sure that UTOPIA will see a good number of signups from angry customers who don’t appreciate per-byte billing.

One of two possibilities exists: they arrogantly think they’re so much better that nobody will switch or don’t see how boneheaded a move this is. Either way, it highlights the need for a bit of competition in the marketplace.

Mstar Appoints New CEO

Mstar announced that they have appointed their former CFO, Stephen Russo, as the new CEO of the company. According to the press release, former CEO Ben Gould still serves on the board in an advisory capacity. The press release is typical fluff and doesn’t really do much to quell rumours that Mstar is planning to scale back operations drastically.

The real question is if this new leader can right the ship or if it’s just the latest step in what appears to be a downward spiral. Only time will tell.

UTOPIA Posts Another New RFP

Rolling stones gather no moss and UTOPIA is barrelling down the hill. There’s a new RFP up on their website looking for fiber splicing and testing to tentatively begin in August. The RFP closes on August 1, so it looks like they’re sticking to an aggressive expansion strategy. Good news for those of you staring at dark fiber in your town!