The city sought new service providers earlier this year. It has identified three it will consider adding in the next few weeks. Five others have expressed interest since Provo began looking.

"The two or three existing providers would prefer we not add additional competition," Garlick said, "but we've made clear to them that is the concept behind an open-access (iProvo) network."

Some of the potential new service provider partners would bring their customers with them to the iProvo network, instantly creating new subscribers and revenue for the city.

The competition could drive down costs for iProvo subscribers while improving customer service. Subscription costs also could fall if city departments pay more of the freight.

"It's unfair to have residents subsidize city departments who are benefiting from iProvo," Billings said.

The review includes the creation of a large number of committees looking for ways to increase revenues and the number of subscribers while cutting costs. A cost review and reduction committee, for example, is meeting twice a week and is considering every option, including selling some assets, Provo finance director John Borget said.

New revenue could come from a vast number of new products that could be offered to city departments over iProvo, several city presenters said during the summit. For example, the Energy Department is considering adding a remote, automated meter reading system. The city could then gather utility-use information without the need for meter readers. It could also connect and disconnect utilities remotely over the iProvo network.

Members of the City Council and the telecommunications board were most intrigued Monday by the possibility of iProvo providing an online way for utility customers to track how much energy they are using.

The consultants hired by Provo are CCG, a Maryland company with multiple city and county broadband clients, and Colorado company Franklin Court Partners, which works with telecom service providers. Both represent what Billings called "expert, independent review," and Garlick said their reports could be done by just before Christmas.

Until and unless the consultants and committees provide meaningful changes that stop the hemorrhaging, the City Council must begin to prepare to cover the new shortfalls that, if they continue at this rate for the rest of the fiscal year, would total about $850,000, not including the $1.2 million already budgeted.

The continued bleeding drew another rebuke from the Utah Taxpayers Association, which has opposed iProvo from the start.

"This is further evidence that cities shouldn't be in the business of business," association vice president Royce Van Tassell said. "Municipal telecommunications systems end up this way. I hope Provo will recognize this and get out of the business."

Billings said the city launched iProvo because companies wouldn't provide similar services in Provo.

"We do have some alternatives where this can be an incredible piece of infrastructure for this community," he said.

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E-mail: twalch@desnews.com