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.
Peter Pratt at StimulatingBroadband.com tipped me off that Gov. Herbert has made his recommendations to NTIA and that all three of UTOPIA’s proposals are on the list. This could pump over $57M into the network at a time when capital for expansion is rather difficult to come by. The money could be ready to use as early as February. While this isn’t the final word on which projects will be approved, the NTIA is very likely to go along with the recommendations from the states. The feds didn’t give independent reviewers a lot of time to screen applications before sending them to the states.
The money will be set aside for rural and underserved areas of member cities, so expect to see the money flow into Lindon, Centerville, Payson, Brigham City, Perry, and any leftover portions of Tremonton first. Residents in these cities are very likely to see a sharply reduced cost for an SAA (most likely) or the return of the free install (quite unlikely). Overall, this will mean a big expansion of UTOPIA availability which can only help the bottom line. UTOPIA’s new management will likely have a targeted build plan meant to maximize new subscribers; previously, the building had been willy-nilly.
UTOPIA isn’t the only winner in Herbert’s recommendations. UEN and the UTA picked up endorsements as did several projects from the Navajo Nation. Emery Telecom also got the nod for its three proposals to bring FTTP to its service areas in rural Utah, no doubt to unify its separate CATV and phone systems as part of the upgrade. (Seriously, guys, kudos on being one of the few rural ILECs doing something so ambitious.) There’s also an application to build a community WiFi cloud in Washington County.
As of a couple of days ago, applicants for broadband stimulus funds are now listed on the NTIA’s website. Utah has a number of applicants including the University of Utah, The Utah Transit Authority, and, not surprisingly, UTOPIA.
Several rural ILECs have also gotten into the game including Emery Telecom and Manti Tele Communications. Emery is apparently looking to deploy FTTP to beef up their triple-play offerings and replace their existing HFC CATV network. The finished product would be active Ethernet like iProvo and UTOPIA with up to 1Gbps at each address served. A separate request would use FTTN and wireless to reach more remote areas. Manti, meanwhile, is looking to use WiMax to reach more remote areas that currently do not have broadband service. Both of these projects are good news for Utahns.
Ogden City has also made an application to provide broadband access to government services and underserved residents. There is also an application for what appears to be a city-wide WiFi network. Given their reluctance to join UTOPIA, it’s rather surprising that they have done an about-face on city-provided services. My best guess is that they were holding out for someone else to pay for it.
So what about UTOPIA? They made three separate applications totaling around $54M. The only thing available is a general overview, but the requests appear to be targeted at Orem, Murray, Midvale, West Valley City, Layton, and Centerville. One of them hints at using a special assessment area (SAA) to triple the impact of at least $10.5M of the money applied for. Depending on how fast NTIA can review and approve applications, we may soon know if there will be more money for UTOPIA construction in the near term.
With applicants asking for 7 times what’s available in the first round, it will be interesting to see who makes the cut.