From Deseret News archives:
Provo Cable to be sold
Company that will run iProvo network is buyer
The Video Internet Broadcast-
ing Corp. — also known as VIB TV — announced Thursday the company has entered a memorandum of understanding with Provo to purchase its cable company by the end of this month.
The company and the city forged a management agreement in February, less than a month after the Provo City Council approved a $39.5 million bond to finance iProvo, a citywide fiber optic system that, if built to plans, would provide high-speed Internet and advanced cable television and telephone services.
But VIB TV wants ownership.
"We are in the process of purchasing Provo Cable," confirmed Bob Murtagh, chief operations officer for VIB TV. "The negotiations process with the city is now winding down."
The city actually selected VIB TV, based out of Ephrata, Wash., as iProvo's first service provider in August 2003.
"They have a lot of enthusiasm and the perfect background and are raring to go," said Mary DeLaMare-Schaefer, who has overseen the iProvo project for the city.
Now, VIB TV is just waiting for the completion of an independent legal review of a contract drafted earlier this month before moving forward with construction of the iProvo network.
If the contract is approved by the Provo City Council, which Murtagh expects will happen July 20, VIB TV will finalize its purchase Provo Cable and begin to lay the fiber-optic lines necessary to provide Provoans with the high-tech services.
Currently, Provo Cable supplies cable television to more than 2,400 local residents.
But once the fiber-optic network takes shapes, VIB TV will give subscribers the option of upgrading to its HomeNet programming for Internet, TV and phone services.
"Provo cable will be transitioned out of business while iProvo is built," DeLaMare-Schaefer said. "Subscribers will be given the option of joining iProvo or selecting another provider."
After the fiber optic system is in place — city officials say it could take up to two years — its services will be leased to private businesses, who will in turn lease it to residents.
"Basically, this means that for the first six months that there is fiber in any given area, we will be the service provider to that community," Murtagh said.
For more information, see www.homenetcommunications.com.
E-mail: lwarner@desnews.com
