UTOPIA secures its initial funding

The Utah Telecommunication Open Infrastructure Agency has closed on $85 million in revenue bonds to finance the first phase of its ambitious and controversial telecommunications project.

The closing on the financing came after the UTOPIA board of directors unanimously authorized the sale of bonds in a resolution Thursday. The 11 pledging member cities from around the state joined to form UTOPIA to provide high-speed video, voice and data technology to every home and business for the participating cities.

Eleven of the 13 participating cities have pledges that guarantee financing a portion of the entire project. Revenues from service providers will repay the bonds.

The first phase of the project will connect about 50,000 homes and some small businesses in six of the 11 pledging cities (Murray, West Valley City and Midvale in Salt Lake County and Orem, Payson and Lindon in Utah County.) Phase one is expected to be completed within a year.

The location of the first areas to be built for UTOPIA have not yet been determined.

"Leaders in our member cities have been visionary and courageous in working through numerous obstacles," said Paul Morris, UTOPIA executive director. "We're more convinced than ever that this is the telecommunications model of the future—an open broadband network that will allow consumers and businesses to choose advanced telecommunications services, video entertainment and ultra-high-speed Internet access from a variety of competing service providers."

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