UTOPIA Finally Putting Gas in the Marketing Engine

By way of Paul Rolly’s frequent gossip column, it’s come to light that UTOPIA has been soliciting bids for doing a marketing campaign. One of the biggest problems that UTOPIA has had with getting new users signed up has been a lack of information about availability and benefits of the service. The plan to date was always about getting providers to take care of the marketing, but the only one doing a major push was Mstar who rapidly burned through cash, did a crash-and-burn, and left a sour taste about the network in subscribers’ mouths.

I’m glad UTOPIA is going to take marketing seriously, but like so much that they do, details are sparse at best. Maybe the next thing they can tackle is opening up a bit.

Provo is Serious About a Plan B

An anonymous tipster pointed out that Provo is currently soliciting Requests for Qualifications for iProvo. The RFQ itself is very specific in stating that while it’s looking for companies who could take over the network, nothing in it should be construed to imply that the city actually anticipates getting the network back at this time. Based on Veracity’s particular situation, I’d be disinclined to believe otherwise.

So what does it mean? I’m guessing that the city doesn’t want to be caught unprepared yet again (*cough*HomeNet*cough*Mstar*cough*Broadweave*cough*) should the worst happen. One bitten, twice shy. If you think your ISP has the chops to take it over should the need arise, you’ve got until February 28 to get your name on the list. For what it’s worth, I’ve asked Veracity if they had anything to add, but I haven’t heard back from them yet. If/when I do, I’ll be sure to add it up here. I’d imagine, though, that this story is about as cut and dry as it seems.

Read the RFQ for yourself: Telecom_Network_RFQ_Final

More federal dollars for UTOPIA?

I just read today that Tremonton and Perry could see upwards of $1M to fund UTOPIA expansion. It would be as part of an earmark from Sen. Orrin Hatch to expand distance learning and telemedicine programs. In such small towns, those grants would probably finish Tremonton (about 95% done) and complete a big chunk in Perry.

h/t: Nacilbupera. He/she/they may not like UTOPIA, but they deserve some credit for finding the information.

What Happened to Prime Time, Straight from the Horse’s Mouth

When the Salt Lake Tribune published their story as to what’s going on with Prime Time Communications, they noted that they were unable to reach anyone for comment. Yours truly, however, scored a 40-minute phone interview with Bryon Wentzlaff, one of their VPs. From the sounds of things, it’s just one more example of why telecom is a tough business to break into no matter who you are. Prime Time hit a point where they were not making money and didn’t project doing so for the foreseeable future.

Continue reading

Prime Time Goes the Route of MSTAR

Looks like I’m a little late to the reporting party, but better late than never: Prime Time is getting booted from UTOPIA. Apparently the company filed bankruptcy for the MSTAR subsidiary on September 3 after having pulled $2.2M out of itmonths earlier. (Yeah, I’m not sure where the money came from either.) This is after several of their other developments did the same earlier this year. Customers started losing phone service not long after that filing. After racking up $1M in unpaid bills (sound familiar?), UTOPIA wants to kick Prime Time and customers are being advised to seek other service providers.

With how heavily the company depended on private developments and how much work had to be done to fix the badly-tarnished MSTAR brand, this isn’t too surprising. The upshot is that with over a dozen other providers and at least a few offering video, nobody is entirely out in the cold.

Salt Lake Tribune Employs Cable Industry Shill to Review UTOPIA Plan

The Salt Lake Tribune ran an article today about UTOPIA’s new business plan in which a Mr. Ron Rizzuto continually discounted it. The article cites that Mr. Rizzuto is a professor at the University of Denver; this is true. What is omitted, though, is much more telling. Mr. Rizzuto is a senior fellow at The Cable Center, an organization funded by the cable industry. Not only that, Comcast’s Executive Vice President, David L. Cohen, is a member of the organization’s board.

It’s not surprising that a cable industry shill would attempt to trash UTOPIA in the press. It’s not even surprising that he would attempt to portray himself as a dispassionate and disinterested third party. Both of these have been done time and time again, like when Heartland Institute’s Steven Titch did consulting work for Qwest and claimed it had no bearing on his harsh criticisms for iProvo and UTOPIA. If anything, I automatically expect some kind of conflict of interest to emerge from parties opposed to UTOPIA as so many of them will always act in their own financial best interests. (Utah Taxpayer’s Association, I’m looking at you.)

