Category Archives: UTOPIA

Steve Turley Blows Smoke on iProvo and UTOPIA

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Long-time readers of this blog (or those paying attention to iProvo) will recognize the name of Steve Turley. As a member of Provo’s municipal council, he’s been a consistent voice of opposition on all things iProvo since as far back as anyone can remember. You may even recall the recent series of articles in the Daily Herald bringing light to some shady-looking real estate deals and resulting lawsuits that he’s involved in. If you want to start iin the real estate industry I suggest using a commercial bridge loan to get financial help and get information to learn the business like this nick vertucci real estate academy review. I Today, he had an op-ed in the Deseret News calling on UTOPIA cities to follow Provo’s lead and dump their fiber network. Unfortunately, it would appear that Councilman Turley is about as knowledgeable as he appears ethical. Although there’s people that doesn’t have that much interest in the real estate, but actually just want to sell their house, for those people there we have business like needtosellmyhouse.com where we we buy houses from all nation and they can also just get help from sites like Flipping Junkie online, which is an easy way to sell or buy your house without doing all the work.

The biggest surprise is that Turley claimed the sale of iProvo is a success, this in spite of voting against both the sale to Broadweave and Veracity’s subsequent takeover of Broadweave. I have a hard time swallowing Turley’s characterization given that Broadweave spent sixteen months doing a terrible job at running the network (just like I said they would) before Veracity stepped in to save their hide. Even so, Provo had to loan out more money to Veracity to make the deal work. Veracity has done a superb job at turning around operations, but they have also had to cross-subsidize the network from their other operations and may continue to do so for several years. The reality is that this is the best the council could come up with since they did not have the stomach to do what was necessary to run the network successfully as a city department. It is absolutely absurd that Turley thinks he could vote against these outcomes and still be able to claim responsibility for them.

There’s also the wildly inaccurate claim that Provo solicited bids to buy the network. That’s absolutely and patently false. (I’d go so far as to call it utter bulls–t, much like the rest of his arguments.) The sale of the network came as a total surprise to the general public, service providers, industry watchers, and even the entire municipal council. The Mayor himself, the architect of the Broadweave deal, was adamant that a sale wasn’t on the table up until a couple of months before unveiling it. This was during the time that Billings and Broadweave were busy negotiating the terms of the deal. There was no clear RFP for bids, no public bidding process, and a very short period in which to review the terms of the deal. Does that sound like hanging a “For Sale” sign to you. I recommend Ball realty which is a pacific pines real estate agency on the gold coast, you can call them for assistance.

Turley has also wildly distorted the cost of building iProvo. Most of the main fiber optic rings were built many years before iProvo was even proposed. (I’d say planned, but I’m sure Mayor Billings knew what he was doing the whole time.) Those rings were paid for with federal grants so that the city could monitor traffic and improve air quality. That backbone certainly didn’t come cheap and should be included in the cost of expanding the network to include service to city residents. The $39M figure also does not include the shared cost of the video headend built jointly with UTOPIA. These items could easily add $10M or more to the total cost of the network, something that Turley has intentionally chosen to ignore.

Of course, these are just the factual problems with what he has written; I haven’t even made it to his faulty conclusions yet. Based on the “evidence” Steve Turley has presented, he thinks that UTOPIA cities should follow Provo’s lead and find a private company to buy the network. Unfortunately, that’s ignoring the marketable reality of the network. iProvo is a fully-built network covering an entire municipality. By the last publicly available figures, the network should have had little trouble being self-sufficient with some modest increases in take rates and small rate increases (not to mention better accounting practices). That makes it a very attractive target for acquisition, especially since the network was ready to roll.

UTOPIA, on the other hand, has patchy coverage and needs a lot of significant investment to cover its intended service areas. It’s main asset is the fiber running from Portland to Las Vegas, but even that isn’t valued at enough to pay off the current debts. UTOPIA cities, if they sold today, would still be making most of the payments and getting nothing in return for it. Provo, on the other hand, got someone else to assume the full debt load while walking away from it. Do these sound like similar situations to you? Me neither.

He also characterizes the new $60M bond proposal as additional system debt, just like the Utah “Taxpayers” Association has been doing. This, again, flies in the face of reality. The entirety of the $60M bond would be paid for by system subscribers, not the cities or UTOPIA. Claiming that signing on to this plan creates an additional burden systemwide is uninformed drivel.

