Thing’s have been looking up for the Utah Telecommunications Open Infrastructure Agency’s fiber optic network (UTOPIA) in recent years and in December network officials reported they’ve reached a significant financial milestone. For the first time since the open access network began operations in 2003, revenue will cover bond payments and will provide a 2 percent dividend to most of the member communities.
Despite The Limitations
In keeping with state restrictions, UTOPIA can only provide wholesale services via their fiber infrastructure. Ten ISPs offer residential services on the network, which establishes ample competition and all its benefits for subscribers, including lower prices, better customer service, and the ability to switch providers. Businesses can choose from 25 ISPs.
The wholesale-only model, however, significantly reduces the revenue communities can expect from their investment, which was the case with UTOPIA. The eleven member cities bonded approximately $185 million, but revenue limits due to the restriction, some early management decisions, and general apprehension from member communities, created political controversy. At one point, member communities considered selling out to Australian investment firm Macquarie.
Fortitude Paying Off
In 2011, eight of the member communities created the Utopia Infrastructure Agency (UIA) in order to spur more network expansion. UIA collaborates with UTOPIA as a separate entity; its purpose is to deploy the network in more locations and connect more premises and has issued the dividend to its member communities.
Communities in the region chose to stick with their investment, however, and gradually, as Jesse Harris from FreeUTOPIA noted in 2016, negative public opinion turned around. Things for the eleven member communities were on an upward trajectory and soon neighboring...Read more