From Deseret News archives:
UTOPIA may face tough test
It fears private industry may slash its service fees
Officials with the Utah Telecommunication Open Infrastructure Agency said Monday they expect funding for the first phase of the fiber-optic data network to come through as early as late July or August, if things go as planned.
However, the director for UTOPIA said officials worry private industry might try to stamp out the fledgling network by lowering services fees to ridiculous levels if the location of the first test network is disclosed.
"I'm sure it's not going to be a secret," said UTOPIA executive director Paul Morris, who said it will be difficult to hide the work from companies such as Comcast and Qwest. Yet Morris doesn't know if UTOPIA wants to make it any easier for them by announcing which city will be host to the first UTOPIA network.
UTOPIA is touted as a data network that will be fast enough to offer telephone, Internet and television services in one high-speed connection. Although the network infrastructure will be managed by a quasi-governmental entity, private service providers such as AT&T will compete on the network by leasing into the system.
The first part of UTOPIA's implementation plan is to build a $25 million test network that will serve between 2,000 and 3,000 customers. But in order for the test network to get off the ground, it will require willing, paying customers. Morris said there's a fear that once private telecommunications companies find out, they will simply cut their prices in that city.
When asked if that is something his company would do, Qwest spokesman Vince Hancock said, "We can't disclose what we might do due to the competitive nature."
Hancock added that unfair pricing would be something the Utah Public Service Commission wouldn't look kindly upon.
On Monday, the UTOPIA Board of Directors approved the final interlocal agreement, which will commit UTOPIA cities for the next 50 years. The agreement also protects member cities, Morris said, by shielding them from legal liability.
The $340 million broadband fiber network, which is expected to service 11 financially committed cities, will be funded through bonds taken out by UTOPIA and backed by a set amount of sales tax dollars. Morris said the bonds are UTOPIA's debt and that under the interlocal agreement, cities would not be held legally liable if the network fails.
"It isn't their debt on their backs," Morris said. "It's UTOPIA's."
Comments
- SUU museum to honor local artists 6:38 p.m.
- Sub. teacher charged with sex abuse 6:33 p.m.
- Doctor calls Mitchell 'naive,' 'inept' 6:16 p.m.
- Photos: Warming soles 6:10 p.m.
- Eagles, Reid agree to extension 5:52 p.m.
- Ashanti's mom gets lewd messages 5:49 p.m.
- Corbin Bleu to join 'In the Heights' 5:48 p.m.
- Hollywood breaks revenue record 5:47 p.m.
- 'Biggest Loser' sheds 239 pounds 5:46 p.m.
- Strong heading to Louisville 5:42 p.m.
- Hot Rod behind mic for Lakers
- Cougars use depth to beat ASU
- Max Hall wants to look ahead
- Non-BCS schools not given fair shot
- Panel passes BCS playoff bill
- Snow brings big chill
- Doctor calls Mitchell 'naive,' 'inept'
- Palin signs books, chats with fans
- Small plane crashes near Lehi
- Jazz go up against 'the best'
- Y. profs: Beck not all-knowing
291 - Letters: Global warming a lie
228 - TCU to play Boise in Fiesta Bowl
206 - BYU football: Bronco weighs in on Hall
178 - Cougars going back to Vegas
150 - Utah/BYU rivalry can be more civil
145 - Andersen apologizes for Jordan hoax
136 - George lost in rivalry hatefest
121 - Max Hall wants to look ahead
113 - Ed Smart 'appalled' at testimony
100
Love him or hate him, Utah Sen. Orrin Hatch knows how to get attention.
My wife Lisa and I would prefer never to argue. But that's not going to...
For the latest news in the health care debate and how it affects you...
1) Did the Flash win? 2) Did Bryon Russell beat the MJ imposter?
So between Lehi Main and the where the freeway is five lanes in South Salt...
Max is my spokesman....! 'nuff said.
The last thing we need is the government rearing it's ugly head in matters it...
What makes you an authority on deciding what some else knows or who is an...
Max Hall will be selling cell phones in a mall Kiosk in the near future
The guy who takes over a half time is much better than Locke. Locke just...
What a bunch of pseudo-intellectual hogwash, it was all pure ad homoninen...
The idea that the top BCS schools maintain a monetary advantage over...
For the love of Pete!!! Why did the D-News publish this article?!



You can be the first to comment on this story.