Utah Telecommunication Open Infrastructure Agency
Encyclopedia
The Utah Telecommunication Open Infrastructure Agency (UTOPIA) is a consortium of 16 Utah
cities engaged in deploying and operating a fiber to the premises network to every business and household (about 140,000) within its footprint. Using an active Ethernet
infrastructure and operating at the wholesale level, it supports open access and promotes competition in all telecommunications services.
UTOPIA encountered financial problems in late 2007 and halted all new construction. They have applied for and been approved for loans from the US Department of Agriculture's Rural Utilities Service program. These loans required UTOPIA to submit a construction plan for approval and, once approved, apply for reimbursement. UTOPIA reportedly ran into multiple delays in seeking reimbursement before being outright refused any further reimbursement from RUS without explanation. At the time, UTOPIA had $11M in outstanding construction costs that had not been reimbursed by RUS.
Because of these problems, UTOPIA asked its pledging member cities to extend the bonding period from 20 to 30 years and bond for additional money to pay down debts, complete unfinished sections of the network, and provide two years of capitalized interest payments. The new bond is for $202M with a total cost with interest of over $500M. The network has fewer than 10,000 subscribers.
Utah
Utah is a state in the Western United States. It was the 45th state to join the Union, on January 4, 1896. Approximately 80% of Utah's 2,763,885 people live along the Wasatch Front, centering on Salt Lake City. This leaves vast expanses of the state nearly uninhabited, making the population the...
cities engaged in deploying and operating a fiber to the premises network to every business and household (about 140,000) within its footprint. Using an active Ethernet
Ethernet
Ethernet is a family of computer networking technologies for local area networks commercially introduced in 1980. Standardized in IEEE 802.3, Ethernet has largely replaced competing wired LAN technologies....
infrastructure and operating at the wholesale level, it supports open access and promotes competition in all telecommunications services.
Operations
UTOPIA operates as a wholesale fiber optic network and is prohibited by law from providing retail services. There are currently 7 service providers on the UTOPIA network and the network is open to additional service providers that meet certain qualifications. Though UTOPIA has extended an open invitation to both Comcast and Qwest, the incumbent service providers, both have declined to join the network.Financing
UTOPIA bonds for construction costs using sales tax pledges as collateral to secure the bond. Revenues to cover the bonds are then set aside by pledging cities in an interest-bearing account and will only be used should subscriber revenues fail to cover the debt service. Because UTOPIA cities all bond at the same time and use their collective bond ratings and taxing authority, financing is generally seen as low-risk and secures a low interest rate.UTOPIA encountered financial problems in late 2007 and halted all new construction. They have applied for and been approved for loans from the US Department of Agriculture's Rural Utilities Service program. These loans required UTOPIA to submit a construction plan for approval and, once approved, apply for reimbursement. UTOPIA reportedly ran into multiple delays in seeking reimbursement before being outright refused any further reimbursement from RUS without explanation. At the time, UTOPIA had $11M in outstanding construction costs that had not been reimbursed by RUS.
Because of these problems, UTOPIA asked its pledging member cities to extend the bonding period from 20 to 30 years and bond for additional money to pay down debts, complete unfinished sections of the network, and provide two years of capitalized interest payments. The new bond is for $202M with a total cost with interest of over $500M. The network has fewer than 10,000 subscribers.
Member Cities
UTOPIA has two types of members: pledging and non-pledging. Pledging cities have committed to cover bond payments should UTOPIA become unable to service the debt through subscriber revenues. Non-pledging cities have made no such commitment and will only see construction begin after the pledging cities are complete and if UTOPIA goes revenue positive.- Brigham City
- Cedar City (Non-pledging)
- Cedar HillsCedar Hills, UtahCedar Hills is a city in Utah County, Utah, United States. The population was 3,094 at the 2000 census, and was estimated to be 9,551 in 2008. The city began growing rapidly during the 1990s, with the largest growth rate of any municipality in the state. It is located east of Alpine and Highland on...
