Seven months later, Qwest has not challenged the legality of the loan, but the company maintains the use of public money to compete against private companies is unfair.

Qwest spokesman Gary Younger criticized the $2.1 million line of credit on Tuesday.

"The fact that the city is loaning taxpayer dollars yet again to this network is evidence of its questionable economic plan," Younger said. "Qwest welcomes competition, but competition should come on a level playing field. It is not the proper role of government to compete against private industry, using taxpayer dollars."

Mayor Lewis Billings repeatedly has said Qwest and other companies waited too long to provide the services he believed the city needed, so Provo sold $39.5 million in bonds to finance iProvo.

Provo's energy department has a multimillion-dollar surplus. The intracity loans to iProvo make the payments on the bonds.

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E-mail: twalch@desnews.com