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Comments on news posted 2007-06-15 09:03:28: Qwest's Utah President, Jerry Fenn, tells the Salt Lake City Weekly (via Technometria) that Qwest has been on "the other side of municipally backed telecom projects" mostly because "of the long-term harm to consumers. ..
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 |  |   mcmillan
join:2001-04-15 West Bloomfield, MI
1 edit | Re: Utopia In The Hole IMO it is not about 40$/ month bill. I would pay a 80 and then could even more if I had business going on this service. If taxpayers decide to drop the Utopia so be it. I would disagree with the point about road expenses. Quote: "Any person who does not wish to pay for roads can simply choose to not drive or own a vehicle, and he/she will not be paying for roads." End Quote. My counter point. Any person who does not wish to be breathing contaminated air can simply stop breathing. The availability of public transport makes it a difficult solution. Taxpayers have no direct control over spending in any state. | |
|  |  |   pnh102 Reptiles Are Cuddly And Pretty Premium join:2002-05-02 Mount Airy, MD
·Comcast
| Re: Utopia In The Hole said by mcmillan :Any person who does not wish to be breathing contaminated air can simply stop breathing. The availability of public transport makes it a difficult solution. The article made no mention of pollution from vehicles. It only erroneously compared the buildout of the road network to that of Utopia. When it comes to simply paying for roads, the people who do not drive or do not own vehicles do not end up paying for these roads. Contrast this with Utopia, which if it does fail (being $100m in the hole is not a good start), the taxpayers, including those who do not use the service are going to be socked big time. -- Only SHATNER is Kirk. | |
|  |  |  |   mcmillan
join:2001-04-15 West Bloomfield, MI | Re: Utopia In The Hole I am sorry. I edited my post. The pollution was my example. | |
|  |  |  |  Ahrenl
join:2004-10-26 North Andover, MA
·Verizon FIOS
1 edit | Where'd they get all those gas and vehicle taxes before the highways were there? They must have pre-taxed all the people who thought about driving, and then built it out that way.
By the way, nice ridiculous assumption of $100m in the hole.
Like any business in the development stage, revenues are expected to increase substantially every year. If they increased at the same rate (1000% I believe I saw from your link) they'll be making $150 billion dollars in revenue a year by year 6. In year 7 they will represent 10% of the US GDP. :P | |
|  |  |  |  wierdo
join:2001-02-16 Tulsa, OK
·Future Nine Corpor..
·Teliax VOIP
| said by pnh102 : When it comes to simply paying for roads, the people who do not drive or do not own vehicles do not end up paying for these roads. That's not in any way true, unless all the roads are toll roads. Gas taxes make up a part of road funding, but not nearly all, at least not in any state I'm familiar with nor on the federal level. | |
|  |  |  |  |   pnh102 Reptiles Are Cuddly And Pretty Premium join:2002-05-02 Mount Airy, MD
·Comcast
| Re: Utopia In The Hole said by wierdo :That's not in any way true, unless all the roads are toll roads. How is it not true? In most states, the road budget comes entirely from gas taxes, tolls (for toll roads only), registration fees and other road-specific funding sources. These not only cover the costs of roads, but they subsidize transit and other government programs as well. If anything, roads are underfunded in this country. -- Only SHATNER is Kirk. | |
|  |  |  |  |  rahvin112
join:2002-05-24 Sandy, UT
| Then you aren't familiar with any state. Gas taxes comprise a 100% of funding in nearly every single state in the union. You pay close to $0.50 a gallon in federal and state gas tax (depending of course on your state's gas tax), all of the federal money is collected in the highway trust fund and expended by congress. This money generally goes back to the states at a 1:1 ratio to what residents in the state pay. The exceptions are Montana and Alaska, Montana received around $2 for every dollar of gas tax collected, and Alaska received nearly $4 for every dollar. Most won't be surprised that Senator Ted Stevens of Alaska is the head of the Senate transportation committee and Montana up until recently held the seat in the house of representatives.
BTW the 2006 funding bill was the first time in the history of the interstate system that congress fully allocated the highway trust fund to roads and transit, rather than stealing a significant percentage to fund pet projects like the Dan Quayle train museum in the Midwest. 2006 was also the first year that the larger states such as California actually got back from the feds what their residents paid in gas tax.
