Category Archives: Jeers

Bad news.

Dispelling the Rumors: Prime Time Isn't Going Under

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I’ve had several people now express concern over recent bankruptcy filings in other states by Prime Time Communications. More than a few people seem to be dedicated to fear-mongering that the entire company is about to fold. Unfortunately for the rumor mill, that’s entirely untrue. Here’s what’s really happening.

When a construction company starts a new housing development, the first thing they do is file a brand new LLC to isolate it from the rest of the company operations. This is to help prevent any liability from one project spilling over into other projects. In case one development fails miserably, the parent company can fold the single LLC without damaging the rest of the company. It’s pretty standard (and smart) practice.

Prime Time Communications does the same thing. When they contract to provide service to a new greenfield community, they isolate the operations into an LLC in case the housing project doesn’t quite pan out. Unless you’ve been living under a rock for the last two plus years, you know that the housing market is, uh, “underperforming” (read: it crashed). Naturally, some of the projects that Prime Time was working on were in that mix. Rather than continue to incur losses on housing projects that had failed, the parent company chose to fold those LLCs through the bankruptcy process. So far, this has had no effect on the parent company or on any of the unrelated LLCs, including the one that provides service on UTOPIA.

Now someone out there seems to have an agenda in mind to confuse the facts and omit some of these critical parts of the story. If it’s you, knock it off. FUD doesn’t help anyone.

UTA Threatening to Sue UTOPIA and Brigham City

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Hot off of their misinformation campaign to residents, the Utah Taxpayers Association is now rattling their legal sabers at UTOPIA and Brigham City over the Special Assessment Area (SAA). The UTA is claiming that participants were deprived of due process because the terms were not explained properly and that there wasn’t a public hearing. These claims, however, are a matter of pure fiction. Many of the comments I’ve read indicate that the terms were explained and paper copies of the agreement provided via mail by the city. The initial meeting held in November to form the SAA was a public hearing and was well-attended.

What’s interesting, however, is that it was Qwest that initially filed FOIA requests with Brigham City to see the terms of the SAA, yet the UTA is the one making legal threats. My suspicion is that, after getting their butts kicked in court, Qwest wants to use the UTA as their proxy in these fights. The UTA refuses to disclose how much money individual members contribute or what influence any members exercise, ironic considering that they are protesting that there hasn’t been enough sunshine in the process.

The most galling part isn’t the lying and misrepresentation. At this point, it appears to be par for the course. No, what irks me the most is the UTA characterization of Brigham City residents as simple-minded fools just waiting to be duped by the first slick salesman that appears on their doorstep. I’ve met many residents and city employees from Brigham and I can tell you with complete certainty that they’re no dummies. They go to city council meetings, read the papers, and get informed on issues in a way that I wish their urban counterparts would consider trying out. (Seriously, I’ve found rural voters to be some of the sharpest tacks out there, especially when it comes to local politics.) How the UTA thinks it can simultaneously insult the intelligence of and purport to represent taxpayers is beyond me.

Utah Taxpayers Association Uses Fear, Uncertainty, and Doubt Ahead of Brigham City Vote

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The City Council in Brigham City will be holding a final vote on the UTOPIA SAA on Thursday December 10 at 7PM. This vote will determine if the SAA will move forward or not. Ahead of this, the Utah Taxpayers Association has decided to start up a campaign of disinformation to try and get residents against it. The following mailer was sent out to all residents of Brigham City (no doubt at a considerable cost to the UTA).

UTA Postcard Side A

UTA Postcard Side A

UTA Postcard Side B

UTA Postcard Side B

In their usual style, it purposefully misrepresents the SAA and plays loose with the facts. Here’s a few highlights.

  • Before UTOPIA came to town, private companies would not invest in Brigham City. Both Comcast and Qwest refused to provide broadband service to residents despite repeated requests from the city to do so. After Brigham City joined UTOPIA, both companies started to roll out services. Chasing away private capital indeed.
  • Sure, your house could be sold at a foreclosure sale if you fail to pay your part of the opt-in SAA. The same thing happens when you fail to pay your property taxes, your mortgage, or any other expense associated with owning a house or taking a loan out against it. Yet, for some reason, the UTA doesn’t seem to think those items are unfair. Nice spin, guys, but not paying your bills will, surprise, result in consequences. No duh.
  • The UTA has purposefully inflated and misrepresented the city’s share of the expenses associated with the SAA. Brigham City has chosen to pay to hook up all city buildings with UTOPIA service. That accounts for well over half of the money the UTA is talking about and provides a legitimate service to the city. It is also entirely unknown what costs, if any, the city will have to carry for the bond to go through. This is because it depends entirely upon the number of people who sign up. Unless the UTA has some kind of magic crystal ball that I don’t (which I seriously doubt), they’re just making crap up. Again.
  • The UTA is actually calling it a negative point that you’re paying $25 and don’t get service included at that price. I hate to break this to them, but there isn’t a provider on earth that would provide even a single part of a triple play for just $25/mo., at least not without line subsidies (like Qwest and the USF). This is just a nonsensical argument. It’s like complaining that the taxes you pay for roads don’t include a car.
  • The UTA also points out that the money from the sale of your home will be used to pay off the costs of the SAA. Again, duh? What, does someone expect that the bond magically disappears because you sold your house? It’s another nonsense argument.

The flier is nothing more than a pathetic attempt to derail a project with significant community involvement and backing. The UTA isn’t looking out for taxpayers; they’re covering for their members. Let Brigham City’s residents spend their money how they want to, m-kay?