(Non-pledging) - CentervilleCenterville, UtahCenterville is a city in Davis County, Utah, United States. It is part of the Ogden-Clearfield Metropolitan Statistical Area. The population was 15,335 at the 2010 census...
- LaytonLayton, Utah-External links:*...
- LindonLindon, UtahLindon is a city in Utah County, Utah, United States. It is part of the Provo–Orem, Utah Metropolitan Statistical Area. The population was 10,070 at the 2010 census.The western sculptor Grant Speed resides in Lindon.-Geography:...
- MidvaleMidvale, UtahMidvale is a city in Salt Lake County, Utah, United States. It is part of the Salt Lake City, Utah Metropolitan Statistical Area. The population was 27,029 at the 2000 census.-Geography:Midvale is located at ....
- MurrayMurray, UtahMurray is a city situated on the Wasatch Front in the core of Salt Lake Valley in the U.S. state of Utah. Named for territorial governor Eli Murray, it is the state's fourteenth largest city. According to the 2010 census, Murray has approximately 46,746 residents.Murray is close to Salt Lake City,...
- Orem
- PaysonPayson, UtahPayson is a city in Utah County, Utah, United States. It is part of the Provo–Orem, Utah Metropolitan Statistical Area. The population was 12,716 at the 2000 census. The current mayor is Rick Moore, who in the 2009 election was the first write-in candidate ever to defeat an incumbent mayor in...
- PerryPerry, UtahPerry is a city in Box Elder County, Utah, United States. The population was 4,512 at the 2010 census.- History :Perry was originally named Welsh Settlement, but the name was shortly afterward changed to Three Mile Creek. It was renamed after Gustavus Adolphus Perry and his family, who were among...
- RivertonRiverton, UtahRiverton is a city in Salt Lake County, Utah, United States. It is part of the Salt Lake City, Utah Metropolitan Statistical Area. The population was 38,753 at the 2010 census. Riverton is one of the fastest-growing cities in the state of Utah, and was ranked by CNN Money Magazine as the 60th best...
(Non-pledging) - TremontonTremonton, UtahTremonton is a city in Box Elder County, Utah, United States. The population was 7,647 at the 2010 census.-Geography:Tremonton is located at ....
- VineyardVineyard, UtahVineyard is a town in Utah County, Utah, United States. It is part of the Provo–Orem, Utah Metropolitan Statistical Area. The population was 150 at the 2000 census.Vineyard first became a distinct place in 1899.-Geography:...
(Non-pledging) - Washington City (Non-pledging)
- West Valley City
Service Providers
- XMissionXMissionXMission was the first and is one of the few remaining independent Internet Service Providers in Utah, United States, founded in late 1993 by Pete Ashdown. Starting in 2003, the company began providing free wireless in public libraries and some local businesses...
(data/voice) - Nuvont Communications (data/voice)
- Veracity Communications (business data/voice)
- FuzeCore (data/voice)
- Fibernet (data)
- InfoWest (data/voice)
- Integra TelecomIntegra TelecomIntegra Telecom is a privately owned, facilities-based, integrated telecommunications carrier and communications equipment provider headquartered in Portland, Oregon, United States. Founded in 1996, the company is one of the largest competitive local exchange carriers in the United States and...
(business data/voice) - Prime Time Communications (data/voice/video)
- Brigham.net (data/voice/video)
External links
- UTOPIA Home Page
- Mstar (Service Provider)
- Nuvont Communications (Residential Service Provider)
- Veracity Communications (Business Service Provider)
- XMission (Service Provider)
- FuzeCore (Service Provider)
- FiberNet (Service Provider)
- Integra Telecom (Service Provider)
- Prime Time Communications (Service Provider)
- DynamicCity's Home Page
- Brigham.net Home Page (Service Provider)
- PacketFront's Home Page (Purchased DynamicCity in Aug. 2007)
- FreeUTOPIA (Local advocacy for UTOPIA)