Utah Telecommunication Open Infrastructure Agency

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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.

Contents

[edit] 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.

[edit] 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 has 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.

[edit] 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.

[edit] Types of Service

  • Phone
  • Video
  • Internet (Data)

[edit] Service Providers

[edit] Network Management/Design

  • DynamicCity (Purchased by PacketFront Inc. Aug. 2007)

[edit] External links

Retrieved from "http://en.wikipedia.org/wiki/Utah_Telecommunication_Open_Infrastructure_Agency"
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