If Congress had conserved the highway trust fund, instead of robbing it every year for the past 50 years there would be over a trillion dollars of unspent gas taxes that could actually be allocated to rebuilding the national highway system. As many of you are probably aware the highways were built in the 50's and 60's with a 50 year life span. That life span is up, and repair of just the interstate system will cost 100's of billions.
In fact there are 260,000+ bridges in this country that don't meet safety standards and can't be repaired because the money isn't allocated to fix the infrastructure. As a result the states and FHWA have moved into preventative failure mode where bridges are only fixed when they absolutely must be (such as a large chuck of the deck falling out), rather than when they should be (such as when an engineer inspects the bridge and notes that the rebar that provides strength to the structure has rusted away). | |
|  |  |  |  |  |  wierdo
join:2001-02-16 Tulsa, OK
·Future Nine Corpor..
·Teliax VOIP
| Re: Utopia In The Hole said by rahvin112 :Then you aren't familiar with any state. Gas taxes comprise a 100% of funding in nearly every single state in the union. You pay close to $0.50 a gallon in federal and state gas tax (depending of course on your state's gas tax), all of the federal money is collected in the highway trust fund and expended by congress. This money generally goes back to the states at a 1:1 ratio to what residents in the state pay. The exceptions are Montana and Alaska, Montana received around $2 for every dollar of gas tax collected, and Alaska received nearly $4 for every dollar. Most won't be surprised that Senator Ted Stevens of Alaska is the head of the Senate transportation committee and Montana up until recently held the seat in the house of representatives. No, they don't. In my own state, we recently spent a couple of billion dollars over a few years from bonds backed by sales tax revenue to fund many needed road repairs.
In Oklahoma, the lion's share of the road budget (which is not nearly enough given that they literally have the worst bridges in the country, bar none) comes from tolls generated by the turnpike system, so you are at least partially correct. The rest does indeed come from fuel taxes, although they do also have many projects funded by sales tax and income tax revenue from time to time, especially in the case of city streets.
In fact, in every state, the lion's share of the road mileage is in cities, and in most cases the vast majority of the funding for maintenance and new building of that road mileage comes from city sales taxes, property taxes, or other non fuel tax funding sources, depending on the state.
Again, fuel taxes do pay for much of the maintenance on our highways, but by no means all. Even at the federal level, many road projects are funded out of general revenues, not the nearly depleted highway trust fund. Highways and Interstates are by no means the bulk of the road system in this country.
Once again, since I apparently need to repeat myself several times for some here to understand what I'm saying: Fuel taxes make up a large part of the funding formula for roads in this country, but not all of it. If you count city streets, it probably doesn't even come to half. | |
|  |   TScheisskopf World News Trust
join:2005-02-13 Belvidere, NJ
·Sprint Broadband D..
| Buildout. Economies of Scale. Growth of customer base.
Econ 101.
And the time is over for the "Broadband is not vital infrastructure" argumet to have any credibility. If private industry's practices are not successful in meeting the needs of citizens, then it is proper and appropriate for government to step in, or risk being a "Third-World Economic Climate". | |
|  |  |   pnh102 Reptiles Are Cuddly And Pretty Premium join:2002-05-02 Mount Airy, MD
·Comcast
| Re: Utopia In The Hole said by TScheisskopf :Buildout. Economies of Scale. Growth of customer base. Economies of scale only work when the cost of adding additional customers is marginal. In the case of a broadband rollout, this is not the case. Each additional customer requires that someone dig a trench, run cable that also needs to be purchased, install equipment that has to be maintained and pay more people to maintain said equipment.
Basically, the more customers they add, the more money they will lose. Now granted, over time, they may make enough to break even, but when I see that they've spent $100 million to wire up a few cities, that just seems like a very large economic hump to get over. -- Only SHATNER is Kirk. | |
|  |  |  |   rahlquist Redeye
join:2001-10-30 Villa Rica, GA
| Re: Utopia In The Hole said by pnh102 : Each additional customer requires that someone dig a trench, run cable that also needs to be purchased, install equipment that has to be maintained and pay more people to maintain said equipment. While technically true keep in mind that in the case of a NEW customer these costs are going to happen anyway when they hook them up to sewer, water, cable, phone, and in some cases underground power.
Basically, the more customers they add, the more money they will lose. Now granted, over time, they may make enough to break even, but when I see that they've spent $100 million to wire up a few cities, that just seems like a very large economic hump to get over. No argument there, it is a large hump but some creativity could help them. -- Fed Up With Stupidity?
