Free UTOPIA!

I received word from a reliable source at a service provider that Broadweave may be considering joining UTOPIA. This information was passed along from a company that both of them do business with. According to this company, Broadweave has stepped up its outsourced call center operations in preparation for adding new customers on UTOPIA’s network.

UTOPIA and Broadweave have had an acrimonious working relationship in the past stemming from the entanglement between UTOPIA and iProvo regarding the head-end assets. This was no doubt hurt further by ex-CEO Steve Christensen’s forceful and demanding management style. The question is if the upending of upper management is enough to mend the relationship to the point where this rumor becomes fact.

If true, this would be a really good (and smart) move for Broadweave. They’ve hit a brick wall with adding customers on iProvo and are under a “do or die” deadline of February when the reserve runs out of cash. The rumors that they will soon be booted from Traverse Mountain also persist, though nothing new has developed. Getting access to the tens of thousands of UTOPIA homes passed and preserving some of their Traverse Mountain customers could give them the revenue needed to pay off the iProvo bonds and better leverage their head-end and NOC facilities.

Of course, we should also ask if Broadweave would be good for UTOPIA. Customer service complaints still persist and the company may not have the cash available to market to new customers unless EsNet makes additional investments. Broadweave has also failed to deliver video to Traverse Mountain despite the acquisition of a head-end, something I understand to be one of the main reasons for that development’s discontent. There’s also the matter of going from a geographically condense market to one spread over a 120-mile stretch, something that could drive their install costs up.

We should also wonder if Broadweave joining an open network like UTOPIA would signal that they’re ready to give the wholesale model another shot in Provo. Apparently closing the network wasn’t enough to staunch the flow of red ink as they claimed it would. Outside providers have money to spend on snapping up new accounts while Broadweave is charging around $600 for installs (and, I should note, not offering a discount on monthly service as a result). It’s entirely possible that a reciprocity agreement with UTOPIA providers to give them access to the network could result in higher overall revenues even at the expense of retail customers. Research from The Yankee Group suggests that an open provider model generates more revenue than adding lots of extra services, revenue that Broadweave needs.

So what do you think? If this happens, will it be good for Broadweave, UTOPIA, both, or neither?

A reliable source passed along a rumor that Broadweave’s troubles in Traverse Mountain are about to come to an end, but not in the way the company would like. Residents, after years of not getting video and being required to purchase phone service that many don’t use, are reportedly about to have the HOA sever the contract with Broadweave for data and voice services. Given the amount of griping I’ve seen on the Traverse Mountain Community forum, it’s not surprising to see this happen. I find it ironic that Broadweave cited high customer satisfaction in TM as a reason they were well-suited to operate iProvo.

Of particular interest is that the HOA is also rumored to be negotiating with several new service providers to replace Broadweave, including UTOPIA. If UTOPIA is being considered and ultimately wins the contract, residents would get immediate competition and triple-play services. (Side note: the administrator of the TM forum is apparently a UTOPIA employee who left iProvo.) It’s anyone’s guess as to if the rumor is true or not, but it makes sense given UTOPIA’s relationships with existing service providers and backbone proximity to the community.

A forum poster on DSLReports isn’t too happy with Prime Time Communications. S/he reported had an STB swap last week that resulted in a loss of channels, frequent pixelation and/or tiling, and being downgraded from a dual-tuner DVR. They’re also reporting issues with out-of-sync audio and video with the new Aminet 530 STB. Given the rather hasty swap from the iProvo headend to the Prime Time one in St. George it’s not surprising to find a few bumps in the road but after years of MSTAR’s video issues, it’s very ill-timed.

Any readers out there with similar issues or pointers on how to fix it? Or, better yet, would someone from Prime Time like to reach out to give this guy a hand?

A blog post showed up in my Google Alerts from a Provo resident who claims that Broadweave may be charging big-time install fees for customers not already wired to iProvo. Per the poster’s account, they called on behalf of a neighbor and was told that any home not already hooked up would be assessed a $600 install fee. A lot of people hammered on UTOPIA for their install fee trial balloon and they responded with low install fees (if any) and a slightly higher but still competitive monthly rate to compensate. Broadweave had better smart up and take a play from that book.

Inside sources confirm the rumor from a month ago: Steve Christensen will leave his position as CEO of Broadweave and will not longer be a part of the company effective today. After months of relying on the line-of-credit to make the bond payment and facing an increasingly hostile HOA in Traverse Mountain, investors at EsNet are rumored to be taking over operations and exerting much greater control over the company to protect their investment. I say it’s about time.

This change in leadership can only be a good thing. Steve always struck me as a used car salesman in a better suit, all too willing to believe his own inflated hype. In contrast, I hear the guys from EsNet are very savvy and know how to run a business. Maybe this ship can finally be turned around.

Forum commenter ALinPerry reports receiving a notice with his utility bill that UTOPIA will be going door-to-door in Perry next month to gauge interest in getting service. If interest is high enough, UTOPIA will finish the west side of town and add new subscribers as early as July. If you’ve been waiting for UTOPIA in Perry, keeps your eyes open for their reps.

Word around the campfire is that EsNet isn’t very happy with how Broadweave is doing and plans to find a new operations manager as part of taking a more active role in the company. I’ve confirmed with with two sources, so it seems pretty solid. One of the sources claims that CEO Steve Christensen may be out of a job as part of the reorganization. It’s good to hear that EsNet is trying to fix what’s broken but will it be enough to right the ship? There haven’t been any reports of it so far, but I’m willing to bet that Broadweave made their bond payment from the reserve fund yet again and is on-track to do so next month.

UTOPIA will be holding a ribbon-cutting ceremony and open house this Friday February 20th to officially open Brigham City. The event will take place from 1PM to 3:30PM at 100 N 600 W. The rumor mill says that a new provider may be announced at this meeting.

Centerville is getting closer to using RDA money to build a fiber hub in the city even as the threat of Sen. Bramble’s RDA amendments loom. The city council was unanimuous in voting to draft final documents to make it all happen. Once built, it would rescue about $2M worth of “stranded investment” at a cost of around $100K.

Sen. Bramble’s boxcar legislation for the changes, SB205, may contain provisions that would allow such carrier-neutral infrastructure to be built with RDA money, but there’s still a very strong chance that the provision would be nixed and telecom spending banned outright. You’d better contact your state senators and representatives to make them aware of what’s coming.

UPDATE: The Standard-Examiner has more on the story.

Commenter Dave has noted that he has seen UTOPIA’s mobile home cruising the streets of Brigham City. From what I’ve heard, this is being used as a mobile office to provide local demonstrations and provide local support ahead of any marketing efforts. Don’t know if they were passing through for gas on their way to Tremonton or if it means that service in Brigham is right around the corner. Your best bet is to call up UTOPIA or one of its providers to find out if service is available to you.