Sunday, 11 May 2008
Last chance for UTOPIA Print E-mail
Daily Herald   

UTOPIA got the money it was looking for, and now several valuable developments add to hopes for the broadband system: a more realistic view of the future; a clearer vision of what the municipally owned network aims to do; a more specific idea of how long it will take; and some hope that a reasonable buyer might be available somewhere down the road.

Ten of the 11 cities in the UTOPIA consortium -- including Orem and Lindon -- have OK'd a refinancing plan that could put them on the hook for up to $500 million if the system flops, but which would cost them nothing if it's a brilliant a success as its advocates have envisioned. The holdout city, Payson, has scheduled a meeting for Monday to reconsider its lone "no" vote.

 

The refinancing plan is meant to free up $11 million to give UTOPIA a fresh start. But the fact that a refinancing was needed at all has underlined the system's failure to reach its goals.

Orem's council voted unanimously for the refinancing, but even there the debate reveals something about the choices the cities faced. "We're no worse off, and we have the opportunity to be better off," said Councilwoman Margaret Black.

That seems to sum up the view that, whether or not UTOPIA is all it was cracked up to be, cities have to deal with the sometimes unpalatable facts. To some, the consortium cities are like the owner of an expensive car that needs repairs. It doesn't make sense to park it by the road and walk away; an investment is needed to get it running right.

That doesn't mean the decision was easy. Some councils were divided. Even some officials who voted for it indicated misgivings, calling the plan the lesser of two evils, or saying that they were voting to give UTOPIA a limited amount of time to make good. At least one said the idea made him sick ... before voting for it.

That may seem a negative, but in fact it's a positive. UTOPIA has gone astray partly because its starry-eyed visions were taken as facts. The city councils are now looking at things with a colder, clearer eye, and that's an advance right there.

Another advance is that UTOPIA is planning major changes. This is good because the status quo is not sustainable, and the leadership now vows that it will take strong measures to turn things around. Officials say they will embark on a major restructuring: a new executive director, new marketing, new technical personnel, new service providers, new offerings. They say noticeable changes will appear in June, with a far better UTOPIA coming together over the next four to six months.

And it's also clear the company has two years, tops, to make the grade. If that timeline seems vague, it's better than the open-ended commitment that seemed to hover over the venture for so long.

UTOPIA is also trying to better explain itself -- another improvement -- for its failure to market itself effectively.

For example, one aspect of the new marketing drive that has drawn criticism is the reported plan to charge from $1,000 to $3,500 for connecting to the system. UTOPIA says the plan has been misunderstood; asking people to fork over huge hook-up fees would be suicidal. Company officials say they are working on plans to package the products and hook-up fees in a creative and attractive format that consumers will find a good value.

Perhaps most encouraging of all is the proposed sale of iProvo to Broadweave Networks. That suggests that smart digital service providers are starting to see enough demand for major investment, which is a good sign for UTOPIA. It also suggests that in two years, if it's not performing with government strings attached, it may be able to find a qualified buyer in the private sector that is able to take it over.

It's no knock on any of the governments involved to suggest that private enterprise is a better operator of a risky, high-tech enterprise.

By the end of this year, officials and taxpayers in UTOPIA cities are entitled to expect and demand clear signs of success. If those are not present, it will be time to sell.

For now, discussion has become more realistic, and that's a good thing. The picture has not resolved to high definition, but at least it's clearer and brighter than it was.

Article views: 812  
User Rating: / 5
PoorBest 
No Comments.

Discuss this article on the forums. (0 posts)
Generated in 0.09885 Seconds