In a flashback of the old model, UTOPIA is offering up a new connection option very similar to the leasing option they started with. Customers who have the fiber in front of their homes can opt to enter into a 2-year agreement at $30/mo to cover the cost of installation. At the expiration of the two-year period, they can either go month-to-month or choose to re-up the contract. The upside is that there’s a shorter commitment term, but the downside is that the infrastructure charge won’t go away like it does when you buy it out. Customers who opted to purchase the connection can switch to the leased model and have their down payment applied towards the monthly charges.
To be honest, I don’t see that this is much of an advantage for users since you’re not saving any money and will end up paying in perpetuity for the connection. Since it’s only available to areas where the fiber is already on the curb, it also won’t do anything to get the network extended into your neighborhood either. It could, however, be a good way to sign up fence-sitters in existing service areas.
What do you think? Would you go for the short-term lease or buy out the connection?
UPDATE: Just to clarify, the conversion of a down payment on the connection into lease payments is only if you haven’t purchased the connection outright. If you’ve already bought the connection or have payments going towards doing so, this will still continue and you’ll still own the line. The line ownership option isn’t going anywhere.
How much is it to get it to your door? I have found plenty of places that say you pay monthly or what not, but how much total do you pay? I guess how much total do you pay to own is my question.
If the numbers are similar to iProvo (and I believe they are), the cost of curb-to-home (with a portal) should be in the $800 range. The total for buying out the connection is around $3K because you’re also buying a piece of the NOC and backbone with it.
If you finance the $3K over 20 years, the monthly portion for that is about $25 per month, slightly less than the lease. With either of these options, adding a data plan is about another $35 per month depending on the provider.
Currently I can only get 2% on my $3,000 or $5/m. Even at 6% ($12/m) this is a great deal.
I’m ready with my $3,000. Where do I sign up?
I’m in one of the few areas in Orem (southern tip) without fiber to the curb. Seems very unfair that my taxes supported getting fiber to a lot of others but I am left out.
I signed up for this plan and will be havin it installed next Tuesday. I am planning on moving in two years so it seemed a workable option. Isn’t it a pretty great option for people in this type of situation?