Deseret News | Broadweave unsure when it will pay Provo

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Broadweave unsure when it will pay Provo

Jesse Harris | 10:38 a.m. Dec. 17, 2008

So they use the surety which was supposed to protect the city from default as a kind of interest-free loan? And nobody seems particularly bothered by this?

Disgusted | 10:51 a.m. Dec. 17, 2008

This article is full of doublespeak and lies. Mr. Christensen refers to agressive marketing being key to their supposed growth. I am a Provo resident and have never seen any marketing anywhere for Broadweave. What the heck is he talking about?

He also states that Broadweave could miss up to 18 payments in a row before they were in default. This amount comes close to the $6 million security deposit. So he is saying that Provo has made a deal that allows him to quit paying and use up the security until its gone and Provo can do nothing about it. 18 months of missed payments before default, you have to be kidding!

Shame, shame on you Mayor Billings for not protecting the city's assets better than that. What a sham of a contract! You should resign!

Capt. Video | 1:14 p.m. Dec. 17, 2008

If Broadweave were to pay 18 payments for iProvo, they would have paid almost 6 million dollars of the city's $40 million dollar network. I'm not thinking that is all that bad for Provo.

However, I believe Mr. Christensen and I too would rather see Broadweave using their cash to install new customers than pay the bond payment. They are still paying the bond payment with their money, it's just coming from the deposit. This is their money set aside to insure the bond payment gets made.

I see nothing wrong with this.

We should all support networks like Broadweave and UTOPIA by becoming their customers.

Comments continue below

Suggestion | 1:21 p.m. Dec. 17, 2008

Before you start throwing around words like "bothered", "lies", and "doublespeak", maybe you should read up on the terms of the deal that was cut several months ago. Provo IS, in fact, getting paid, just not out of Broadweave's operating cash flow. The author of the article should have been clear about this.

No Provo marketing effort | 1:25 p.m. Dec. 17, 2008

I have seen no Broadweave marketing effort in Provo. None.

The only marketing I ever saw for the iProvo network was a full page ad in my electric bill pointing out the benefits of iProvo. Even THAT has ceased.

Is the council not concerned about proof of marketing efforts?

Looks like they have 18 months to make this business plan work...however, I hope they intend on paying back the deposit when they start to make the monthly payments...

Looks like Billings is handing John Curtis this next election on a silver platter!

John...I hope you have a plan.

You Reap What You Sew | 2:10 p.m. Dec. 17, 2008

To all you Council Members that rubber stamp everything this Mayor does not only shame on you but remember your ignorance is no excuse for you not taking responsibility for your decisions and the due diligence you should be giving to this issue. George Stewart may be flying off into the sunset and obviously after being the biggest opponent of this could care less, but the rest of you Council members WILL be held responsibile come reelection time. This fiasco isn't going away and someday, in the near future most likely, yours will be coming as Broadweave spends all of the 6 million, sells all the trucks and other assets received from Provo City and then hands it back in your laps and rides off into the sunset looking for George Stewart. That day will come. And what are the citizens of Provo left with? Not 6 Million to regroup, but with nothing but more debt and more costs to get this thing running again because who will buy the injured horse now? Your willingness to look the other way is disgusting and I urge all Provo voters to join me in sending each of you on your way!

Double Billing | 2:54 p.m. Dec. 17, 2008

Broadweave has done no marketing. They raised the entire amount by double billing all customers for a month. The said they are requiring customers to now pay in advance instead of in arrears. Of course they have no evidence anyone was ever paying in arrears because they say hey don't have the records. At any rate, Broadweave required 13 monthly payments from customers this year--that just about accounts for the 10 percent increase in revenue. Hard to believe they are doing well. I for one am leaving at the first of the year.

RE. Capt Video | 2:55 p.m. Dec. 17, 2008

It's not as simple as $40,000,000 - $6,000,000 = $34,000,000. This is a Bond they are paying on. A 30 year Bond!

