UTOPIA coming soon to 18 cities

UTOPIA solves the restriction barrier by serving as a wholesaler — the network will be open and available to many service providers. Provo plans to deploy a similar fiber-to-home network soon, city spokesman Mike Mower said.

The ambitious project does come with a hefty price tag — $470 million. Morris said UTOPIA would spend about $1,100 a home to run the fiber network past each house in the 18 cities involved, and an additional $1,400 for each home that decides to connect.

The project will be funded by the sale of bonds. Morris said he is arranging financing from a New York investment bank. Cities will be asked to guarantee a portion of the loan, but that figure has still not been settled, Morris said.

Such a guarantee could drop UTOPIA's interest rate by half, but it also puts those cities at risk should the project fail to meet expectations.

"This network can pay for itself," Morris said. "I see it as a minimal risk to the potential upgrade for that community."

Salt Lake City officials said the degree of financial risk will be a key part in the city's decision to guarantee a portion of the bond issuance.

A study by DynamicCity in Lindon predicted that 40 percent of consumers and residents would sign up within two years. The project likely will generate enough revenue by its seventh year in operation to cover all expenses, the study estimated.

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Contributing: New York Times News Service

E-MAIL: ldethman@desnews.com