I am not from Utah and don't understand how UTOPIA is financed. Doing some Google searches, I am still in the dark.
But while revenue bonds would not take funds away from other govt services, it doesn't seem like that's the case. I saw several references to additional debt and municipalities pledging sales tax revenues to prop up UTOPIA. I was actually thinking more of federal grant programs like CAF, RDOF and BEAD. And philosophically I like the UTOPIA model of public infrastructure used by any and all service providers. Sounds like it hasn't worked all that well in practice though. ---- Original Message ---- From: "Bill Prince" <part15...@gmail.com> Sent: 4/27/2024 2:57:40 PM To: af@af.afmug.com Subject: Re: [AFMUG] Govt funded fiber - Utopia Bernie Madoff https://en.wikipedia.org/wiki/Bernie_Madoff bp <part15sbs{at}gmail{dot}com> On 4/27/2024 12:47 PM, Chuck McCown via AF wrote: > But I think UTOPIA is supposed to be making the bond payments itself. > The real question is where does the money come from to cover the > shortfall each year. The only other source of money they have is > signing up new cities. If that is how they operate they will > eventually run out of new cities in Utah. I think they are coming > close to running out now. > > Anyone know how to spell PONZI... > > -----Original Message----- From: Bill Prince > Sent: Saturday, April 27, 2024 1:38 PM > To: af@af.afmug.com > Subject: [AFMUG] ***SPAM*** Re: ***SPAM*** Re: ***SPAM*** Re: > ***SPAM*** Govt funded fiber - Utopia > > Bonds are paid (usually, unless specified differently when they were > issued) out of general revenue funds. If the funds used to pay bonds > take away enough, the services get compromised, reduced, or not funded > at all. > > > bp > <part15sbs{at}gmail{dot}com> > > On 4/27/2024 9:33 AM, fiber...@mail.com wrote: >> I fail to see how revenue bonds divert essential funding away from >> services that really matter to the public. >> >> >> Jared >> >> Sent: Saturday, April 27, 2024 >> From: "Ken Hohhof" <khoh...@kwom.com> >> To: "'AnimalFarm Microwave Users Group'" <af@af.afmug.com> >> Subject: Re: [AFMUG] ***SPAM*** Re: ***SPAM*** Govt funded fiber - >> Utopia >> >> Everything’s political now, of course. >> But he does have a point when he says “Government-owned broadband >> networks cost millions of dollars and divert essential funding away >> from services that really matter to the public — services such as >> police and fire, roads, water and sewer.” >> In the past, the government has undertaken vast programs at >> taxpayer expense like rural electrification, the interstate highway >> system, the space program. Now apparently high speed Internet is the >> thing of the moment that takes precedence over all the other broken >> things that we might wish government to fix. I sometimes wonder why >> Internet? Maybe because it seems easy and gives people the power to >> hand out billions of dollars. Could they cure cancer or get lead out >> of drinking water or fix all the deteriorating bridges with something >> like a BEAD program? >> Maybe they think broadband and AI and neural implants will lead to >> a future where everyone is plugged into the network and doesn’t need >> any of those other things. Maybe we’ll all be heads in jars like in >> Futurama. >> >> From: AF <af-boun...@af.afmug.com> On Behalf Of Chuck McCown via AF >> Sent: Friday, April 26, 2024 >> To: Josh Luthman <j...@imaginenetworksllc.com>; AnimalFarm Microwave >> Users Group <af@af.afmug.com> >> Cc: ch...@go-mtc.com; John Brewer <n7...@me.com> >> Subject: [AFMUG] ***SPAM*** Re: ***SPAM*** Govt funded fiber - Utopia >> >> I am surprised they have never broke even. >> >> >> >> >> From: Josh Luthman >> >> Sent: Friday, April 26, 2024 >> >> To: AnimalFarm Microwave Users Group >> >> Cc: John Brewer ; ch...@go-mtc.com[mailto:ch...@go-mtc.com] >> >> Subject: Re: [AFMUG] ***SPAM*** Govt funded fiber - Utopia >> >> >> Article: >> https://www.deseret.com/opinion/2024/04/19/government-internet-service-bad-for-taxpayers/[https://www.deseret.com/opinion/2024/04/19/government-internet-service-bad-for-taxpayers/] >> >> >> On Fri, Apr 26, 2024 at 4:59 PM Chuck McCown via AF >> <af@af.afmug.com[mailto:af@af.afmug.com]> wrote: >> By John Dougall >> >> For the Deseret News >> >> Most Utahns probably agree that government should stick to essential >> government services and stay out of enterprises that are better >> performed by >> the private sector. >> >> Yet, across the country and right here in Utah, more and more >> governments >> are building government-owned internet networks, despite numerous >> private-sector providers being available. >> >> The number of government-owned networks is increasing by the day, and >> taxpayers, not