For the fiscal year that ended June 30, iProvo was expected to bring in slightly more than $1.4 million. Nearly half of that — $683,000 — was to come from projected transport and service-switch fees. These fees are an established percentage of money Provo collects from service providers for each subscription they sell.

Year-end figures weren't immediately available, but December's mid-year figures show that Provo had collected only $76,129 in transport and switch fees.

Strong returns from some of iProvo's investments and $157,000 in unanticipated income from the sale of Provo Cable helped offset the shortfall — but the end-of-year totals were not expected to meet projections.

This year's revenue projections, however, are higher — with an expected $2.1 million in fee revenue and a total revenue of $4.6 million.

DeLaMare-Schaefer said last year's revenues were lower because the network did not begin service until January, a little later than city leaders thought it would start when the projections were made. But the unexpected income and better success in the second half of the year made a difference, she said.

"We think we're going to come in fairly close to the projections," she said.

Turley said he was aware the system got a late start but worried about the much-lower-than-expected subscription rates. Provo would still have to pay for the $40 million system if the project fails.

"Are (subscription rates) off the mark because people aren't buying what iProvo has to offer — or was HomeNet just not doing its job?" he asked.

Even if HomeNet were to pull out of Provo, DeLaMare-Schaefer said, HomeNet's 1,600 customers shouldn't experience an interruption in service because the city formulated a backup plan with another company.

"Howell Communications is a retailer that sits on the shelf and steps in in the event of unforeseen circumstances," she said.

DeLaMare-Schaefer also said the city is close to signing contracts with two additional providers to lease the iProvo network. "From the start when we took this idea to the City Council, we've always talked about it being a network with service options," she said.

HomeNet offers digital cable, telephone and high-speed Internet services in packages. The least-expensive package is telephone and 512kps Internet, which runs $54.99 per month. The "triple play" option, which bundles all three services, runs from $89.99 to $114.99 per month, depending on the speed of the Internet connection.

DeLaMare-Schaefer said she didn't know what effect competition would have on those rates but said Provo's fees would remain constant regardless of what service providers charge.

The service is available to half the city right now.

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E-mail: jtwitchell@desnews.com