On Fri, Jun 5, 2009 at 2:15 PM, Robert LeBlanc<[email protected]> wrote: > The Provo fibre network was sold off because poor business management was > not able to pay the bonds. Broadweave purchased the entire network including > the customers from Vericity and Mstar. I was afraid that with the lack of > direct > competition that Broadweave would be worse than Comcast. This however has not > been the case,
It's actually more of a rent to own agreement. Broadweave is supposed to be paying $277k monthly on Provo's existing bonds with a bit of extra money going into Provo's coffers. Once the bonds are paid off in 18 years ($66 million to pay off 39.5 million for the build out), Broadweave will own the network. If Broadweave fails to pay, Provo can foreclose on their interest and hook the network up to another provider (if their contracts were written correctly). Although I don't know the status of the build out and availability (supposedly completed in 2004 to all legacy Provo developments), iProvo exists and is considerably more available than all the "under construction" Utopia cities which aren't receiving new availability($1000 for hookup ain't cheap), let alone the future Utopia cities which are on track to never be built. While not an ideal open network, Provo's privatized network is better than no fiber. And at the current rate of nonpayment on Broadweave's monthly bills, it could be Provo's again within a couple of years years after Broadweave burns through its $6 million security deposit. Amazing how they could only afford the first 2 months of payment. refs. below Scott K. "Broadweave opts to use deposit for iProvo payments Date: March 24, 2009 Provo » When Broadweave Networks bought the troubled iProvo network, it agreed to pay the city $277,505.55 a month for the next 19 years. However, despite assurances from Broadweave representatives that the company has turned around iProvo's fortunes, the company hasn't made its payments since November. Instead, the city is pulling the payments from the $6 million surety deposit Broadweave posted as a condition of the sale. And David Moon,... Author: Donald W. Meyers The Salt Lake Tribune Word Count: 511 Publication: Salt Lake Tribune, The (UT) Article ID: 11987908 " "Broadweave exec: Skipped payments not bad omen Date: December 16, 2008 Provo » Steve Christensen said Broadweave Networks has turned the troubled iProvo network around. The network recently signed up its 1,000th customer and saw revenue increase 10 percent a month in the past three months. Christensen, Broadweave's chief executive, also said it has signed up 20 commercial customers. But the success also has meant skipping at least two payments to the city for the network. "Things couldn't be... Author: Donald W. Meyers The Salt Lake Tribune Word Count: 355 Publication: Salt Lake Tribune, The (UT) Article ID: 11248575" http://www.phoneplusmag.com/hotnews/broadweave-telarus-iprovo-footprint.html -------------------- BYU Unix Users Group http://uug.byu.edu/ The opinions expressed in this message are the responsibility of their author. They are not endorsed by BYU, the BYU CS Department or BYU-UUG. ___________________________________________________________________ List Info (unsubscribe here): http://uug.byu.edu/mailman/listinfo/uug-list
