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February 24, 2006
And so it begins again…
The City of Provo, Utah, will have to transfer $1 million from its utility reserve to cover shortfalls in the iProvo municipal fiber service, Salt Lake City’s Deseret Morning News reports. Although the project is ahead of schedule in terms of construction, it has only half the 10,000 subscribers its business plan had called for at this point.
The original breakeven point had been December 2005. It has now been reset for August 2007. City officials expect ongoing shortfalls into 2008 that may require additional transfers of up to $2 million.
We’ve heard this all before. Like Provo, most municipal broadband systems fail to achieve anywhere near their projected numbers and must turn to transfers, cross-subsidies or new loans. Most municipalities get so far behind, they can never dig out.
“The people paying their energy bills faithfully are now the ones paying for the iProvo shortfall,” said Councilman Steve Turley, who was assured by [Provo Energy Department Director Kevin] Garlick that the reserves would be replenished when iProvo breaks even.
We’ve heard that one before, too.
iProvo is a city-owned fiber optic backbone and cable TV headend. The city sells bulk bandwidth to itself and to large users. Retail partners market voice, Internet and cable service to residences and small businesses.
That’s the theory, at least. The iProvo shortfall is primarily due to the disastrous performance of HomeNet, the only retail service partner to sign on with iProvo. After barely a year and no gain in customers, HomeNet in July 2005 abruptly closed up shop, leaving iProvo scrambling to find replacements. Veracity and MStar, two local ISPs stepped in. While iProvo’s numbers have been increasing steadily since then, they largely represent a migration of existing Veracity and MStar accounts onto the municipal backbone.
Until now, municipal proponents, including the American Public Power Association, have pointed to iProvo, which launched in mid-2004, as a successful model of municipal ownership. Provo mayor Lewis Billings has been a popular spokesman for the cause in policy circles and has endorsed municipal broadband programs in other cities, including Lafayette, where voters last year approved a $125 million municipal fiber-to-the-home system.
Posted by steve.titch at February 24, 2006 07:10 AM
My mind is like a bunch of nothing, but I guess it doesn't bother me. I haven't been up to anything recently. I've pretty much been doing nothing to speak of.
Comment by: Sten79397 at January 26, 2007 09:52 PM
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I just don't have anything to say. Not that it matters. Eh. I've just been staying at home doing nothing, but I don't care. That's how it is.
Comment by: Sten12424 at January 26, 2007 10:37 PM
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I've just been staying at home waiting for something to happen. Whatever. Not much on my mind lately. I guess it doesn't bother me.
Comment by: Sten73224 at January 28, 2007 09:48 AM
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I just don't have much to say these days, but so it goes. Today was a total loss. I guess it doesn't bother me.
Comment by: Sten54559 at January 28, 2007 04:58 PM
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Not much on my mind lately. My life's been completely boring these days. I've just been hanging out not getting anything done. So it goes.
Comment by: Sten98313 at January 28, 2007 07:58 PM
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I feel like an empty room, but eh. Nothing seems worth doing. I haven't gotten much done today.
Comment by: Sten58503 at January 28, 2007 10:49 PM
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I just don't have anything to say right now. I haven't been up to anything recently, but it's not important. I've just been sitting around waiting for something to happen, but shrug.
Comment by: Sten13539 at January 29, 2007 01:02 AM
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I haven't been up to much today. I've just been letting everything happen without me. Basically nothing seems worth bothering with. I've just been hanging out doing nothing. I just don't have anything to say right now. More or less nothing happening.
Comment by: Sten80005 at January 29, 2007 03:32 PM
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I haven't been up to anything today. I don't care. I've just been staying at home not getting anything done. Basically not much happening right now. Maybe tomorrow. I guess it doesn't bother me.
Comment by: Sten43164 at January 30, 2007 07:43 AM
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retty much nothing seems worth thinking about. My life's been completely dull , not that it matters. I've just been staying at home waiting for something to happen.
Comment by: Sten1650 at January 30, 2007 01:45 PM
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Basically nothing noteworthy happening right now, but eh. Today was a complete loss. I haven't been up to much recently. I've pretty much been doing nothing worth mentioning.
Comment by: Sten65590 at January 30, 2007 05:42 PM
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retty much nothing seems worth thinking about. My life's been completely dull , not that it matters. I've just been staying at home waiting for something to happen.
Comment by: Sten45711 at February 1, 2007 05:31 AM
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I've more or less been doing nothing worth mentioning, but eh. My life's been really bland today. I don't care. I've just been letting everything happen without me these days. That's how it is.
Comment by: Sten13697 at February 1, 2007 12:28 PM
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I've just been staying at home waiting for something to happen. Whatever. Not much on my mind lately. I guess it doesn't bother me.
Comment by: Sten64294 at February 2, 2007 02:05 AM
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I haven't been up to much today. I've just been letting everything happen without me. Basically nothing seems worth bothering with. I've just been hanging out doing nothing. I just don't have anything to say right now. More or less nothing happening.
Comment by: Sten7141 at February 2, 2007 03:43 AM
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I haven't been up to much lately. I've basically been doing nothing , but it's not important. I can't be bothered with anything recently. I've just been letting everything happen without me lately.
Comment by: Sten20365 at February 2, 2007 12:07 PM
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Basically nothing noteworthy happening right now, but eh. Today was a complete loss. I haven't been up to much recently. I've pretty much been doing nothing worth mentioning.
Comment by: Sten45493 at February 3, 2007 12:27 AM
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I haven't been up to much these days. Today was a loss. Nothing seems important. I've just been letting everything happen without me these days.
Comment by: Sten39451 at February 4, 2007 03:19 AM
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Basically nothing seems worth thinking about. I haven't been up to much these days. I just don't have much to say right now. I can't be bothered with anything , but whatever.
Comment by: Sten18063 at February 4, 2007 06:45 AM
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I've just been staying at home not getting anything done. I've basically been doing nothing worth mentioning. My life's been pretty unremarkable these days. Eh.
Comment by: Sten78044 at February 4, 2007 12:04 PM
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Not much on my mind lately. My life's been completely boring these days. I've just been hanging out not getting anything done. So it goes.
Comment by: Sten18363 at February 5, 2007 10:43 PM
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Comments