From Deseret News archives:

Experts say UTOPIA probably would fail

Business model is shaky at best, 2 analysts say

Published: Thursday, June 10, 2004 10:45 p.m. MDT
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Both sides say it's a relatively new movement across the country, with most networks being between 2 and 4 years old.

However, Gifford said the problem with city-backed networks is more fundamental. Government-run networks lack the drive for improvement and innovation that private companies have in a competing market.

"UTOPIA ignores human nature and human issues," Gifford said.

Mike Jerman, vice president with Utah Taxpayers Association said the uncertainty alone should indicate the risk in using tax dollars to back the network. Instead, Jerman offered an alternative plan to UTOPIA.

Arguing that UTOPIA would not pay sales tax for equipment purchases, Jerman said that tax loss to the state should instead be passed on to private companies in the form of a tax break to allow them to build their own network.


E-mail: gfattah@desnews.com

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