Et tu, Frontier? Incumbent Caught Sabotaging Installs in Tremonton

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Hey Frontier? Remember how a Comcast contractor got that company some very unwanted public attention for screwing up installs? That means that your guys should try and avoid to do the same thing. I’ve gotten a report that several UTOPIA customers in Tremonton recently had their ATA for phone service hosed after a Frontier tech reconnected service without the customer’s authorization. The voltage from the line caused problems both making and receiving calls and required replacement equipment. The evidence? Previously disconnected lines from the ILEC had been reconnected to the building wiring after UTOPIA attached its line to the building wiring. That’s a piece of the NTI that only the phone company has access to.

Not only am I pretty sure that this kind of behavior is illegal, it’s also dangerous. What if these customers had needed to call emergency responders? You guys have much more important things to concentrate on anyway (like your impending bankruptcy after buying up those rural Verizon lines).

Comcast Reportedly Stealing UTOPIA Signs in Brigham City

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I just got word that several witnesses have spotted Comcast salespeople stealing UTOPIA yard signs in Brigham City. Undoubtedly Comcast will try and distance themselves from the actions of their employees. Some of their contractors have already gone so far as to disconnect their competitors’ service to drive sales, so I suppose this doesn’t come as much of a surprise.

You stay classy, Comcast.

Yes, BTOP is Broken

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Geoff Daily recently took BTOP out to the woodshed over its glacial pace, poor oversight, and severe underfunding. Today, I got some personal confirmation that BTOP is likely entirely broken and won’t accomplish much, at least not on this first round.

Way back on September 17, I sent the following e-mail:

Hello,

I’m curious to know what state entity will be responsible for reviewing BTOP
applicants and applications, specifically in the state of Utah. Please
advise.

Just today, I get the following response:

Thank you for your interest in Broadband Technology Opportunity Program (BTOP). The BTOP application process encourages collaboration with the states in order to identify and fund the best possible broadband projects in America.  A representative from a state may contact an applicant to request additional information contained in the application because of the state’s interest in making a recommendation to NTIA. Promptly replying to a state’s request allows the representative to carefully consider applications before commenting to NTIA.  As a reminder, all Round 1 grant awardees will be determined by the end of the year.

Again, we appreciate your interest in the BTOP program to help bridge the technological divide and create jobs by expanding access to broadband throughout the nation.

Best Regards,
BTOP Team

There’s a few very glaring problems with what just happened here.

  1. The response is a canned form letter with no relevance whatsoever to the question asked.
  2. The response came 5 weeks after the original e-mail was sent.
  3. There is no longer an opportunity to communicate with the relevant persons at the state level because the deadline for their review has now passed.

Is this really the best that the NTIA can do? If so, I doubt we’re going to see any kind of meaningful federal effort to improve telecommunications infrastructure in this country.

Qwest's Sneaky Stimulus Play

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From reviewing the list of stimulus applicants, you’d think Qwest decided not to partake in the feeding frenzy. Think again. Instead of applying directly, Qwest chose to allow an intermediary to make the application, an intermediary that would then spend the money on Qwest infrastructure and services. I’m referring to the applications from the University of Utah.

You may think hey, what does the U plan to do with Qwest? The reality is that the application from the university was on behalf of UEN. UEN contracts with several companies to build and operate 10GbE and 1GbE links to educational facilities, but the lion’s share of the money goes to Qwest. Should the application get approval, it is nothing more than a hand-out to Qwest to build a network with taxpayer dollars and charge their normal exorbitant rates for service with no real strings attached.

I hope that whoever is reviewing NTIA applications at the state level sees right through this ruse.

Layton Languishing: No New UTOPIA Construction for 1-2 Years

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I received word from a reader that an engineer with Layton City has indicated that new UTOPIA construction in the city will be on hold for at least a year, possibly as long as two years. That’s right, up to two years without the men in work boots, that’s is going to retard progress. The existing fiber will be served, but new installs will now entirely depend on either developers or members of a special assessment area to foot the bill. The city blames the slow economy and lack of federal funding for the halt in construction. Given that the first tranches of broadband stimulus funding from the feds is meant for rural and underserved areas, I wouldn’t count on any federal assistance to get things moving anytime soon.

(h/t: Dan Langford)

Egg on MY Face: UTOPIA is likely to ask for pledges after all

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A month ago, I laid into the UTA and Rep. Craig Frank for claiming that UTOPIA could call bond payments this year. As far as I knew, the financing plan would not allow for UTOPIA to call any pledges until next year when the first payment came due. Now it looks like I’m the red-faced one as UTOPIA has confirmed that it plans to ask cities to chip in this year.

Apparently UTOPIA was only able to secure a variable-rate bond as part of the refinancing deal and was unable to convert it into a fixed-rate one. That’s not surprising given that credit markets were running a bit dry, but it is unexpected since that little detail never seemed to come up. Barring a sudden large increase in subscriber revenue, this has left UTOPIA short anywhere from $50K to $300K a month because of increased interest rates. The article didn’t reveal if that is the only shortfall in bond payments or not, but they are covering operating costs.

I’m especially upset because UTOPIA didn’t tell me that I was wrong after I published my lambasting. And I ended up finding out this morning by reading the article in the DesNews instead of getting any kind of head’s up. The lack of information available to the public is bad enough, but leaving your loudest supporters hanging out to dry just won’t fly.

Sale Fail: Provo Considering Contingencies for iProvo

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Found a nice little tidbit buried at the end of a story on Provo’s financial difficulties. Apparently the city is already preparing for the worst case scenario of getting the network back as Broadweave has depleted half of the reserve fund to make bond payments. Given that Broadweave is likely to lose a large chunk of reliable revenue from Traverse Mountain should they get booted out, my money is on the network being back in city hands by next year. Anyone want to give odds on this?