Patentlystupid.com | |
|  |  |  |  |   pnh102 Reptiles Are Cuddly And Pretty Premium join:2002-05-02 Mount Airy, MD
·Comcast
| Re: Utopia In The Hole said by rahlquist :While technically true keep in mind that in the case of a NEW customer these costs are going to happen anyway when they hook them up to sewer, water, cable, phone, and in some cases underground power. True, true. I know that a lot of local governments impose surcharges on new developments to cover these costs (these actually are going up where I live). That isn't unreasonable, as existing users of these services should not have to pay a rate hike to cover the costs of adding new users. -- Only SHATNER is Kirk. | |
|  |  |  |  |  |   once again
@mcleodusa.net
from: plk 
| Re: Utopia In The Hole I have to post this every single time.
It has been calculated that worst case scenario (network is total loss) cost to tax payers is between 5-10 dollars a month (per household).
Maybe you realized this or maybe you didn't, comcast costs 15 dollars month less in utopia areas.
The main point is that no matter what happens with the build out the taxpayer will likely save more money in the long run due to lower prices and increased competition. Even if they never use a utopia service they will save money.
As an aside. I run a counter-strike source server and have dozens of players that come in with a ping of 5. Guess what they are on??? yep, utopia (and iprovo) | |
|  |  |  |  |  |  |   pnh102 Reptiles Are Cuddly And Pretty Premium join:2002-05-02 Mount Airy, MD
·Comcast
| Re: Utopia In The Hole said by once again :
It has been calculated that worst case scenario (network is total loss) cost to tax payers is between 5-10 dollars a month (per household). Do you enjoy spending 5-10 dollars a month if you don't need to? I don't. This estimate is patently ridiculous anyway, given how much money it costs just to run cable.
said by once again :
Maybe you realized this or maybe you didn't, comcast costs 15 dollars month less in utopia areas.
But you're paying more in taxes to fund utopia, so where is the savings?
said by once again :
Even if they never use a utopia service they will save money. You started your post by claiming that utopia costs each taxpayer 5-10 dollars more a month. How can you claim to save any money if you have to spend more money? -- Only SHATNER is Kirk. | |
|  |  |  |  |  |  |  |   spell it out
@mcleodusa.net
from: Ahrenl 
| Re: Utopia In The Hole Judging from your posts I can only assume that you have misunderstood the entire project, concept, cost and function of the utopia network.
Do you have something fundamentally against paying less for 15mbit symmetrical internet than what comcast delivers to you today? And not only that but being able to decide between several for profit non government companies on who best will serve you to get your money? Don't like your isp on utopia?? change it. Don't like your cable isp?? you're screwed!!
You claim the taxpayers shouldn't be on the hook for something like this. If you've ever studied economics, the taxpayers are on the hook for EVERYTHING in some way or another. If you think comcast upgrading to fiber throughout your city/state wouldn't cost you as a taxpayer in some way or another you'd be crazy. Plus the taxpayers voted utopia in anyways knowing the risk. And Utah has ran a millions of dollars a year budget surplus for the last few years anyways.
As far as the savings i don't know how i can spell it out more clearly. Potential Cost 5-10 per month per household that would likely come as property tax increase (but only if utopia loses solvency the network is worth nothing and taxpayers have to pay the entire bonds) Confirmed Savings 15+ dollars a month in internet alone. That is 30-40 vs 45-55 depending on who your isp and plan is. And even if you dont get any utopia services you still save money because comcast charges 29.99 in utopia areas for their fastest speeds in utah (currently 8/756).
But wait there's more. My business pays in the realm of 1400 dollars a month for two T1 lines giving about 3mbit symmetrical speeds. If I was in utopia land I could get their business services with 30mbit symmetrical speeds for 145 dollars a month. hmm ten times more speed for 10 times less money. Heck I'd even donate the entire cost difference to the "taxes" you are so worried about and just keep the 30/30 for 1400 if I could.
