From Deseret News archives:

10 of 11 cities OK $181 million UTOPIA refinance

Published: Tuesday, May 6, 2008 12:19 a.m. MDT
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UTOPIA will be issuing monthly reports to elected officials in affected cities, general counsel Dave Shaw told the Murray City Council.

Opponents of the refinance say the problems should have been expected. UTOPIA should try to sell, they have said. A vast majority of speakers in public hearings have been against the refinance.

UTOPIA's answer has been that its infrastructure is not worth selling. The project will dramatically increase in value after it is complete, so the refinance is a good investment even if UTOPIA eventually fails, they have said.

The Utah Taxpayers Association, long opposed to UTOPIA, calls that a scare tactic.

Refinance opponents have also said that municipalities have no place competing with the private sector. Such companies as Qwest and Comcast have years of experience and high incentive to be efficient, they say.

In contrast, UTOPIA proponents believe the municipal system allows for greater private-sector competition. They have compared the fiber-optics network to an airport or highway, used by all but built by governments. Users of the system sing its praises, saying they will never go back. UTOPIA threatens, but doesn't compete with, incumbent telecommunications providers, said UTOPIA advertising consultant Chris Hogan.

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Other concerns raised during the public hearings were specific to the cities. They included the possibility of changes to state sales tax allocation and the ability of residents to afford the system, among other things.

A majority of proponents in public hearings have been private users, young telecommunications professionals and business owners connected through fiber. The United States is falling behind internationally in telecommunications, they say.

UTOPIA is placing high hopes on an advertisement campaign that will educate the Wasatch Front about fiber. Beginning June 1, the ads will explain how the open system works, said Hogan, who created the plan.

UTOPIA has proposed a new executive director, but is waiting to make announcements until the board votes on the issue.

"I have come to believe that going forward is the lesser of two evils at this time," said Murray City Council member Jim Brass.


E-mail: RPalmer@desnews.com

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