True, but it would be nice to have the real, up to date data and projections on all the projects.
Jared > Sent: Monday, August 07, 2017 > From: "Chuck McCown" <ch...@wbmfg.com> > To: af@afmug.com > Subject: Re: [AFMUG] OT Municipally funded ISPs > > Well in the case of UTOPIA, it has been running a long time. And the > numbers are regularly published out here. It is a financial mess for > certain. Not much wiggle room in the facts of the situation. > > -----Original Message----- > From: fiber...@mail.com > Sent: Monday, August 07, 2017 1:50 PM > To: af@afmug.com > Subject: Re: [AFMUG] OT Municipally funded ISPs > > I've also read rebuttals and critiques of that same report, all without > adding too much clarity to the issue. For sure the report has some > shortfalls and errors, but the whole thing is turning more or less into a he > said, she said mess. It'd be real nice to have a proper long term analysis > using up to date hard data from an independent source. > > Jared > > > Sent: Monday, August 07, 2017 > > From: "Layne Sisk" <la...@serverplus.com> > > To: "af@afmug.com" <af@afmug.com> > > Subject: Re: [AFMUG] OT Municipally funded ISPs > > > > Here is the study: > > https://www.law.upenn.edu/live/files/6611-report-municipal-fiber-in-the-united-states-an > > > > Layne Sisk > > ServerPlus > > 801.426.8283, ext 102 > > > > > > > > > > > > > > -----Original Message----- > > From: Af [mailto:af-boun...@afmug.com] On Behalf Of Chuck McCown > > Sent: Monday, August 07, 2017 10:17 AM > > To: af@afmug.com > > Subject: Re: [AFMUG] OT Municipally funded ISPs > > > > iProvo sold out (gave the system away) to Google. Still substandard. > > > > -----Original Message----- > > From: fiber...@mail.com > > Sent: Sunday, August 06, 2017 11:01 PM > > To: af@afmug.com > > Subject: Re: [AFMUG] OT Municipally funded ISPs > > > > That's interesting. Can you share more details about being a service > > provider on the iProvo and AF networks? In what way we're they > > substandard? > > > > Jared > > > > > Sent: Monday, August 07, 2017 > > > From: "Sterling Jacobson" <sterl...@avative.net> > > > To: "af@afmug.com" <af@afmug.com> > > > Subject: Re: [AFMUG] OT Municipally funded ISPs > > > > > > I agree with that. > > > > > > The numbers never added up. iProvo never added up, Utopia never added > > > up, Amercian Fork system numbers never made any sense. > > > > > > I was a network provider on iProvo and AF networks for a while and > > > sold them off since they were always substandard and profit was driven > > > to minimum. > > > > > > > > > -----Original Message----- > > > From: Af [mailto:af-boun...@afmug.com] On Behalf Of ch...@wbmfg.com > > > Sent: Sunday, August 6, 2017 10:46 AM > > > To: af@afmug.com > > > Subject: [AFMUG] OT Municipally funded ISPs > > > > > > Here is an editorial in the Deseret News today. It is just an opinion. > > > > > > And I know Roger has been a reader of this list (Roger runs UTOPIA). > > > > > > But I have always been against municipal ISPs on principle. Some > > > things the government is good at, some things they are not good at. > > > > > > Roads and Streets == OK > > > Police and Fire == OK > > > EMS = OK but there are private providers that are OK too. > > > Water and Sewer = OK but there are many private systems Power and Gas > > > = Meh - I work in a city that has sold off their power and gas to > > > private because it was not a revenue center and they had lots of power > > > distribution problems. > > > > > > Telecommunications != OK > > > > > > They almost always seem to be problematic. And they compete with all > > > of you > > > (us) folks that can do a better job. (Sorry Roger, but that is my > > > opinion). > > > > > > > > > BY BILLY HESTERMAN > > > > > > FOR THE DESERET NEWS > > > > > > A longstanding principle of the Utah Taxpayers Association is if a > > > service can be found in the yellow pages, then government shouldn’t be > > > providing it. > > > We have seen far too many times where government attempts to compete > > > with the private sector and ends up wasting taxpayer money. One prime > > > example of this is the failed UTOPIA boondoggle that continues to > > > plague the 11 cities that created the entity. > > > > > > On Aug. 14, the Utah Infrastructure Agency, which was created in 2011 > > > to give UTOPIA more borrowing capacity, will vote on taking out a $13 > > > million bond to further build out the UTOPIA network in hopes of > > > making the whole effort profitable. The vote will likely pass but the > > > effort to make UTOPIA and UIA a success for taxpayers will never be > > > realized. > > > > > > This attempt to continue to send money after a bad idea has to stop. > > > > > > The private sector is already providing the same service that can be > > > obtained through UTOPIA and it is past time that the local governments > > > that created this mess find a way out. > > > > > > Recently, the University of Pennsylvania released a study that > > > examined 20 municipally owned fiber networks from across the nation; > > > UTOPIA was included in the study. > > > > > > The report found that a majority of these networks struggle to recover > > > the costs that were incurred to build them. It went on to show that of > > > the 20 projects, only nine have had a positive revenue stream but that > > > of those nine, five are generating returns so small that it would take > > > more than > > > 100 years for the project costs to be recovered. Only two of the 20 > > > networks are expected to earn enough to cover their project costs > > > during the useful life of the networks. > > > > > > The Penn report went on to state that these government-owned ventures > > > struggle to ever make a profit and put taxpayers in danger of seeing > > > their local government increase debt, lose bond rating status and > > > elected officials becoming distracted from other important issues > > > because they are solely focused on the government’s fiber business. > > > The report found that if UTOPIA continues in its current state, that > > > the project will likely never turn a profit. It observed in a > > > five-year span from 2010-2014 that the network only obtained 11,000 > > > subscribers and that with a low subscription take the network was > > > realizing less than $30 in revenue per household in the cities that > > > make up UTOPIA. That is well below the $446 per household benchmark > > > achieved by other projects that the report looked at. > > > > > > I am often asked why the Utah Taxpayers Association cares so deeply > > > about the UTOPIA issue. One statement from the Penn report sums up why > > > we have taken the position we have as the report states, “Many cities > > > managing these projects have faced defaults, reductions in bond > > > ratings, and ongoing liability, not to mention the toll that troubled > > > municipal broadband ventures can take on city leaders in terms of > > > personal turmoil and distraction from other matters important to > > > citizens. City leaders should carefully assess all of these costs and > > > risks before permitting a municipal fiber program to go forward.” > > > > > > The risks and consequences are too much for taxpayers to shoulder. > > > > > > UTOPIA and UIA officials should vote against the upcoming $13 million > > > bond and start looking for new directions to take the network that > > > will be beneficial for taxpayers instead of continually investing > > > money into a sinking ship that will never be sea-worthy. > > > > > > Billy Hesterman is the vice president of the Utah Taxpayers Association. > > > > > > > > > >