And finally please never never never call utopia an isp, it is not. If your internet goes down you call at&t or xmission or whomever your isp is. | |
|  |   vpoko Premium join:2003-07-03 Jamaica Plain, MA
| said by pnh102 :Roads in the USA are paid for by gas taxes, tolls and car and truck registration fees. In most states, only people who drive and/or own vehicles pay for road maintenance. Any person who does not wish to pay for roads can simply choose to not drive or own a vehicle, and he/she will not be paying for roads. Then explain why you, a resident of MD, is paying for our Big Dig in Boston? Federal income taxes pay for roads. | |
|  |  |   pnh102 Reptiles Are Cuddly And Pretty Premium join:2002-05-02 Mount Airy, MD
·Comcast
| Re: Utopia In The Hole said by vpoko :Then explain why you, a resident of MD, is paying for our Big Dig in Boston? Federal income taxes pay for roads. Because each of us pays a federal gas tax when we fill up. -- Only SHATNER is Kirk. | |
|  |  |  |   vpoko Premium join:2003-07-03 Jamaica Plain, MA
| Re: Utopia In The Hole said by pnh102 :said by vpoko :Then explain why you, a resident of MD, is paying for our Big Dig in Boston? Federal income taxes pay for roads. Because each of us pays a federal gas tax when we fill up. What are you talking about? Congress appropriated money for the Big Dig and that money came out general tax receipts. | |
|  |  |  |  |  rahvin112
join:2002-05-24 Sandy, UT | Re: Utopia In The Hole The dollars allocated for the big dig were allocated out of the highway trust fund. | |
|  |   RR Conductor RailRoadDude Premium join:2002-04-02 Redwood Valley, CA 1 edit | Roads are also paid for with inflated subsidies, thankfully, things are slowly changing. | |
|  |  |   pnh102 Reptiles Are Cuddly And Pretty Premium join:2002-05-02 Mount Airy, MD
·Comcast
| Re: Utopia In The Hole said by RR Conductor :Roads are also paid for with inflated subsidies, thankfully, things are slowly changing. How so? I know there are some states which do not charge enough gas tax to cover the costs of roads but this is not a widespread problem. However, in just about every state, and at the federal level, gas taxes subsidize transit. -- Only SHATNER is Kirk. | |
|  |  Nuts
join:2006-04-27 Forest, OH
| Actually, everyone does pay for roads, whether they use them or not. Everytime they go to the store and purchase something, or you use a service, the price of transportion is included in that item. So whether directly or indirectly, everyone pays for the roads. | |
|  |   Jesse Harris
@comcast.net
from: plk 
| You're off. So very, very off. Municipal networks have a take rate of about 25-30% within the first year of availability (based on take rates in other networks in the area like iProvo, AFCNet and SFCN). That take rate usually increases to 50-60% within several years. Consider that a large part of the initial cost is running the main backbone along the UPRR and I-15 from Box Elder County to Utah County, almost 120 miles worth of trenching and laying fiber. That's absorbing a large chunk of the shared costs immediately.
Also bear in mind that the average cost of deployment is about $1200 per home and that the initial loans are construction loans at 1.5% converted to 20-year muni bonds at 6%. Once the build-out is complete, you're left with about $350M or so in bonds at 6% costing you about $30M per year in bond payments. At the full build-out of 250K homes, a 30% take rate translates into 75K subscribers who're taking an average of two services a piece (or 150K subscriptions). Since about $20 per service per month goes to debt service, you're paying $36M a year towards the bond.
Waitaminute... this means that with a LOW take rate, UTOPIA produces a SURPLUS of debt payment revenue! When you actually know what the heck you're talking about and can manage to crunch numbers, you realize that it's a very solid financial picture, not the doom and gloom you make it out to be. Maybe you should bother reading their white papers and full statements before you go off half-cocked.
Jesse Harris »www.freeutopia.org/ | |
|  |  |  |  |  |   TScheisskopf World News Trust
join:2005-02-13 Belvidere, NJ | Re: This is an outrage! It is quotes from executives like Fenn that just reinforce my belief that in modern US business, if you want to be an executive, a diagnosis of Sociopathy is a vital entry on your CV. | |
|  |   spewak R.I.P Dadkins Premium join:2001-08-07 Elk Grove, CA
·SureWest Internet
·FrontierNet Intern..