What is surprising, shameful, and downright embarrassing is that the Salt Lake Tribune didn’t spend the entire 2 minutes on Google required to find all of this out. Even if they did, they chose not to disclose it in their article. One of two things happened: they were either negligent in their journalistic duties or (and this is more likely) they are continuing to advance the position of the editorial board that UTOPIA cannot succeed. Whichever it is, I am deeply unimpressed.

UTOPIA Adds New Service Providers; Another on the Way?

I popped on over to the UTOPIA website today and found that they’ve added two new service providers: 1Wire Communications and InfoWest. I don’t know a lot about 1Wire, but I do know that InfoWest is a well-regarded CLEC in the St. George area. Both companies will be providing voice and data services to business customers. 1Wire also offers a hosted PBX service similar to Telesphere. It would be nice, though, if more of these companies would open up to residential customers. It seems like it’s been a while since a new residential provider busted onto the scene.

That may change, however. I heard a rumor that Beehive Telephone, a rural ILEC in Utah and eastern Nevada, is considering joining UTOPIA to extend their reach. I remember that they’ve previously had some harsh words for UTOPIA, so this would be a major turnaround for them. Personally, I think it’s a smart move for any ILEC, rural or not, to use UTOPIA to extend their reach without having to invest in more network. You may remember that Emery Telecom was considering joining iProvo many moons ago but later backed out.

Some Realism on iProvo

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.

Orem City Manager Jim Reams Passes Away

Those of you who have been following UTOPIA for some time will recognize the name Jim Reams. As Orem’s City Manager and the city’s UTOPIA board member, he was instrumental in pushing the 2008 bonds forward and was gracious enough to arrange meeting space for myself and other UTOPIA supporters in Orem. Every interaction I had with him was unfailingly pleasant and he was an all-around good guy. I was saddened to learn this morning that he passed away last night of an apparent heart attack at just 53. Whoever takes his place has some mighty big shoes to fill.

You can read the articles at the Daily Herald, Deseret News, and Salt Lake Tribune.

iProvo, the Media, and Fake News

Both the Salt Lake Tribune and Daily Herald have run articles about closed-door meetings between Provo Mayor John Curtis and members of the municipal council. These meetings included only a few council members at a time so as to avoid the requirement to hold open meetings. An e-mail from the mayor indicated that these meetings were to discuss a “plan B” for iProvo. There’s just one small problem: Veracity (or at least the C-level executive there I talked to) apparently had no idea the meetings had taken place until I called to find out what’s up.

I have a number of problems with this, not the least of which is the environment of fear, uncertainty, and doubt that this creates. You may recall that Provo had to have a number of meetings in the midst of Broadweave’s impending default to figure out what to do prior to the network being handed back to the city in worse shape than when it left. You may also recall that I had copious amounts of sharp criticism for Broadweave, all of which was based on the company history (or, more  precisely, the lack thereof), hearsay about the internal disfunction at the company, and confirmations that they had to continue to use a line of credit to continue making bond payments. In this case, Veracity is a company with a solid reputation, no reportable internal strife, and a healthy cash flow from other operations. In short, there is little evidence from that side that any kind of network trouble is in the works at all.

Unfortunately, the refusal to discuss the “plan” B and how likely or, in my belief, unlikely it may be in a public venue combined with a media tendency to puff up bad news (love you guys, but you do it way too much) has combined to create nothing more than a cloud of unfounded speculation and innuendo. While Broadweave was always tight-lipped about operations, Veracity has been very open with me and has pretty bluntly stated what they’re doing with the network: cross-subsidizing it while pursuing the only customers really left, the single-family homes. Given their strong presence in other markets, I don’t doubt their capability to do so. Selling millions of minutes of voice a month is much more stable than a thousand double-play customers in an insulated (and competition-free) housing development.

This kind of pessimistic journalism, while no doubt backed up by experience, is not new. UTOPIA regularly faces one-sided stories and unrebutted opinion pieces in all of the major dailies. The only paper that consistently seems to take their job of presenting all facts seriously has been The Davis County Clipper. This is simply unacceptable. There are a lot of people depending on the newspapers to get the story straight the first time, even if it means pushing back the deadlines so you can track down and talk to other sources.

(For the record, I actually agree with Royce Van Tassell on something: more open meetings are a Good Thing. I’ve been hounding UTOPIA for the better part of two years to toss more data out in the public. Provo shouldn’t resort to so much secrecy.)