Broadweave defends efforts to buy iProvo

PROVO — Broadweave Network representatives downplayed allegations their attempt to buy iProvo is an "inside job" Monday while fielding some tough questions from concerned residents.

Executives of Broadweave — a South Jordan-based company that offered to buy the city's fiber optic telecommunications network for $40.6 million — met with Provo residents at the Network Operation Center at 744 N. 300 West on Monday to answer their questions. Broadweave CEO Steve Christensen denied assertions that the deal with the city is an inside job.

"We got the same, exact (request for proposal) everyone else got," he said.

According to a copy of the RFP, the city sent out requests April 18, 2007, seeking "qualified companies to submit proposals to provide telecommunications services and business opportunities on the iProvo Network."

According to its response to the RFP, Broadweave — a company that provides voice, video, data and other communication services — responded to the RFP stating it was open to numerous proposals.

"Broadweave seeks to explore any and all business opportunities related to the iProvo network including, but not limited to, becoming a service provider," the response states. "Broadweave would welcome the opportunity to explore in-depth various opportunities, including ... offering network management services to full takeover of the maintenance and operation of the network."

The city and Broadweave then entered negotiations that eventually led to the agreement in which Broadweave would assume payments for the bonds taken out by the city to build the network. In exchange, Broadweave agreed to grant the city dark fiber for future projects, dedicated capacity on the system — valued between $1.2 million and $2.2 million — for $300,000 per year and guarantee up to 3 megabytes of bandwidth to every business and residence in Provo.

While many city officials have welcomed the deal, some outside city government don't think the transaction is completely on the level. Pete Ashdown, CEO of Internet service provider Xmission, said the public should be concerned because the process was carried out away from public scrutiny.

"This was done behind closed doors," he said.

Ashdown also called the validity of the RFP into question because it didn't specify bids to privatize the system.

Provo spokeswoman Helen Anderson said the language in the city's RFP was broad and not limited to any particular proposal. She also said Broadweave wasn't the only entity talking shop.

"The RFP led to some proposals to privatize the network," she said.