users, are often footing the bill. Government-owned >> broadband >> networks cost millions of dollars and divert essential funding away from >> services that really matter to the public — services such as police and >> fire, roads, water and sewer. >> >> Two unfortunate examples of government-owned broadband networks right >> here >> in Utah are iProvo and UTOPIA. >> >> In 2004, Provo launched iProvo to provide broadband internet services to >> homes and business. Provo reportedly bonded for $36.5 million to bring >> service to every home in the city and wrote off $5.4 million that the >> city’s >> telecommunications fund owed the Energy Department’s reserve fund to >> finance >> the costly deployment. After struggling to make the network viable, >> iProvo >> was sold in 2008. But its buyer failed to fulfill the terms of the >> sale, and >> iProvo reverted back to the city. In 2013, in a desperate attempt to >> free >> itself of the failed venture, the city ultimately sold iProvo to >> Google for >> $1. >> >> Similarly, UTOPIA (Utah Telecommunications Open Infrastructure >> Agency) was >> launched to provide broadband internet services to a consortium of >> cities. >> But UTOPIA has failed to fulfill its promises for more than two >> decades now. >> The project, which started in 2002, was projected to be finished in >> three to >> four years. Fast forward to today, and it is still incomplete. Not >> only is >> UTOPIA incomplete, but the project has racked up $300 million worth >> of debt. >> And despite iProvo’s example of failure, UTOPIA continues to expand. >> >> For years, UTOPIA consistently lost money, expecting taxpayers to cover >> those losses. In addition to this, the government-owned network >> continues to >> expand and pull other cities into this trap. What’s more egregious is >> that >> UTOPIA misrepresented its performance as it pitched cities on buying >> into >> the expansion fever. For example, UTOPIA once claimed the network had >> “no >> cost to taxpayers since 2009.” This statement was patently inaccurate. >> >> As your watchdog, I help you to hold your government accountable. My >> office >> investigated this and other claims, then we wrote a letter >> identifying these >> inaccurate statements. We instructed UTOPIA to do the following: >> >> •Discard or destroy marketing materials with misleading statements. >> >> • Ensure future communications more accurately reflect the dependence on >> taxpayer support. >> >> •Take steps to remedy the misrepresentations regarding the lack of >> taxpayer >> support to any individual or entity that received the inaccurate >> information. >> >> UTOPIA’s shortcomings do not stop there, however. Rather than providing >> internet access to the more than 40,000 homes and small businesses >> that lack >> internet access today, UTOPIA, like other government-owned networks, >> builds >> redundant networks that compete with existing private providers, many >> who >> are also regulated by the cities in which they operate. >> >> Unfortunately, iProvo and UTOPIA are no different from other >> government-owned fiber networks across the country, which fail >> financially >> about 90% of the time. >> >> When taxpayer money is being diverted from critical services into pet >> broadband projects, that money is not going where it is needed most. >> Taxpayers expect government to maintain roads, provide safe drinking >> water >> and keep their communities safe. Money spent propping up broadband >> services >> costs taxpayers money, encumbered by decades of debt, and deprives >> them of >> important and sufficient government services they want and deserve. >> Plus, >> higher taxes burden families, many of whom are struggling today just to >> provide for themselves. >> >> Government-owned broadband has done enough harm to taxpayers. iProvo and >> UTOPIA should be seen as an example for policymakers of what to avoid. >> Public officials across the country, and especially here in Utah, should >> resist the appealing allure of expanding or deploying government-owned >> networks, which allure has been shown to be deceptive, and ultimately >> destructive, to taxpayers. >> >> John Dougall is the Utah State Auditor and is a candidate for Utah’s 3rd >> congressional district. >> >> >> >> -- >> AF mailing list >> AF@af.afmug.com[mailto:AF@af.afmug.com] >> http://af.afmug.com/mailman/listinfo/af_af.afmug.com >> -- AF mailing list AF@af.afmug.com >> http://af.afmug.com/mailman/listinfo/af_af.afmug.com[http://af.afmug.com/mailman/listinfo/af_af.afmug.com] >> > -- AF mailing list AF@af.afmug.com http://af.afmug.com/mailman/listinfo/af_af.afmug.com -- AF mailing list AF@af.afmug.com http://af.afmug.com/mailman/listinfo/af_af.afmug.com
