Deseret News | Provo to sell iProvo for $40.6 million

Reader comments
Provo to sell iProvo for $40.6 million

arc | 1:19 p.m. May 6, 2008

Will these guys by UTOPIA as well?

major problem! | 1:44 p.m. May 6, 2008

It needs major engineering overhaul to support the system. Loosing customers because poor infrasturcture performance. It needs major design and engineering support to sustain customer demand. Specially come to residential phone, make sure it provides solid service and connectivity in case of emergency situation.

Other service providers? | 1:53 p.m. May 6, 2008

I think it's odd that the reporter didn't mention what impact this sale will have on other service providers currently offering services on the iProvo network. Does anyone know?

Comments continue below

nice job | 2:10 p.m. May 6, 2008

I am very impressed with how the Mayor handled this situation. Provo is one of the best run cities I've ever seen.

Bradshaw Bradbury | 2:18 p.m. May 6, 2008

40.6 Million is a lot of dollars good grief that could buy just about anything they want!

Don Chris | 3:02 p.m. May 6, 2008

Way to go lew! You set up provo for the initial cash outlay and now you get an additional check for brokering a deal. Glad I moved away.

Yeah | 3:06 p.m. May 6, 2008

Steve Turkey what a joke. IProvo is a generation ahead of itself. Hopefully it will succeed under new management.

John | 3:08 p.m. May 6, 2008

Please may we hold our applause until we see the details? Nothing in iProvo has been handled honestly yet -- not the Mayor's original sales pitch, which included a promise to allow us to vote on this, not the Mayor's actual investment of $40 million of our money, which we did NOT get to vote on, not the Mayor's selection of service providers, who apparently were basically carpetbaggers. Now we have a company created to "buy" iProvo -- I suppose they will assume the debt, which means that if the deal goes well they will profit, and if it doesn't the debt holders will be back knocking at Provo's door for payment.

To Arc | 3:21 p.m. May 6, 2008

One could only hope

To Other service providers | 3:24 p.m. May 6, 2008

Sure I know. Their out. They owe the city more than $1.0 million with no ability to pay. The new owner will kick them out and consolidate operations. The idea here is to take the various unprofitable pieces and combine them into one profitable operation. This is the only model that works. Now lets hope the new owners can compete with Qwest and Comcast.

To nice job | 3:28 p.m. May 6, 2008

You must be kidding!! Billings plowed over $60 million into this project and then bailed out for $40 million if that is really the number. There may be all kinds of deal structure events that will reduce the actual cash received by the city. Billings needs to go out the door along with iProvo. This happened on his watch and he does not deserve to stay.

..i play a tech on tv.... | 3:35 p.m. May 6, 2008

lets give support to a company who had the guts to take over something failing with the desire to benefit the citizens of provo. ideally we all can support the company in their migration of a piece of hooey to something that is of value. I would imagine this is not going to be an overnight transition.

Mark | 3:42 p.m. May 6, 2008

Good to hear old Bob Frankenburg, former CEO of Novell, is alive and still contributing to the community.

BAD NEWS!!!!! | 3:49 p.m. May 6, 2008

what a whole bunch of political fluff, this was not the vision of the city as quoted by the mayor, it was an open service provider model, where private industry would compete over a public infrastructure so as to give the city, businesses and residents the freedom of choice and future proof infrastructure for the long hall so as to not fall behind of times. All I see happening now is giving cheap fiber infrastructure to a nother money grubbing monopolistic service provider like unto Comcast and Quest! And the reason the reason crowd applauded was because the majority of the people in attendance where those benefiting from the transaction not the citizens. That RFP alluded to was not a RFP. There seem to be a lot of unknown issues still on this. I don't know if due process has been fully followed as of yet. This is very BAD NEWS if it happens!

What do you expect? | 3:54 p.m. May 6, 2008

The success of a city owned network is largely due to community acceptance. That means, you (citizens) buy the services. Do you think Comcast and Qwest (with others) are going to allow a city-run network to take their customers without a fight? Citizens have to put THEIR money where their mouth is and support the network. That means subscribe. The incumbents have deep pockets and will do whatever it takes to crash the party. Do you realize that anywhere UTOPIA and iProvo, Comcast and Qwest has the lowest rates compared to their other markets? $40.6 million is just the buy out. It will take millions to compete. You wanted it citizens, support it...that means subscribe. That means work with it while it goes through its growing pains. That means, don't ask to have it for free or given away. That means, pay fairly for it. Will it have problems? You bet. Will the next owners be any better? Don't count on it. The technology is new. We're all learning how this is going to work. And like most issues like this...the public doesn't have a clue...they only command a perfect service, but want it nearly free. You decide.

