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Fast, affordable Internet access for all.
The great missing debate in contemporary politics is about the role and reach of markets. Do we want a market economy, or a market society? What role should markets play in public life and personal relations?
A lot of cities have been talking property tax hikes lately, and the most certain thing about all of the proposals is that elected officials are going to look for someone or something to blame. In UTOPIA member cities, blaming the fiber network has become the easy go-to solution, especially since so many mayors and city council members weren’t involved in the original decision. The problem, however, is that this blame is completely paving over a deeper problem of city tax structure that’s boring, doesn’t fit the anti-UTOPIA narrative, and is a much larger problem for city budgets. Let’s take the examples of West Valley City, Orem, and Taylorsville, the latter of which is not a UTOPIA member city. In all three cases, they’ve called for large (as a percentage) property tax increases to make up for lagging sales tax revenues. So if UTOPIA is the cause of property tax increases, why would a non-member city need to more-or-less do the same thing?The discussion in the comments offer some additional news about UTOPIA's efforts to expand its subscriber-base by giving residents the option of "leasing" a last mile connection if they cannot afford to pay for it outright in areas where UTOPIA is presently not able to extend its network all the way to the home. Communities seeking alternative ways of financing networks that simply issuing lots of debt upfront should examine the different approaches UTOPIA has pioneered.
“We are partnering with DISH Network to provide more entertainment options to consumers through different mediums. DISH is at the forefront of recognizing that more and more people are changing the way they watch TV and that fewer of them are viewing their favorite programs on schedules determined by the content providers,” said Todd Marriott, Executive Director of UTOPIA. “DISH Network is one of the best content delivery companies out there, and we’re grateful to be doing business with them to offer content people want at a reasonable price.”Securing a major ISP to operate on the UTOPIA network is a big win in part because of the marketing potential. While many UTOPIA customers are happy with their ISP, the ISPs are limited in their capacity to advertise. As a national company, DISH may be well poised to bring a many new subscribers to the network. DISH also seems to be trying to get beyond just delivering TV channels. The discussion in the press release about sling-technologies suggest that DISH is concerned that its subscribers need better connectivity to the Internet to take full advantage of the technology DISH is offering them. Jesse has given this some thought at Free UTOPIA:
First, let’s consider that DISH already has a lot of customers in UTOPIA areas. They could immediately start marketing both data and voice service to those subscribers. Given that they can cross-subsidize using revenues from other markets, using the MStar tactic of aggressive marketing would be sustainable. They also have installation and customer service staff in place to handle that influx. That cross-subsidy can also help them pick up new customers on a triple-play package. One of the main barriers to signing up new customers has been the acquisition cost. DISH could potentially opt to subsidize or entirely eat the install cost as a way of speeding up deployment, something they have the cash to do.
The golden ray of sunshine in the report is a jump in total revenues of 98.7% over the prior year while expenditures dropped 7.2%. (The UTA chose to focus on just operating revenues and omitted the information about dropping costs.) Saying that this is a huge improvement is an understatement, especially when this doesn’t include any of the new UIA subscribers in the mix. While there was a small drop in total subscribers (a net loss of 210 thanks to the Prime Time meltdown), the period from July 1 to December 31 netted an additional 1400 subscribers via the UIA. This isn’t included in the audit report since 1) the audit report covers the period from June 30 2010 to June 30 2011 and 2) all new residential subscribers are being brought on via the UIA and will be included in a separate audit report beginning next year. ... So the short of it is that UTOPIA has posted huge increases in revenues, a modest decrease in expenditures, and it well on-track to sign up thousands of new customers by the time their current fiscal year closes. If that’s not success, I don’t know what is.
Most of you are already aware that Veracity’s reserve fund for iProvo has reached the point of potentially triggering a default. From the news stories you’ve read, odds are good that you think that Broadweave 2.0 is about to come crashing down on the city. I’ve sat down with Veracity and Mayor Curtis to get the real deal story and I don’t think it’s the apocalyptic scenario that sells papers and glues eyeballs to evening newscasts.Read the full article to get a better sense of what options Provo has. Update: Thanks to reader Jeff for providing some additional links with information about iProvo. Video from a recent iProvo meeting and a blog post on the latest from iProvo.
“We’d love to have it,” said Cris Hogan, executive vice president of Hogan & Associates Construction in Centerville. “It’s much faster, with more capabilities, and we’re hoping less expense.” As a commercial builder, Hogan’s company frequently transfers detailed documents and plans to subcontractors electronically. Under current bandwidth conditions, that process can be time consuming, he said. Hogan’s wait for screaming-fast Internet could soon be over. “No one in Centerville has Utopia right now but they’re getting close with the stimulus,” said Blaine Lutz, the city’s finance director. His workplace, Centerville City Hall, should be hooked up by October.The current expansion will connect 141 anchor institutions in the two communities as well as many more in Payson, Orem, Murray, Midvale, West Valley City, and Perry. As of now, residents generally have to pay a steep upfront $3,000 connection fee for the physical connection, but local governments are investigating different options to allow residents to connect to the network affordably, as Brigham City did with a special assessment area. As for the capacity of the network and value offering, it crushes Comcast.
UTOPIA trucks have started working in Centerville this week, putting in hub and connector points that will help bring the long-planned fiber optic network to public institutions in the city. Though this will also lay the groundwork for bringing the network to residents, the current phase of construction is covered by grant money that only involves government institutions. Construction on residential connections won’t begin until sometime this summer.Centerville has been stuck with considerably less reliable wireless connections that do not offer anywhere near the capacity of fiber-optic cables. The network will go beyond the typical anchor institutions (e.g. City Hall, muni buildings, and often schools) to connect traffic lights as well -- an increasingly common approach. After this phase, UTOPIA will begin expanding residential connections -- but they will prioritize areas that show the most interest in taking services.
Before the summer construction begins, residents should expect to see an information and advertising push explaining the different companies offering services on the UTOPIA network and seeking those wishing to sign up for the services (though UTOPIA and the UIA maintain the network, they offer no services. Outside companies, such as XMission, use the network for their services). Placing the advertising before the construction will determine whether or not there’s enough demand to justify the expense of laying in the network in a given area.UTOPIA continues to impress even past critics with its new management and approach.
Utah can lead the way in this digital future, and the cities of UTOPIA are proud to be part of the cutting-edge solution. We are building this network not as a money-making operation, although our financial situation improves as our subscriber base grows. We are building this network for the same reason local governments built highways in the 19th century and airports in the 20th century: This infrastructure will be what connects our 21st century world.