In summation, Steve Turley knows about as much about municipal broadband now as he did two years ago. Unfortunately, that knowledge wouldn’t fill a thimble. Councilman, do us all a favor and go back to your home planet. Maybe they’ll be more accepting of your Reality Distortion Field.

Want the fastest broadband in Utah? Brigham City has you covered

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Ookla, the company responsible for running Speedtest.net, has recently released new results on the state of broadband speeds around the world and Brigham City has taken the top spot in Utah by a wide margin. Their average speed of 20.59Mbps handily bests second-place Pleasant Grove by almost 60%. Considering that over a third of the city accesses the Internet using a UTOPIA service provider, this doesn’t come as much of a surprise; almost all of the increase has been in the somewhat recent future. Neither is it surprising that two of the top three ISPs (as ranked by speed) are UTOPIA providers Xmission and Integra Telecom.

I think the moral of the story is crystal clear: if you want top-notch Internet service, get UTOPIA.

Payson Bunts, Delays Voting on Joining the UIA

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Unsurprisingly, Payson is hand-wringing over joining the new Utah Infrastruture Agency over financial concerns. On Wednesday, the city council opted to put off making a decision until August 4 as they worried openly both about the cost and how much say they would have in the new agency. Payson is about 30% connected and city leaders feel like if they don’t join, they won’t see any new construction.

And really, that’s true. The UTOPIA money well is empty and until the system is operating in the black, there will be nothing with which to build. The UIA is an attempt to solve this lack of capital while not putting the cities themselves on the hook for more money. Given the tone that Payson is using, it sounds to me like they either don’t understand the proposal before them or are operating purely on deer-in-headlights fear.

It’s not surprising to see that Payson’s city council members haven’t developed any new intestinal fortitude since they tucked tail and made a calculated vote against the new bond two years ago. I personally feel like they’re repeating the mistakes of American Fork, jumping in with a lot of initial enthusiasm and not having the wherewithal to see the vision through. Any elected official who operates with that kind of short-sighted eye towards instant gratification can’t be counted on in tough times. To be blunt, they’re cowards, afraid to do what is necessary and acting in shameless self-interest.

Grow a pair already, Payson. I’m sure you’re wearing thin on the rest of the cities too.

Bye Bye, Deadbeat Providers

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One of the more interesting parts of UTOPIA’s new plans via the Utah Infrastructure Agency (UIA) is to have cities start taking over billing operations directly. In the past, service providers operated all of the billing and then remitted payment to UTOPIA for the wholesale transport. That arrangement works well for most providers, but every now and again, you get an Mstar that racks up a huge debt to UTOPIA. While the step to diversify the video offerings so that no provider can hold triple-play over their head, it only gives UTOPIA a hammer to cut off the deadbeats, not a way to get their money. So, in an effort to make sure that UTOPIA always gets their cut and isn’t giving any provider a free loan, it looks like they’re going to consolidate billing into the UIA which will then disburse the money to both UTOPIA and the service providers.

I have some mixed feelings on this. Sure, it sucks when a crappy company like Mstar takes the network for a multi-million dollar ride. And it would suck if a company decided to not pay their bills for a month or two and leave UTOPIA holding the bag. I can certainly see how this improves the cash flow on their side. On the other side, billing is a way for providers to differentiate their customer service. I know a lot of people who have sworn off Qwest because their bill couldn’t ever come out quite right. I also wonder if providers will be hot on the idea of a third-party provider collecting the money and delaying the cash flow on their side. It also raises the issue of what happens when there’s non-payment by the customer. Instead of the provider having to pay UTOPIA anyway while they seek payment (or, more likely, shut off service), UTOPIA is left holding that bag. Granted, it’s a lot less than if a provider stops paying their bills, but it’s something worth thinking about.

In any event, this seems like an overall positive move with a few caveats. If nothing else, UTOPIA is working its tail off to try and protect itself from these kinds of financial problems.

Rally Fail: UTOPIA Hijacks Utah Taxpayers Association Event

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The Utah “Taxpayers” Association thought it would get an upper hand with a BBQ in Orem just before the city council voted on a new construction bond. Unfortunately for them, the plan backfired when UTOPIA made a surprise appearance at the event with their “mobile command center” and started actually talking directly with the meeting attendees, many of whom had no opinion of UTOPIA yet and came to get more information. According to my sources, about half of the 250 or so attendees ended up registering their interest in UTOPIA services, a major coup for the network that upstaged their most vocal opponent.