| said by mcmillan :"Why give [consumers] a Rolls Royce when a Chevrolet will do?" Jerry Fenn in 2003 Why NOT,  Jerry? THE LONG-TERM HARM TO CONSUMERS... WTF? Heck, he might as well go for broke: "If they build it, the terrorists will win".  -- The weekend is here, grab a can of beer! | |
|  |   pnh102 Reptiles Are Cuddly And Pretty Premium join:2002-05-02 Mount Airy, MD
·Comcast
| said by mcmillan :"Why give [consumers] a Rolls Royce when a Chevrolet will do?" Jerry Fenn in 2003 Why NOT,  Jerry? The operative word here is "give." I am sure Mr. Fenn will happily sell you a Rolls Royce (even in a metaphorical sense). But giving one away, even more most people... we'd probably be a bit stingy there. -- Only SHATNER is Kirk. | |
|  |  |   mcmillan
join:2001-04-15 West Bloomfield, MI
1 edit | Re: This is an outrage! Good point. Let me be clearer. I understand that Mr. Fenn said, "Why should the industry (Qwest?) provide customers with better , cheaper service when providing with inferior one will make the most of the customers happy enough" My point is, Why not provide people with the service which will not be overpriced. Competition is suppose to help customer not the company.
The people Mr. Fenn likes are the ones that use his service, paying according to his price-list. He implies that it is not proper to compete with the company. I do not think Mr. Fenn meant "give" in a literal sense. He could not possibly have. Neither did I | |
|  |  |  Bishounen
join:2007-04-29 Buffalo, NY
| The real problem here is not the GIVE part, since he's obviously not giving away service. The problem is that Mr. Fenn wants to CHARGE for a Rolls-Royce while supplying a Chevrolet. Most of us would call that a rip-off, which is exactly what the North American broadband market is today.
Utopia, and other Municipal broadband providers, seek to provide an alternative to this. Basically they provide broadband at prices based on the price structure of broadband in countries at the TOP of the broadband penetration list, rather than the US, which is somewhere around 27th in the world. The idea being that US citizens should have access to the same opportunities at a similar price-point as citizens of other developed nations. So they aren't getting a Rolls Royce, they are getting a Chevrolet, but only being CHARGED a Chevrolet price.
I'm not saying that State-run broadband is the way to go, goodness knows that socialism screws up more things than even the worst monopolist could. But there is nothing wrong per-se with taxpayers getting together cooperatively and deciding to start a community owned broadband company. Particularly in towns where there is either a monopoly or duopoly of broadband providers, creating a third option can often be to the taxpayers benefit, especially if it drives some of the exorbitant prices down.
Of course, this would have to be at the taxpayers behest. IE: a publicly voted on bill, managed by an elected board of trustees, and reauthorized every few years. This keeps the control in the hands of the voters, and an elected board keeps cost overruns down, as they are directly answerable to the people at a local level. I have no idea if this is how Utopia works, but that's how I would set it up if I had the option. | |
|  |  |  |   jesse weber
@comcast.net
| Re: This is an outrage! I do agree with you that state-run broadband isn't the way to go either. The reason the folks in Utah (including myself) love this initiative so much, is that UTOPIA just provides the infrastructure so that new ISPs can come to the market and compete and thus drive innovation (not to mention lower prices). And thats really the problem that Utah has had previously. We used to only have Qwest or Comcast. If you didn't like them, you could have dial-up or nothing at all.
I don't know whether or not there was a bill voted on by the public, but I'm not sure if it would be necessary. The only money that the government is giving for this project is a low-interest loan. To pay back that loan, everything comes from the fees of using the service. So basically, the people are voting with their pocketbooks. | |
|   ib50MbSoon Formerly TwoKDialup Premium join:2002-06-07 Coloma, MI
| What's the problem? Decades ago we built out a nationwide phone network to virtually everyone/everywhere. The voice network served its purpose but is now approaching end of life.
So why can't we build a fiber network today?
If the telcos don't want to do it then they should STFU and get the hell out of the way of those who do! -- Meet Bill and Karolyn at www.theslowskys.com | |
|  |  Sammer
join:2005-12-22 Canonsburg, PA
| Re: What's the problem? Absolutely, a FTTH network will be built to the majority of homes in the U. S. of A. It might take a few decades but it will happen one way or another so if the chief executives of telcos don't want to do it they must either get out of way or be run over by the technology. | |
|  |  cwire
join:2007-06-07 Bedford, KY | we didn't build anything, your good buddy at&t did. why don't you take your telco hating and shove it. | |
|  |  dmconwa
join:2007-04-19 Albuquerque, NM
| The only company that was ever big enough to run a national fiber network and maintain it was the old AT&T pre divestiture. That's where I have a feeling these muni deployments will fail is in maintaining the service. I think in the end corporate entities will have more flexibility for consumers and be able to offer more comprehensive bundles that they won't be able to compete with. They won't make enough money just selling internet service to make it work. | |
|  |  |  |   calvoiper
join:2003-03-31 Belvedere Tiburon, CA
| On Rolls Royces.... Qwest Utah President Jerry Fenn asks:
"Why give [consumers] a Rolls Royce when a Chevrolet will do?"
