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4 cities OK UTOPIA refinance; Payson shoots it down
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18







Yes, it costs money. Yes, it is tough being a pioneer. Yes, it can and will definitely be of great benefit as it expands and is more fully developed.
It can't be just marketing or the providers. That is a very bad sign that Utopia is doomed no matter what they do.
It may well be that the result will be a government overseen utility similar to electricity, natural gas, and telephone service. Somehow I don't know that is the best plan. Maybe private providers need to become more competitive to keep that from happening. Another option maybe a basic access, free or low-cost product, like non-cable, antenna-based TV for everyone (still faster than modem), and a faster, less restricted product for those who pay for it. Possible? I have no idea. Just a thought.
UTOPIA is the answer, an open network that encourages healthy competition and enables consumer choice built on a strong network (ie: MPLS fiber to the home) IS the right thing to do.
But the truth is, no private business would ever have undertaken this project, because based on the projected cash flows alone it is so risky they wouldn't be able to finance it over more than 5-10 years at most. UTOPIA is taking the sales tax dollars that our cities use to pay the bills everyday and encumbering those funds in order to let them finance the project over first 20 and now 32 years.
So "any good business board" would've realized upfront that the costs versus the projected reveunes constituted excessive risk. But you know what? If they had cities willing to throw an unconditional backing behind their project, I bet you would be right- "any good business board" would make the same decision, because they have the potential for upside without the risks. The cities now hold the risk.
Even as a supporter, I was a bit concerned with the refinancing efforts. After last night's presentation, I feel confident that the refinancing will bring the network back on track in the long-term.
FTTP will enable both businesses and residents to realize the future of telecommuting, real-time video conferencing, education resources, as well the plethora of other techologies that will be realized as bandwidth, network latency, and access becomes available.
As far as Payson City goes, I would encourage the Deseret News to get their facts straight before printing inaccurate data. What ever happened to accurate and objective press?
I urge people to do their own research into the issue rather than blindly listening to propaganda spread by big telecom and the associations they fund.
We fall for it every time.