Apparently what convinced a lot of the undecideds was the UTA’s refusal to disclose who pays their bills. That lack of transparency translated directly into looking like they have something to hide (hint: it’s Qwest and Comcast dollars) and left many looking at their fantastic claims skeptically. I’d like to say that there were some talking points to address, but an eyewitness account called it so much kool-aid drinking, a series of incomprehensible rants filled with insinuation, innuendo, insults, and no concrete addressable facts. In contrast, UTOPIA discussed their new business plan with individual residents and offered demonstrations of how well the service can work. Truth has power and it wasn’t on the UTA’s side.

In attendance were Rep. Mike Morley, UTA VP Royce Van Tassell, UTA President Sen. Howard Stephenson, Rep. Steve Sandstrom, and Sen. Margaret Dayton (who did not speak). UTOPIA openly challenged both Stephenson and Van Tassell to provide outside oversight of their plan, an offer which they declined to accept. Considering that the UTA regularly chides UTOPIA for mismanagement and secrecy, I would think they’d jump at the chance to look at things from the inside. If nothing else, they could fabricate some juicy new attacks from half-truths. This says a lot about the true motivations of the Utah “Taxpayers” Association. If they really wanted to keep an eye on UTOPIA for the benefit of all taxpayers, why would they turn this down?

Please, UTA, consider holding more of these events. As many as you want. You come out looking like fools and UTOPIA gains even more customers and mindshare. I’ll even volunteer for the dunk tank.

Also, see coverage from the Deseret News and Daily Herald. Bonus: I’ve got about a paragraph in the Herald article.

As a side note, I saw it reported that the connections on the new plan will be $50/mo plus service, but I don’t know if that’s accruate and haven’t gotten a reply to an e-mail I sent Monday seeking clarification. It’s also unclear how much a service provider tacks on top of that if that is the case, though it had better be well south of $20/mo for Internet. You’ll know more when I do.

Utah Infrastructure Agency Moving Forward

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Remember UTOPIA’s new plan to shift the cost of the network from the cities onto subscribers? It’s been moving forward in the form of the Utah Infrastructure Agency, a way for cities to bond for construction without having to put taxpayers as a whole on the hook. So far, West Valley City, Lindon, Midvale, Layton, and Orem are on board with Perry and Tremonton deciding to sit it out. Other cities are still considering signing up for it and need to hear from you.

So what exactly does this do? In short, it’s the next evolution beyond the SAA used in Brigham City. The SAA model was to  find demand, form an SAA, and then get the funds to start construction. The UIA will, instead, get the money first, find the areas of demand, and then start construction once it becomes feasible. Just like the SAA, the subscribers that get hooked up under the arrangement will be the ones footing the bill. This speeds up the process of connecting customers while still continuing to shift the burden of supporting the network away from cities and onto those who get service.

To be quite honest, I can’t see why a city wouldn’t be all over this. There’s no cost to the cities to participate and increased subscribers will only decrease or eliminate the called pledges. Given the benefits to the taxpayer, that they are taken off the hook, you’d think the Utah “Taxpayers” Association would be all for it. (Fat chance, I know.) The good news is that any city that doesn’t elect to participate now can always reconsider in the future. If your city has already declined to join (or does so in the future), you can still pester them until they reconsider.

Note: While Orem was part of the founding group of the UIA, they haven’t taken an official vote on the matter yet. There will be a public hearing on Tuesday after which the Orem City Council will decide if they will join. They chose the new bond in a 6-0 vote last time around, but the UTA is holding their rally just before the meeting to try and pack the house with opponents and scare council members into reversing course. It’s very important that UTOPIA supporters turn out in force both at the rally and the meeting to thwart these efforts. I hear there’s going to be a fun surprise for the UTA during their BBQ, so show up and be prepared for a laugh at their expense.

Utah Taxpayers Association Holding an Anti-UTOPIA Rally

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Not content to pen astroturf editorials and send deceptive last-minute postcards, the Utah “Taxpayers” Association has plans to hold an anti-UTOPIA rally in Orem on July 13. The BBQ/carnival (heh) will be in Orem City Park, 300 E Center St, from 5-7PM. I’d encourage UTOPIA supporters to show up in a counter-protest to correct what will undoubtedly be a series of half-truths, hyperbole, and plain old-fashioned lying. And, unlike my challenge to a throw-down that went unanswered, they can’t exactly run away from you if you call them on it.

