Tag Archives: John Curtis

No, Google Fiber Is Not Coming to Provo

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Update: Yep, I totally missed this one, the one time out of dozens that it actually proves to be true. Glad the troll commenters are having a good time with it.

Provo (or, more specifically, Mayor John Curtis’ office) has been hyping up an “epic announcement” for weeks now. Somewhere in the speculation came a number of rumors that Google Fiber would be swooping in to either take over or supplant iProvo. Quite frankly, that’s an absolute load of malarkey. Nothing in the history of either Provo’s handling of its fiber optic assets or Google’s launch of Google Fiber cities would suggest anything like it.

For starters, we have to consider the way in which Google announces new fiber cities. Its history has been to send out a press release at least a few days out to generate buzz and send invitations to the tech and national press. This is not a company that announced these kinds of projects without a serious amount of fanfare.

Google also has a history of liking to roll its own solutions. One of the ways it got so big so fast was to create servers based on their own custom specs, not buying expensive off-the-self servers. Google Fiber is no different. They seem to relish the idea of starting from scratch and making something uniquely theirs. iProvo would require extensive upgrades to support 1Gbps connections and an entire head-end replacement to support modern MPEG-4 video.

There’s also the point of Google’s tacit support for municipal networks. Swooping in to take over a network would undermine their unspoken support for poking incumbent operators in the eye. Their goal has always been to shame ISPs into providing better service, even if that means throwing them under the bus in favor of municipal options. Taking over a network doesn’t match up with that at all.

The kicker, though, is Google’s terms for setting up shop. So far, Google has set it up so that they can walk away from their network if they decide it’s not for them. That probably sits just fine in Kansas City and Austin where they aren’t really on the hook for much. But Provo? They’ve spent half a decade trying to run away from iProvo. Any deal that doesn’t involve them washing their hands of the network would be anathema to every single action the city has undertaken under two different mayors and a lot of different council members.

Make no bones about it: Provo is not getting the bailout it so desperately desires. Hyping up these rumors does nothing to actually fix the situation, but it does distract from real looming problems like Veracity’s lease of the network expiring in two months. Instead of trying to find a white knight savior, it’s time for Provoans to demand that their elected officials address the elephant in the room instead of continuing to punt.

PS I’ve already told you to stop daydreaming and build the same kind of network that Google is. What are you waiting for?

Where iProvo is Going From Here

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Most of you are already aware that Veracity’s reserve fund for iProvo has reached the point of potentially triggering a default. From the news stories you’ve read, odds are good that you think that Broadweave 2.0 is about to come crashing down on the city. I’ve sat down with Veracity and Mayor Curtis to get the real deal story and I don’t think it’s the apocalyptic scenario that sells papers and glues eyeballs to evening newscasts.

First off, I’ll give you Veracity’s side of things. They went into the network expecting to spend about $2-3M on network upgrades. To date, they say they’ve dropped a good $8M on fixing things up. For that investment, the network can cover both operating expenses and debt service, but there is no money left over for installations, marketing, or network upgrades. Veracity could choose to cross-subsidize the network, but that eats into their budget for expansion. The current strategy has been to try and expand to other markets to leverage the video head end and spread out the cost of the NOC, primarily through building fiber to CenturyLink cabinets, co-locating, and selling services over a U-Verse-like ADSL2+ network. If they pumped more money into iProvo itself, it stunts these growth efforts. It’s a short-term gain for a long-term loss. Neither the city nor Veracity would win under the current scenario.

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Re-writing Reality: Utah Taxpayers Association Spins on iProvo

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It’s almost become too easy to pick on the Utah Taxpayers Association when they get a story so very, very wrong. The latest work of fiction is thacceir tortured stance on iProvo, one in which they perform twists of logic to support how things have unfolded with iProvo and yet continue to vilify what UTOPIA does. As usual, this requires a point-by-point breakdown of where they lack any kind of consistency and twist or invent facts to support their weak sauce arguments.

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Some Realism on iProvo

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Last night, Provo Mayor John Curtis gave an update on iProvo and the city’s continuing involvement with the network and it looks like the city finally has an executive who wants to face facts. The reality of iProvo (or more accurately, the network sold to Veracity) is that revenues still don’t cover bond payments and aren’t likely to do so for quite some time. Veracity has already told me as much and that the single-family home business, which is both difficult and slow to grow, is the only thing left. It’ll probably be a while before revenues can cover the bond, and the payments will have to be cross-subsidized. The question, though, is who will do it.

Veracity has already received a break on payments, a break that runs out in just a few months. I’m confident that they can and will (but more importantly, should) continue to cross-subsidize Provo operations from other divisions of the company. Mayor Curtis’ remarks, though, seem to indicate an expectation that the city generally will have to continue to pick up part of the bond payments. I wouldn’t have much of a problem with this if Provo were continuing to operate the network with a wholesale open-access model, but effectively subsidizing a private company gives me serious pause.

I believe that Veracity is a good company and that they’re not out to pull a fast one on anybody. That said, I wouldn’t blame them for negotiating whatever they can get from the city. It’s the same as Google: “don’t be evil” doesn’t mean you should give up your strong negotiating position out of the goodness of your heart. And right now, Veracity is holding all the cards.

Read the articles from the Daily Herald and Salt Lake Tribune for more.

Mayor Curtis Holding an iProvo Meeting

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And here you thought that everything iProvo had been said or done. Provo Mayor John Curtis will be holding a meeting on economic development on Thursday September 30 which will include a breakout session on iProvo. If you find yourself wondering what’s going on with the network or how (if?) the city is still using it, this is your shot. The public has been invited to participate at the Covey Center for the Arts (425 W Center St) from 7PM to 8:30PM.