And the response was:
"Why should we worry about answering questions from the Yugo salesman?"
calvoiper -- VoIP--the death knell of remaining voice monopolies! | |
|   longstreet
join:2004-11-14 Plano, TX
| Xmissions Stance on it Too bad Qwest is busy dealing with SEC investigations and high level restructuring - How deep in the whole are they? Oh that's right, their leadership was 'stealing' money from consumers . . .hmm . . .who's costing who ?
Laying fiber is expensive. Part of the reason why Utopia has large bills is Qwest and Comcast's BS actions in the legislature.
I'm going to post a response from the president of XMISSION, the first ISP in utah, of whom I had an account and a 14.4 back in the day :
quote: UTOPIA is a city fiber-optic network project with high potential for citizens and the Utah economy. UTOPIA seeks to provide a level playing surface for competition of telephone, television, and Internet providers. The project calls for municipalities to construct a "digital road" to all its citizens and to allow any company to compete for customers on it. City councils of the 18 participating cities have been studying and debating this project for two years. Brigham City, Lindon, Midvale, Tremonton, and West Valley City have voted in favor of UTOPIA while the remaining 13 have not reached a decision yet. Sensing the tide turning against them, UTOPIA opponents Qwest and Comcast are attempting to bypass cities by approaching the state legislature. If passed, Senate Bill 66 would effectively kill UTOPIA and future municipal networks by cutting off the cities' options to fund their birth. As president of XMission, Utah's first Internet Service Provider, I would like to invite all Utahns to join me in the debate over this critical project for our economy.
Some fear that technology is too uncertain to invest in UTOPIA today. In the past decade, computing power has exponentially increased and miniaturized at the same time. The horsepower behind the video games our kids play today would make the nuclear scientist of the nineties envious. Cell phones have shrunk to the point where, next to car keys, they have become the 2nd most cursed misplaced object. XMission started in 1993 on the best communications technology available at the time, 14.4Kbps modems. Now we have the opportunity to run XMission over DSL to residences as fast as the entire T1 connection I purchased for the whole company when it started. It is understandable why the casual observer might think that a network deployed today would be quickly outdated.
Yet fiber optics are unique in their ability to adapt with the advancement of technology. Fiber's advantage comes from the use of a full prism of light where each "color" can send a different stream of information. Differences in "color" are defined by the ability to determine differences in wavelength. As advances in technology divide the light spectrum into smaller and smaller pieces, the information capacity of the fiber continues to multiply to numbers that are hard to comprehend. Equipment exists today to transmit 1.6 terabits (1.6 trillion bits) per second over a single fiber. To put this number in perspective, this amounts to roughly 20 times the current global Internet and telecommunications traffic use. Experimental systems are pushing 25 terabits per second. Where will it end? Your guess is as good as mine. One thing is certain though; a network using fiber may last beyond any of our lifetimes since the electronics on each end of the fiber can be updated as technology progresses. UTOPIA has budgeted for a complete replacement of electronics three times over the course of its 20 year plan.
When the potential of fiber is compared against other technologies such as DSL, cable, satellite, and wireless, these other options can't compare. DSL is already bumping up against the limitations of copper and it is my firm belief that it will be as relevant as a 14.4Kbps modem in another ten years.
Does a home or business need the full bandwidth potential of fiber? My experience with the Internet has shown never ending growth with a constant demand. Back in 1993, I would not have believed it if someone had told me residences would need T1 level speeds today. My opinion is further sobered by the modern demands of the Internet business. As services converge to digital form it makes sense to have one fast conduit for them all. Using a single high-speed conduit is not only more efficient, but it would help reduce the current spider web of lines above our streets. UTOPIA's plan for fiber "rings" would provide superior redundancy against inclement weather such as recent snowstorms, and wayward backhoes.
Recently much has been said about WiMax, the next generation of wireless technology. Qwest has been very public about their plans for WiMax to replace DSL. With a 70 megabit, 30 mile transmission potential, it would seem to make sense. However, if you've ever lost signal on your cell phone you can immediately see the problem with over-the-air networks, interference and obstacles. In addition, the 70 megabits available with WiMax is intended to be shared in a neighborhood instead of being wired directly to your house. WiMax is a terrific accessory for a fiber to the home network, but not a replacement for it.
