Stop spending money on it and close it down.
In the real world of business, a 10 year history of failure at this level would
mean disaster. But when you prop up the company with taxpayer dollars, you have
no impetus for improvement and can keep executing your inept business decisions
with no penalty. When you are asking the residents of a city to cough up $2,750
dollars per household just to get connected, put a "notice" (read lien)
on their home if they choose the more "affordable" option of monthly
payments, AND you raise their property taxes to make the city's debt
payment to the company, you need to be running a tight ship. Ten years history
shows us UTOPIA management doesn't have the ability to do this. Time to
sell the company to the private sector (where this service should have been
offered in the first place).
This laudable state government effort at bringing the internet to the average
citizen can't ignore the multi-billion dollar private sector global
telecommunication corporations with multi-million dollar advertising budgets
enticing Americans with fancy hi-tech gadgets, deregulated cost restrictions so
that customer fees can be charged at market-rates, and poor management decisions
can be hidden away out of sight...it's no wonder comparisons are difficult
to come by...UTOPIA is an open book supported by public taxpayer dollars.
It's too bad investors can't have the same access to the larger
private corporations so they can make informed decisions as well.
Utopia has an option now where you lease the connection for like $20 a month, so
no more $1,000's of dollars up front for a connection fee if you don't
want. Also, I don't consider this project totally competing with the
private marketplace for 2 main reasons:1. There is no private company out
there laying down fiber throughout the Wasatch Front. 2. All Utopia does
is provide the fiber connection, but then you are free to choose what kind of
data flows through that connection, choosing to pay for data/voice/TV plans from
many private companies. (Akin to the government building our roads, but we get
to choose what kind of private vehicles to drive on those public roads) I
live in Layton and do not have Utopia as an option quite yet in my area. But
when it is available, I will be one of the first to sign up. I am glad
these kinds of audits exist and see it is a positive that they are working to
keep Utopia "honest" because I really want it to succeed.
I'd use UTOPIA if there wasn't a $1000 connection fee to connect fiber
from the street to my rental a few feet off the street. It isn't worth
trying to convince my landlord to approve the connection when he's already
touchy about any more holes in his walls. I certainly don't expect him to
drop $1000 per unit to bring in UTOPIA and I'm not going to pay that for a
rental I won't be in forever. For now I'm using Comcast. When I
lived in a Provo rental I used iProvo/mSTAR/Broadweave/Veracity. The
connection/setup fee was reasonable (on the order of a hundred) and the speeds
This has got to be one of the biggest fiascos in the history of Utah municipal
government. Roughly one-quarter of the bond money has been used to pay back the
bond? Cities paying as much as $3.4 million annually? That's just
incredible --- an incredibly irresponsible use of taxpayer money.Just think of what West Valley City and the others involved could do with that
money in terms of police, fire, parks/recreation, etc. Instead, it's all
being squirreled down a rathole.Why should anyone believe the
current chairman of the board when he says they've got the problems fixed
and are on the way to breaking even by 2015? I don't believe any projection
offered by UTOPIA executives or board members since the inception of this
boondoggle has come close to being accurate.
Once again we see what happens when government meddles in what should be private
sector free market business opportunities.Is anyone actually better
off having had this albatross placed around our necks, that will be sucking down
tax dollars for decades, even from people who do not use it?Coincidentally, UTOPIA is defined as "an ideal commonwealth whose
inhabitants exist under seemingly perfect conditions. Hence "utopian"
and "utopianism" are words used to denote visionary reform that tends to
be impossibly idealistic."Meanwhile, I have enjoyed ever better
broadband service at declining prices thanks to competition between for-profit
companies who want to earn my business.Let this be a lesson-
government should not meddle in what should be private business. It will never
be cheaper, better, faster, or any other positive feature. Remember this as
government takes over our medical care, automotive industry and who knows what
iProvo didn't fail because it wasn't a good idea, it failed because
those with vested interests in seeing it fail managed to get politicians to do
their bidding.In particular, forcing iProvo to use the
"wholesale model" - to only provide the connection and try to have a
bunch of different private providers selling services over that connection - was
something anybody with half a brain could see would doom the project to failure,
and those who were pushing that requirement were dishonest about their
intentions and their monetary motivations. The fiber infrastructure was a good
investment and would have paid off well for the city and its inhabitants if
there hadn't been so many people trying to force it to fail.The
Utah Taxpayers' Association and its lobbyists, including Mr. Van Tassell,
do not represent taxpayers' interests. I encourage these folks to move to
Somalia, where they can live out the no-government-services fantasies they now
publicly proclaim and leave the rest of us in peace.
At least they're trying...unfortunately they don't have much of a
chance because the idea was poorly founded initially (well...a risk at least),
so we'll keep spending money to bail it out. It *is* however, more useful
to residents than some other taxes, like..new recreation centers. So maybe
There are some of us that pointed out in the beginning that UTOPIA was not and
would not be financially feasible. And when UTOPIA said they needed more money,
we said to the cities, "don't do it." And the response from the
cities was that they were in too deep and needed to continue supporting UTOPIA.
Like Provo, these cities got into a field that belongs in the private sector.
The probability of UTOPIA breaking even in the next 5 years is very low.
Considering the current debt level, the narrowness of access to UTOPIA by
potential subscribers, the amount of construction left to be done, it is
unlikely that UTOPIA is capable of breaking even, yet alone making a profit.
It has been suggested that a private sector entity buy out UTOPIA,
but why would a respectful business entity buy out someone with the amount of
debt and lack of customer access? The cities will be paying for this for many,
many years to come. Perhaps the voters should reconsider who they vote for.
My, my....surprise, surprise. You mean local government, just like the federal
government, can't be all things to all people? What could those
politicians have been thinking that get their residents into this bog, anyway?
I feel for my relatives that live in one of the cities that have run up this
debt. Remember that come election time, dear family.
I wanted Utopia, but they do not have it available at my house which is in the
city giving them the most money and located right next to a school. But still no
service in my area. Instead I give my $70 per month to comcast for just OK