High placed sources, speaking on condition of anonymity, have confirmed that Veracity has pulled out of the merger with Broadweave and that Sorenson Capital may have withdrawn financial backing as a result. The 60-day delay cited by Broadweave in the papers is rumored to be buying time to find new backers. The loss of Veracity combined with the iProvo NOC employees who have left means that video experience is almost non-existent and staff resources will be stretched dangerously thin. This may account for anonymous commenters who have reported issues reaching customer service over the last several days. When asked about these details, Provo City employees involved in the deal were unaware of the failure of the merger.
The deadline for Broadweave's takeover of iProvo has come and gone without much news or fanfare at all. In fact, other than the phone customers from Mstar, we don't know if any transition has taken place. Neither the Daily Herald nor Deseret News could reach Broadweave for comment and I know that Joe Pyrah has been trying for about a week. Broadweave's website also lacks updates on the current status of the transition. Either one of two things has happened: the sale still isn't finalized or the transfer has gone over so seamlessly that nobody noticed. Anyone care to shed some light on it? (Free tip: when the press is trying to get a hold of you, get back to them quickly. Not responding to a reporter looks really bad.)
Visitor comments on the phone switch have been mixed. One commenter reported a significant degradation of call quality after the switch and blames Veracity's phone switch, one that he alleges to have had problems for a long time now. On the flip side, multiple comments have indicated that customer support is substantially improved and it's easy to reach someone with questions via phone or e-mail, certainly an area where Mstar received a lot of harsh criticism. Certainly the ability to accomplish the emergency port of 1200 numbers was impressive.
I think the real test of the transition will be when the video customers are cut over. Four of the iProvo NOC technicians left prior to the sale being finalized and Veracity is primarily in the voice and data business. Broadweave doesn't bring a lot of in-house video experience to the table either with just a small pilot operating in the Sienna Hills subdivision of Washington City. A lot of complaints about the system video centered on advanced features such as VOD, HDTV and DVR, areas where rapid improvement will need to be made.
Comcast has already been attempting to capitalize on the uncertainty of the transition and if they can push those missing features via their own products, don't doubt that they will. Several commenters have reported receiving promotional offers in the mail pushing triple-play with a DVR for $70/mo for 6 months. Ads have also appeared in the Daily Herald to entice business-class customers, the most lucrative accounts, into switching to Comcast. Given the lack of notice from Broadweave about the switch and the somewhat confusing pricing information concerning package pricing, Comcast may have a winning bet with their FUD campaign.
As usual, any comments that fill in the gaps or relate user experiences are appreciated.
In an unbelievable move, around 200 Mstar customers on iProvo have been without phone service since Friday after New Global Telecom, the VoIP provider that Mstar uses, cut them off. NGT claims that Mstar is behind on their payments for iProvo customers and that UTOPIA customers are not affected. John Hansen, Mstar's interim president, says the claims of non-payment are bunk and blames the problem on iProvo customer service staff.
Broadweave managed to do an emergency transition of most of the affected customers to their network but it is still struggling with the last 200 or so. Phone customers are still able to receive calls and place 911 calls, according to NGT. Customer experiences have been mixed with some reports that the customer service lines are busy and others saying that they've been able to get through. For some odd reason, Broadweave's PR consultant has stated that they're waiting for the affected customers to call them to get the issue sorted out instead of aggressively trying to contact those customers.
While this problem isn't Broadweave's creation, it's their baby now. Mstar doesn't have much incentive to make sure the transition is a smooth one and can easily put egg on Broadweave's face by dropping a problem in their lap that they don't quickly resolve. It makes you wonder how many customers will unbundle services even if it costs more money to do so.
NGT also claimed in their statements that Mstar would be selling off the phone customers on UTOPIA to another provider. Obviously, UTOPIA can't comment one way or the other and there's nothing from Mstar to confirm or deny that claim. Any insiders want to clarify this in the comments?
(Read more from the Daily Herald. h/t: Capt. Video and Thomas Perry for sending along the stories.)