A broader question concerning UTOPIA is whether government should be in the network business at all. Government is already an inexorable part of telecommunications. Tax payers bought and paid for the 19th century copper network over which Qwest currently maintains control. UTOPIA was conceived largely due to the needs of cities which Qwest has not met. If UTOPIA is not able to proceed building a 21st century network, then the copper network should be taken back from Qwest for they have been a poor steward of this most generous gift. Our modern economy depends upon a strong and robust communications infrastructure. Regardless of who controls the copper network in Utah, is it prudent to base our future upon its antiquated architecture?
Some claim that UTOPIA's business plan is faulty, basing their argument on the failure of many fiber-based telecommunications companies. These companies did not fail due to technology implications, they failed because of bad management and greed. XMission started long before the explosion of the Internet and continues to thrive. Our longevity is a result of being fiscally conservative and not having stock price as a focus, a trait not shared by telecoms and dot-coms who crashed and burned, or by telecoms that are now too bond poor to invest in advanced infrastructure today.
Tax advocates fear that the risk to taxpayers is too high with UTOPIA. They say that if the network fails completely after all the money has been spent and if nobody has subscribed, households would shoulder up to $5.69 each month for 20 years. Qwest and Comcast have both stated they would be gunning for failure of UTOPIA, so they would inevitably launch cut-throat pricing in an attempt to keep customers. Would pricing drop more than $5.69 a month? Do tax advocates believe it is better for captive customers to pay $5.69 in truckloads to our out-of-state telephone and cable overlords, or, would it be better to invest in building in-state infrastructure? I think the money should go to in-state infrastructure.
Lets examine the UTOPIA tax risk. Funds are spent only as the network rolls out. If, after all, households do not choose services on the UTOPIA network, then construction can cease without utilizing the taxpayer guarantee. There would be no need to spend the rest of the invested bonds.
What is more exciting to consider, though, is UTOPIA succeeding. If only four out of 10 households use at least one service, UTOPIA will show a profit, a profit that the cities can apply as they see fit, such as in reducing taxes.
Qwest and Comcast have repeatedly estimated costs in the hundreds of millions of dollars to maintain their Utah infrastructure. If I ran these companies and the government came to me offering to eliminate these maintenance costs, and allowed me to use the network, I would be overjoyed. Hard working employees could be given raises approaching the millions that are currently being paid to executives. Prices could be drastically dropped. Customer satisfaction would go through the roof due to superior reliability. So why did Qwest and Comcast turn down the offer to be providers on UTOPIA? Because they would rather lord over their exclusive networks than share on an equal playing field.
Comcast has experience in killing these movements, and Qwest is reading the manual. One history to read is tricitybroadband.com where Comcast and their telephone cohort SBC used all manner of lies and scare tactics to stop a ballot proposal to build a similar network in Illinois. Supporters spent $3000 to promote the idea and opponents spent $2,000,000 to crush it.
Let me make it clear, UTOPIA is not designed to supplant Qwest and Comcast. In spite of this fact they are using scare tactics right now to enlist independent rural telephone companies in their fight, stating the government is seeking to usurp the rural telcos' jobs. These small companies should be commended; they lay fiber to homes and schools on their own dime and provide excellent service while keeping revenues local. These rural companies have nothing to fear for they are doing their job to the level citizenry expects. I honestly wish they could provide service to the rest of us.
I clearly understand the power of being first in a technology field. Because XMission was first to provide public Internet in Utah, we enjoyed a distinct advantage in getting our name out and establishing a reputation for excellent service. Although the United States as a whole lags behind other developed nations in fiber deployment, there is still time for Utah to advance beyond other states and establish a reputation for having an advanced technological infrastructure. The timing is important for the economy of Utah. Technology jobs are leaving the state in droves, and a fiber network would be an excellent carrot to bring them back. Senate Bill 66 will torpedo UTOPIA if passed. City councils are debating and holding public hearings. If you are dissatisfied with your telephone, television, and Internet options, or simply want to be sure they can provide better services in the years to come, it is time to make your opinion heard.
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join:2001-04-15 West Bloomfield, MI | Re: Xmissions Stance on it Thank you for that text. | |
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