Fuzecore leaves UTOPIA, Xmission steps in

I’ve received final word that Fuzecore has decided to leave UTOPIA and has sent its customers over to Xmission. Part of the problem for the Idaho-based provider is that there just weren’t enough customers available on the network to make things work, the same problem Prime Time Communications found itself in. Xmission has graciously provided those customers with a month of free service during the transition and will honor all existing pricing arrangements, though in some cases customers have been bumped up to a higher speed at no extra charge. I applaud Fuzecore for making sure its customers are well-served on the way out the door and leaving with class. Tim McClanahan has always been open with me about what they’re up to and how they’re doing and I’m sure he’ll continue to do well back in Idaho.

Personally, I don’t think the network can sustain a large selection of providers in its current state. The slices of pie get just a bit too thin to make things work, especially with such a large service area to cover. I’m expecting the provider market to pare down to Xmission, Veracity, Brigham.net (though in a limited footprint in Brigham City) and a handful of commercial-only providers. Nuvont has been slowly dying for some time now and is rumored to be down to a scant two employees running the company. I’ve been watching ConnectedLyfe’s filings with the SEC and they continue to bleed cash on an ambitious plan to stream video that I honestly don’t think content companies are ready to embrace. Their last SEC filing in November shows $84K in revenues with $1.2M in losses. Unless there’s an investor with deep pockets or some major breakthrough with a major content company, they are not long for this world.

Honestly, I don’t think all of this is necessarily a bad thing. I’d rather have a handful of excellent and profitable providers than dozens of them waiting to see who dies first. If UTOPIA can get the network construction rolling again (seriously, guys, this is taking forever), maybe some of them will come back and give it another go. For right now, this is probably what’s best for all involved.

A Better Way to Find UTOPIA Coverage

One of the long-standing complaints with UTOPIA has been a lack of data and, to be honest, it’s a fair criticism (and one I share). At the top of the list is trying to figure out just where the heck service is actually available. Thanks to the Utah Broadband Project, we now know. Just select UTOPIA from the list of providers and you’ll know which census blocks the service is actually available on. Naturally, it doesn’t mean that every house has an existing connection, but it gives you a much better idea than just “somewhere in the city”.

UTOPIA on the Way to Centerville

Yeah, I know, you’ve heard it before. This time, though, UTOPIA has a sack full of federal dollars to financing building out the middle-mile infrastructure in Centerville. Does this mean service in your neighborhood? Not entirely. The construction will get as far as the substations in the city, but getting it into your house means getting enough of your interested neighbors to sign up for service via the new UIA plan.  Jog on over to UTOPIA’s interest form and get your name on the list to be notified if/when they’re ready to build out your neighborhood.

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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.

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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.

Utah Taxpayers Association Spews More Lies

Several UTOPIA member cities are gearing up to start taking votes on the new Utah Infrastructure Agency designed to help fund new construction of the network. The Utah Taxpayers Association is trying to get people to show up at these meetings to protest the UIA and try and kill it. In their effort to do so, they continue to distort, twist, and outright lie in their efforts to rile people up.

First off, the UIA bonds are not an unconditional loan. They are funds that will be secured by payments from subscribers. If there aren’t enough subscribers to secure repayment, the money doesn’t get touched. You would think that such an arrangement would be acceptable to an organization that purports to represent taxpayers as it clearly shifts the burden from the taxpayers as a whole to the subscribers. Attempting to characterize the UIA as a big grab-bag is a big lie.

Secondly, the UTA says that UTOPIA is running a $20M deficit in “operating expenses”. The problem, however, is that their version of “operating expenses” is entirely unclear. I’m betting that they chose to include equipment depreciation and possibly even the bond payments in that figure in order to paint a much more dire picture than actually exists. For all of the accusations by the UTA that UTOPIA doesn’t disclose enough information, it’s hypocritical and extremely irresponsible of them to distort the numbers for the purposes of supporting their arguments.

Remember the last time the UTA tried to organize an anti-UTOPIA protest? UTOPIA and its supporters showed up and ended up turning half of the attendees into subscribers. Let’s show them it can be done again. Centerville meets tonight (October 19) at 7PM, Orem is October 26 at 6PM, and Payson is October 27 at 6PM. All meetings are at the respective city hall. Let’s show the UTA that lying won’t get them very far.

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.

Utah Broadband Provider Summit Wrap-up

This morning, I went to the Utah Broadband Provider Summit at the Salt Lake City Public Library to see what the state will be doing in regards to broadband mapping in Utah. There was a lot of good discussion, but I left feeling like as smart as the people in charge may be, they’re not entirely equipped for the enormous task ahead of them.

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