UTOPIA Sues RUS

I can’t say this is unexpected. UTOPIA has filed a lawsuit against RUS for failing to live up to their contractual obligations under the loan taken out several years ago. The delay in reimbursement caused a lot of strain on UTOPIA vendors, delayed network deployment, and left UTOPIA on the hook for millions of dollars in authorized but unreimbursed expenditures. I’m still waiting for a copy of the court filing so I can see their specific claims, but I would bet that they’ve got a pretty solid case and are asking for a pretty hefty amount inĀ punitiveĀ and actual damages.

The Broadband Stimulus is an Abject and Absolute Failure

I usually spend a lot of time checking my non-broadband opinions at the door. If anyone cares about my political leanings outside of telecommunications, they can find my other blog with great ease. In this case though, I’ve got more than a few choice words for the broadband stimulus and how it has failed to improve anything at all. In fact, I believe it has only made things worse.

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The Non-Story of UTOPIA and Lawsuits

Today’s Deseret News ran an article about UTOPIA’s preparation for some pending litigation, but it’s not really much in the way of news. We all know that UTOPIA and RUS aren’t on each other’s Christmas card lists and that UTOPIA incurred some significant expenses as a result of the incompetence of that federal agency. Negotiations with RUS broke down months ago and UTOPIA was still left holding the bag. At this point, they really don’t have much of a choice but to go after RUS in court since a settlement could not be reached and the damages are in the tens of millions.

UTOPIA obviously can’t confirm nor deny anything at this point, but it’s not hard to read between the lines. The question, though, is why this is being cast in some kind of sneaky and sinister light. Only an idiot would openly discuss pending litigation in a public meeting, much less with members of the press. It’s also not uncommon to have internal agency meetings that don’t require public notice. I would bet that every city, county, state agency, and interlocal agency has done the same.

That said, I can understand why someone would be heavily suspicious. UTOPIA has always struggled with putting information out for public scrutiny. It isn’t helped when the incumbent guns-for-hire Utah “Taxpayers” Association regularly takes what information is public and distorts or outright fabricates negative information about the project.

Basically, there’s nothing to see here that you haven’t already heard through the grapevine. When there’s real news, they’ll probably put out a press release.

What exactly does UTOPIA's press release mean?

After the first read-through of UTOPIA’s press release, I wasn’t entirely sure what they were trying to say. In fact, most of the press release seems to allude to some sort of ethereal plan to bring the network out to 20,000 more subscribers as quickly as possible. Given the financial situation that UTOPIA is currently in, I was left scratching my head. That is, until I read the last paragraph of the press release.

As we all know, UTOPIA doesn’t have any capital to use for expansion. Barring repayment from RUS or getting awarded stimulus money, I doubt there will be spare change rattling around for several years. All of the eggs are currently in the SAA basket since it’s the only way to finance building things out. Part of the problem with the SAA is the execution time required. You have to pick a specific area to be a part of the SAA. If it’s too small, it won’t be financially self-sustaining or require an unreasonably high participation rate. If it’s too large, you could easily spend a couple of years canvassing to find enough participants. Then, after months of finding the people who want service, you have to spend a few more months getting the city council to approve the bond for the SAA, then wait for the money to come in, then, after many moons, finally start digging trenches and laying fiber. It’s a time-consuming process that could be derailed at any time by the saber-rattling of the Utah Taxpayers Association, Qwest, or any number of anti-UTOPIA factions.

Now this is the statement that sticks out:

Under this next phase of growth, the eleven pledging cities would create a new bond and release funds incrementally as demand is demonstrated.

In other words, UTOPIA cities will go ahead and approve the bonds now to get the financial side rolling, then go find and form the SAAs. This not only accelerates the deployment schedule by months, it also allows for much smaller participant areas, maybe even as few as several dozen. That’s great news for residents of member cities who want service but can’t get a couple hundred neighbors to sign up as well. Once you have enough people to jump in, construction could start the next week. It’s the SAA improved and evolved.

If you live in a pledging city, now is the time to go to UTOPIA’s website to register your interest for service. Get your neighbors to do it. And your friends, family, and even that guy down the road with the busted washing machine on his porch. (You never know; he might tune into the DIY Network and get inspired to do something about it.)