This $6,000,000 is mostly interest owed...just like your mortgage is mostly interest the first 15 years of the loan. But...After only 18 months...Provo is still on the hook for 39,000,000 (essentially not specifically)

Confused | 9:39 p.m. Dec. 17, 2008

Mstar always billed forward one month to ensure they received payment for services. That is a standard practice. Mstar had about 70% market share in Provo so if Broadweave billed double to get customers on a billing cycle where they are paying for the month ahead, that means Mstar customers are now paying for two months in advance. Does anyone know if they only double billed non Mstar customers? If they didn't that would also give them almost a 10% increase in revenue. Someone needs to keep an eye on what is going down or Provo residents are going to really get burned.

New Broadweave Customer | 10:26 p.m. Dec. 17, 2008

Broadweave is, indeed, actively marketing in Provo. I am a new customer as of Monday, and my switch to Broadweave is a direct result of their marketing efforts. I'm very pleased with the services and the customer support I've received thus far, and I'm saving loads of money. And my new Internet access is fast. Really fast. Mindblowingly fast.

Disgusted | 7:14 a.m. Dec. 18, 2008

Capt. Video,
You seem to think that just paying the bond payments is all thats needed. What about maintaing the value of asset that the people of Provo have paid $60 million for? Provo sold this deal on the basis that the $6 million was insurance to do just that. Now it turns out to be the Broadweave slush fund. They could use it to offset bonuses for their CEO. Does that sound familiar?

Disgusted | 7:20 a.m. Dec. 18, 2008

To suggestion,

I am quite familiar with all the contract documents and what was sold to the public and the council. This free and easy use of the $6 million by Broadweave was not at all the way it was described during the pitches made by Billings and Garlick. This stinks and your karma will catch up to you.

Man Up! | 8:23 a.m. Dec. 18, 2008

"New Broadweave Customer | 10:26 p.m. Dec. 17, 2008
Broadweave is, indeed, actively marketing in Provo. I am a new customer as of Monday, and my switch to Broadweave is a direct result of their marketing efforts. I'm very pleased with the services and the customer support I've received thus far, and I'm saving loads of money. And my new Internet access is fast. Really fast. Mindblowingly fast."

Seriously? Kip, Jon, of whomever at Broadweave; quit trolling and leaving these obviously planted comments.

Horrified | 8:48 a.m. Dec. 18, 2008

A $750 dollar install? Are you kidding me? Broadweave will be gone before any of these customers breakeven and start to become real revenue. So the never-ending spiral of increasing debt will just continue. In the meantime, the first generation network equipment, client premise equipment, and video headend all are now becoming obsolete. At the end of the day Provo will get back a broken, obsolete, network with increasing fiber-attenuation problems and a $39 million bond still to be paid, and no money to fix anything. This was a great plan Mayor Billings, Provo council, and visionary Kevin Garlick.

TO: New Broadweave Customer | 11:43 a.m. Dec. 18, 2008

How were you marketed to? What was the pitch?
Where did you hear about broadweave? What exactly is so awesome about broadweave and their colossal marketing effort that nobody in Provo has seen or heard?

Please (guys at broadweave) we'd love to have you break it down for us.

New Broadweave Customer | 9:44 a.m. Dec. 19, 2008

I have no affiliation whatever with Broadweave, apart from being a new customer, so I can't describe their marketing plans. I can only describe my own experience. I initially heard of Broadweave by reading the news. I researched the company and its products myself, but didn't make any decisions to switch at the time. When a Broadweave representative came to my door, I invited him in. I have several unusual needs for a residential customer (I use three phone lines, and I need fast upload speeds in addition to fast download speeds). TV is not a high priority for me; I have no need for thousands of channels. Broadweave's service meets my needs, and the HD channels come through beautifully on my HD television. The big selling point for me was the price. I'll be saving nearly $1000 dollars this coming year on my phone, Internet, and television service. Say what you want, guys, but it's working for me.

Ridiculous! | 1:51 p.m. Dec. 21, 2008

Can anyone imagine a renter paying their rent out of their security deposit? That is essentially what Broadweave has done. Especially since Provo carries all the risk and Broadweave doesn't. It doesn't surprise me that "Capt. Video" makes the comments he does. Working as the manager of iProvo he is the one that diligently sought to destroy it from the day he hired on.

Disgusted | 6:52 a.m. Dec. 24, 2008

To: New Broadweave Customer, Thanks for you clarification that helps. My point is there is no marketing. In your case what happened is called direct sales and thats great but not usually too productive without marketing. Now I think I know why Broadweave thinks they have marketing.

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