Provo is the best! | 3:57 p.m. May 6, 2008

We have lived in seven cities in two States and two foreign countries. Provo is the least expensive, the most responsive and obviously the best governed of those other city experiences. They are prompt to care for problems and all of the employees we have had contact with have been exceedingly courteous. iProvo is absolutely the best internet system with fewer problems (0) than Comcast, AOL or Qwest. We appreciate all that Mayor Billings has and is doing for the citizens of this great City.

iProvo Failure | 3:59 p.m. May 6, 2008

Give my a break. Billings pushed this thing which was a mistake to beging with. Government has no business trying to compete with private enterprise. The money spent here would have been better spent on roads, police and fire protection- you know the real things government is supposed to be in charge of. I never thought King George would be considered reasonable, but compared to Billings, anyone would be better.

to "wdye" and BAD NEWS | 4:17 p.m. May 6, 2008

that is a great view! we are spoiled and want it all for nothing!! companies dont survive giving away service for dirt cheap or for free.
Also, this is not a primary line, it is voip..voip runs off of power and, unless a battery is present, phone dies.
BAD NEWS....don't tell me, let me guess, you own a wireless ISP out of your garage, and with your linux server you wanted to run the network, darnit all, missed the RFP!

To iProvo Failure - | 4:20 p.m. May 6, 2008

I guess you don't understand iProvo, it does not compete with the private industry! It promotes choice and competition on a level playing ground because the cost of infrastructure is so much. And I'm sure the same arguments were given when fire, police and roads where being brought into the government domain!

Anonymous | 4:45 p.m. May 6, 2008

Sad. Selling off and abandoning the network is like saying, "Our city sewer system isn't cost effective, let's get rid of it." In this day, a state-of-the art fiber optic network is critical to our society and economy. It should be as much a part of city infrastructure as roads, electrical systems and water distribution. It amazes me that people can be that short sided. Oh, wait, this is Provo we're talking about, where it took a couple of generations to convince the city fathers they needed a real city library instead of assuming people could go to BYU for most of their books.

I hope the rest of the Wasatch front can see into the future far enough to make this thing work. I guarantee that the two biggies, QWEST and Comcast, are celebrating today and none of us will be invited to the party (we'll just pay the bills). Kudos to those companies who are working hard to provide services across the fiber optic network - go MSTAR.

iProvo Rocks | 4:56 p.m. May 6, 2008

I like iProvo. Sure, there have been both good and bad but the City of Provo is better for it.

Here's a prediction | 5:30 p.m. May 6, 2008

iProvo service providers (Mstar, Veracity), potential service providers (Xmission) and incumbent providers (Comcast, Qwest) aren't going to like this much. They're going to challenge the RFP saying that it is invalid because there is no start/stop date on it. It is also invalid because it does not say anything about a purchase of the network. It is far too vague and can only be seen as an attempt to retroactively validate the sale to Broadweave. Guaranteed that some of these other service providers would bid on the network and be preferable to Broadweave based on the RFP's own criteria. My guess is that the RFP will need to be re-issued, and that other companies (i.e. Xmission, Veracity, Mstar, etc) would be much better positioned to win the RFP.

I'd like to see. | 6:35 p.m. May 6, 2008

Mstar...in the hole over a million with iprovo, come up with 40 mil, strike one, Xmission, try to join a network they have no idea about, strike two, see any company in utah own and operate a triple play network successfully...strike three, new game, new player, lets support them as the new provider of a "new" system like residents should.

Broadweave is the best choice | 7:31 p.m. May 6, 2008

Broadweave has very innovative, competent leaders that can make iProvo a success. Smart move to privatize it.

An even bigger prediction | 7:35 p.m. May 6, 2008

I bet Broadweave has orchestreted a buy out of the other service providers - mstar, xmission, nu vont, veracity...and soon on the horizon is the buy out of the other massive failure UTOPIA...just watch!

Here it comes . . . | 7:41 p.m. May 6, 2008

So, we've had two providers on iProvo to this point, and they essentially charged the same price for essentially the same services. Now we get one provider taking over? Great. I already checked out the website for the proposed buyer and one change already is that instate long-distance calls will be 3 cents a minute and interstate calls will be 4 cents per minute---unless you pay for unlimited calling, of course. Let the price increases begin! Cha-ching, cha-ching, cha-ching . . . .

Anyone ever heard of Broadweave? | 7:47 p.m. May 6, 2008

Anyone know how big these guys are? What's their history? Seems like a mom and pop shop to me that Sorenson group decided to throw money at.

