From Deseret News archives:

iProvo sale called bad, good deal

Published: Friday, May 9, 2008 12:27 a.m. MDT
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• Broadweave will almost certainly focus on providing the benefits of the network to more business customers.

• To date, iProvo has been subsidized through utility loans and transfers of taxes. Citizens will benefit from the sale because it maintains the current network while removing any chance of future subsidies to cover losses.

But Jesse Harris, a software implementer who writes about the UTOPIA and iProvo discussions on www.freeutopia.com, said he is not sure the iProvo sale is all it's trumped up to be. For one thing, he said, Broadweave isn't actually buying the network.

"It's kind of like someone saying, 'Sign me over the title of your car, and I'll lend you the money to make the payments,"' he said. "It's ridiculous."

Harris also questions Broadweave's ability to increase its subscriber base. Broadweave CEO Steve Christensen said the company has 1,000 customers, but they're sure they can handle iProvo's network which boasts about 10,400 subscribers. But Harris doesn't agree.

"I think they're going to stumble for a few years and then say, 'Guess we can't do it, good luck with the bond payments, Provo,"' he said.

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Harris said he thinks the city should stick it out with iProvo and "do the grunt work necessary to make it succeed" instead of selling.

"I hope the good citizens of Provo will remember this betrayal at the ballot box in 2009," he wrote on his Web site.

Provo spokeswoman Helen Anderson said Broadweave has all the signs of longevity. Broadweave is well funded by Sorenson Capital and Esnet Group, and Sorenson Capital is backing the payments by providing a guarantee

Mayor Lewis Billings said he appreciated Harris' passion but said he remains optimistic on the outcome of the situation.

"We certainly appreciate Mr. Harris' opinions, but we would hope our residents would take the time to become informed and to carefully evaluate this proposal based on a careful review of the facts and after actually talking with the players involved," he said.


E-mail: jdana@desnews.com

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