This morning, an inside source disclosed the fate of the existing iProvo retailers. According to this source, Broadweave plans to announce on Thursday that they will be buying out the customer lists from MSTAR, Veracity and Nuvont to become the sole retailer on the network. This move comes as MSTAR has been found to be about $950K in arrears to Provo for their use of the network, only $75K of which is expected to be paid prior to the transition. As part of the acquisition, Broadweave will assume the remainder as a debt due to it from MSTAR.
Between this debt load and their recent layoffs, there is serious concern that MSTAR could fold in the very near future leaving UTOPIA without a triple-play provider. This comes as Todd Marriott announced at the Payson City Council meeting that some new triple-play providers are on-deck to join the network and increase competitive choice, no doubt a result of his experience in the telecommunications field. Since the sale of iProvo to Broadweave looks likely to close and the deadline for sale in June 30, there's little time left to pick up the pieces if MSTAR's financial condition rapidly deteriorates.