iProvo sale right next step in future of city's broadband

Published: Sunday, May 11, 2008 12:46 a.m. MDT
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When I first decided to run for Provo mayor, one of the key points in my platform was that I would seek to use technology to improve and better the lives of Provo residents. Upon being elected, city leaders sought to define how best to utilize technology in our community, and it was quickly obvious Provo would be substantially limited in its choices without a true, city-wide broadband network. The city approached the five existing telecommunication companies in our city at that time. None were willing to step up to provide such a network.

I came to government from the private sector. I strongly dislike taxes in every form and feel that smaller government is better. But I also believe when a community has determined a need the private sector is unwilling to fulfill, it can be an appropriate role for government to step up and do what the private sector is unwilling to do.

After a very lengthy and deliberative study process that included resident review committees, Municipal Council hearings, neighborhood meetings and more our city made the decision to build a city-wide, next-generation, ultra-bandwidth telecommunications network, thereby connecting Provo residents and businesses to the information superhighway. While the city provided the network infrastructure and connectivity, private companies were to offer services on the network.

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In looking back, that was clearly a very bold and pioneering effort, a truly challenging project with many ups and downs. Certainly not a course for the faint of heart. The city had had to deal with a constant barrage of political and public relations challenges from competitors and those who for one reason or another were opposed to Provo undertaking this important project. The wholesale model imposed on the city by the Utah state Legislature also presented substantial hurdles. Provo also encountered all of the problems associated with bringing to life any large-scale utility.

Today, iProvo is the largest, fully-built-out, municipally-owned fiber-to-the-premises network in the United States, reaching all 36,000 residences and business within the city. This network provides connectivity to homes, businesses, government buildings, schools, traffic signals and a host of other uses at speeds up to 1,000 times faster than cable or DSL.

In April 2007, Provo city issued a request for proposals inviting private companies to assess their interest in the iProvo network. Several companies responded with proposals to acquire all or part of the network. The company that responded with the best proposal was Broadweave Networks.

Broadweave currently owns and operates other Ethernet networks in Utah that are very similar to Provo's. The Broadweave management team is literally a who's who of technology and management in Utah, providing the right mix of proven business experience as well as practical hands-on experience in technology management. It also has access to capital. The Broadweave offer of $40.6 million is sufficient to reimburse the city for virtually all of the capital costs associated with building the network. The city will retain access to the network for delivering city services to homes (electric meter reading, emergency notification, demand side and load management, etc.) thus creating a long-term benefit that will more than offset any operational losses of the past.

Recent comments

Prior to moving from Northern Virginia to Provo in April 2005, I...

Twillie | May 18, 2008 at 7:24 p.m.

All along, the mayor has vehemently defended the iProvo model and...

Mark | May 12, 2008 at 11:37 p.m.

Mayor, Mayor, Mayor -- You pulled a fast one and sold us out. You...

Current Provoan | May 11, 2008 at 10:29 p.m.