Include the mayor | 7:56 p.m. May 6, 2008

Can we throw Billings into the deal so he goes along with IProvo?

Re: Anyone ever heard of Broadwe | 8:08 p.m. May 6, 2008

Broadweave provides service in Lehi in the Traverse Mountain area. I have really enjoyed it. They were quick to set me up when I moved in and helpful and quick when I needed help.
The internet is smokin' fast!

Are you nuts?? | 9:46 p.m. May 6, 2008

"I am very impressed with how the Mayor handled this situation. Provo is one of the best run cities I've ever seen."

What hole have you been hiding in? If you knew the fiasco surrounding the golf course deal you wouldn't be saying that.

Way to go Broadweave | 9:50 p.m. May 6, 2008

The only triple play provider in Utah who owns their own infrastructure. Excellent business decision. The residents of Provo should step up to the plate and support this 100% for saving the city money and aiding in digging the city out of a financial mess. This is an enormous financial commitment for any company. Utah should be proud to have an organization in their own backyard who can offer these service, who cares about local economies as opposed to a giant from out of state who would not have the same interests for the community. KUDO'S TO UTAH AGAIN FOR BEING A LEADER IN INNOVATION!!! Stop finding reasons to complain Utah! Find reasons to progress and create! We welcome Broadweave with open arms!

tigerlily | 10:05 p.m. May 6, 2008

to other service provider: selling it off was the best thing billings has ever done. the residents who don't use iprovo didn't want to have to pay for something they weren't getting

to broadweave posters | 10:08 p.m. May 6, 2008

"The internet is smokin' fast!"

Hang on a second...

Okay, now that the vomit is off of my screen, can the newly minted Broadweave workers please get back to setting up their Microsoft Office accounts instead of trying to pump up this deal on the comment boards?

Broadweave BOO! | 10:39 p.m. May 6, 2008

It does seem that Broadweave seems to have some funds behind them & they are local but they are unfamiliar with Video, they aren't used to offering tripleplay! Customers will go through the learning pains all over again. In their very small/few service areas Broadweave currently has they only offer phone, and internet - and very slow at that, they will probably limit everyone to 2Mb/s down and 1mb/s up like they do in Lehi. Hello price hike, & goodbye speed! Kudos to Provo and UTOPIA Cities. Anyone can look in hindsight & point fingers & say 'I would of done this or that'. I'm sure if iProvo or UTOPIA were to do it again they would do things diffently. Like start off connecting city bldgs. & actually charging them like they should have & then business parks then businesses and then homes so as to then be able to pay for fiber infrastructure and be profitable. I also agree the RFP thing is looking kind of shady. If iProvo is to be sold off I think it needs to have a new RFP and I like the idea of selling to someone who is pro Open Sp Model.

to Sad | 10:53 p.m. May 6, 2008

your right! go mstar!!! i am so excited to see them be successful!

Re Broadweave BOO! | 11:09 p.m. May 6, 2008

No Private Company will support the Open Service Provider model on a network like iProvo. The plan with iProvo and UTOPIA is for them to make enough money as a wholesaler to the providers to cover their own costs, any extra gets reinvested in the network. iProvo and UTOPIA themselves aren't after a profit. A private company wont be after the same thing and therefore wont do an Open Service provider model.

inside info | 12:49 a.m. May 7, 2008

This deal isn't what it seems. Broadweave is going to flip this for a huge profit or they will run it into the ground and Provo will be back on the hook. Too many secrets here and true to Billings style the truth will stay hidden because we aren't willing to look at this in the light of day.

to: Are you Nuts?? | 8:41 a.m. May 7, 2008

No... ARE YOU NUTS?

How can you be impressed with this backroom shady deal brokered by the shadiest mayor in the history of this city?

This isn't a win for the citizens. It's a win for Billings.
Obviously you're his relative or something like that or you'd be just as bugged as the rest of us.

As for me and my house, we will ditch iProvo when the guard changes.

to to: Are you Nuts?? | 10:07 p.m. May 7, 2008

It would be wise to be a supporter of the new system, its your economy. You should be a proponent of local business support. As Provo citizens we have the potential to put ourselves on the map as one of the greatest cities in the US thanks to Billings creativity. Instead of not playing in the sandbox because someone stole your truck, why don't you pick up the shovel that nobody was using and decide to build a new sand castle.

Mark | 3:39 p.m. May 8, 2008

That is $3900 per potential customer. But on the other hand Provo City has financed the whole deal.

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