From Deseret News archives:
Experts say UTOPIA probably would fail
Business model is shaky at best, 2 analysts say
The two experts, one the former chairman of the Colorado Public Utilities Commission, were brought in by Qwest to analyze UTOPIA's business model during a press conference Wednesday.
The counterstrike to UTOPIA's claim that their system will be solvent and profitable comes just one week before 11 UTOPIA member cities will hold public hearings to vote on an interlocal agreement that will commit their cities to the project for the next 20 to possibly 50 years.
The Utah Telecommunications Open Infrastructure Agency is a project formed by several Utah cities to build an ultra-high-speed fiber-optic data network to provide Utah residents and businesses with telephone, data and video in one connection. Although the network promises to offer speeds up to 10 times faster than what current companies offer, the $340 million project is backed by millions in city sales tax revenue, which member cities stand to lose if the network fails.
William Fitzsimmons said he was hired by Qwest to evaluate UTOPIA's business model.
"It cannot deliver on what it promises," Fitzsimmons said.
Fitzsimmons, who says he has 20 years' experience in the telecommunications industry, has serious doubts that UTOPIA will be able to woo 40 percent of the market, particularly because Qwest and Comcast would be expected to put up a fight for customers.
"What you have is this field of dreams scenario, that if you build it, they will come," said Raymond Gifford with the Washington, D.C., think tank, The Progress and Freedom Foundation. Gifford is also the former chairman for the Colorado Public Utilities Commission. Gifford said UTOPIA is poised to join many other municipal-backed telecommunications networks that are struggling.
Citing city-backed networks in Virginia, Pennsylvania and Oregon, Gifford said other municipal networks are requiring public subsidy to keep afloat. In some cases, Gifford said cities have pushed back estimates to as far as nine years before their network is expected to be self-sustaining.
"I called these communities. The feedback I got was very different," Black said. "The report doesn't even remotely represent the facts on the ground."
Comments
- Boozer on an offensive tear 11:20 p.m.
- Visions linger from 'Nutcracker' 11:18 p.m.
- Snow hopes to snap bowl game skid 11:16 p.m.
- Ax pays brilliant tribute to pair 11:15 p.m.
- Griz bounce back to swamp Reign 11:12 p.m.
- SLCC men throttle Eastern Wyoming 11:12 p.m.
- Photo: Climate meeting on high 11:06 p.m.
- Mathews helps play some defense 11:06 p.m.
- Russia, U.S. to honor treaty 11:05 p.m.
- Philippines arrests clan leader 11:05 p.m.
- Mr. Football 2009: Tuni Kanuch
- Ed Smart 'appalled' at testimony
- 5A high school football All-State
- Miller predicted Tiger's rough road
- Utah Jazz going green with unis
- 4A high school football: All-State
- Harpring's NBA career is over
- Nutty Putty Cave to be sealed today
- MVPs wrap up stellar prep careers
- Jazz: Miles, Kirilenko to play Friday
- Hall reprimanded by MWC
409 - Why is Y. ignoring spew of hatred?
293 - BYU says Hall incident resolved
247 - Letters: Liberal because LDS
236 - 2 citations issued at Y.-U. game
189 - Hate not limited to 1 in-state rivalry
184 - Aggies shoot past Cougars
179 - Religion in politics is tiresome
159 - N.Y. Senate rejects gay marriage
118 - Max Hall: a fixture in rivalry lore
117
Trolley Square's annual Holiday Open House will feature visits with...
That does it — I'm having an affair! Thanks to Tiger Woods, David...
First, a big thank you to all who posted questions here for me to ask...
Total strawman argument. I have no doubt that John would have wanted people...
We wish you well Louis! Thanks for all of the wonderful things you've done...
I agree.. He had that deer in headlights look. He is in a tough spot....
Jared, come on, Wikipedia? Are you serious? Be a journalist. If this was a...
THIS GREAT ! I HAVE SEEN THEM DANCE SEVERAL TIMES AND HAVE ENJOYED THEM...
Did the Utah defensive line hit Max as hard as BYU defensive line creamed...
There isn't a single organization that's free of a few people who exibit poor...
I was there with Shanae, and I honestly have to say that she was the youngest...
i can't think of any extreme government models that haven't failed. Communism...
And Utah still lost 26-23. HA!



You can be the first to comment on this story.