Report by think tank blasts iProvo

PROVO — An longtime critic of iProvo on Wednesday blasted the city-owned fiber optic network in a eight-page report that calls for the city to sell the network.

The Reason Foundation — a Los Angeles-based think tank that promotes libertarian principles — issued the report highlighting "iProvo's poor performance."

The report's author, Steven Titch, a policy analyst at the foundation, said the state of Provo's fiber optic telecommunication network reinforces observations about the inefficiency of municipal-owned fiber optic networks.

"It looks like Provo's experience is going to end up as another example of a city that attempted to finance, build and operate a broadband telecommunications network and end up drowning in red ink," Titch wrote.

Titch also stated iProvo continues to face mounting losses and relies too much on revenues from government sources.

"Provo's Telecommunications operation relies heavily on loans from other public funds, especially from the city's Energy Fund," Titch said.

Provo spokeswoman Helen Anderson said city officials are aware of the report and they are reviewing its assertions in preparation for a forthcoming response.

The Reason Foundation issued another report by Titch in December 2006 that lambasted iProvo. Among his findings, Titch stated: iProvo was behind on its business plan and would continue to be forced to borrow money; iProvo's wholesale plan depended heavily on the performance of its retail partners; retail pricing for services using iProvo was not substantially different enough to prompt consumers to migrate away from incumbent service providers like Comcast and Qwest; and iProvo was not contributing significantly to the growth of broadband in Provo.

A few weeks later, Provo city officials fired back at the report's findings in a 32-page response that called into question many of the Reason Foundation's assertions. They also stated the report's conclusions were not reliable because the foundation has "a definite predisposition against municipal broadband deployment."

This latest Reason Foundation report comes amid a massive effort to assess and retool iProvo's operations. Last year, the city hired CCG Consulting and Franklin Court Partners to analyze the network.

Acting Telecom Manager Kevin Garlick said they are going to release draft copies of the consultant reports Thursday, and the City Council is planning to meet Monday to discuss the findings.