As always, be respectful and don’t act like a jerk. You aren’t going to win anyone over with an attitude. I’d like to be there myself, but I’ll be out of town on business.

Layton Mayor Curtis Takes Aim at the UTA

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Apparently I’m not the only one sick of the Utah “Taxpayers” Association and their constant vuvuzela-like drone. Layton Mayor Steve Curtis is getting sick of their spiel too.

Mayor Steve Curtis said UTOPIA, and the cities involved in it, have been transparent. “There isn’t anything we are doing behind closed doors,” he said.

The association has been opposed to UTOPIA from the beginning, Curtis said. “And if there is a way and means to stir the public, they go about it,” he said.

Curtis said he also disagrees with the association’s assumption that the public pledges being made available to the project are on the rise.

This is the kind of elected official needed in UTOPIA cities, just like Mayor Winder of West Valley City. It’s about time that the cities started sticking up for themselves and their decisions against the telecom guns-for-hire representing themselves as some kind of public advocate. You’re on notice, UTA: we’re all pretty sick of your lies.

Special Note: The UTA is still a bunch of cowards. They never responded to my challenge to a debate and refuse to respond on their Twitter account. Royce Van Tassell will also abandon any discussion thread on FaceBook about UTOPIA once I jump on. What a bunch of wusses.

Where's Nuvont?

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I used to have a contact at Nuvont, but he went unresponsive about a year ago leading me to think that maybe he’s no longer with the company. I figured the company went through some downsizing after the sale of their customers on iProvo, but this link that popped up in my Google Alerts doesn’t exactly bode well.

Now granted, this page doesn’t appear to be accessible from any link on the site, but its existence is disconcerting given how dreadfully quiet the company has been. Anyone from Nuvont want to chime in?

Catching Up

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Yes, I’ve been very quiet around here for the last few weeks despite some news happening regarding UTOPIA. The short version is that I spent two weeks in Boston getting hand surgery for my infant son plus a considerable amount of time getting prepped for that trip. (On a side note, Southwest rocks for still allowing two checked bags at no extra charge.) As passionate as I am about broadband policy, family pretty much trumps it all. So now I’m digging through about a month of e-mail, getting back in the habit of reading my feeds (I had to declare Google Reader bankruptcy, so I’m sure I’ve missed more than a few things), and getting back on my feet from being on the other side of the country. (If anyone wants to come mow my lawn, I won’t refuse.) This doesn’t mean I’ve been totally out-of-the-loop, just that I’m aware of the major happenings and not much else.

So UTOPIA picked up an award from the Broadband Properties Summit for getting things back on track. Good on them. This is positive recognition that management is getting the ship sailing in the right direction, even if there are treacherous seas still left to navigate. I’m not surprised that they had to ask the cities to float them some operating capital for a while, nor do I think any of them were caught unaware. The unexpected nature of the refinance two years ago I think had more effect on the cities’ anger than being asked for money. I’m also not surprised that, again, the UTA was spouting off the same nonsense they always do. It’s fatiguing to see them trotting out the same failed and rebutted arguments every single year, blind to any kind of reality of the situation.

I’d like to give a special shout out to Mayor Mike Winder of West Valley by showing some real leadership on UTOPIA. As part of the city council, he was consistent in voting against UTOPIA. Now he sees that the decision has been made, the financial commitments already made can’t be erased, and they need to make the best of the situation. No, UTOPIA is hardly in any kind of ideal situation. They can’t cover operating expenses right now, much less the bond payments. It kind of sucks for someone like me who’s such a big supporter. I think now is the time to ignore the commentary and just do the work. The people who hate UTOPIA will always hate UTOPIA and at this point, and nothing I say or do will change their minds. Heck, UTOPIA could deliver every pie-in-the-sky promise out there while making the cities run tax-free and someone (probably Howard Stephenson) would still find something to kvetch about. It’s not worth the effort to reason with or attempt to disprove people like that.

With the short runway for this month, I’m going to skip May’s podcast. If you’ve been sending me e-mail, I’ll get back to you soon. If you’ve noticed a lot of downtime with the site (and I have), I’m working on moving to another host because I just don’t have the time or will to manage a VPS setup anymore. I’m not going anywhere, nor am I giving up the fight. I just needed a break for a while.