Utah fiber-optic network UTOPIA may grow, giving Bountiful new internet options – Standard-Examiner

BOUNTIFUL UTOPIA, the city-owned fiber-optic network serving Layton, Centerville and many other Utah communities, may be extending its reach to another Davis County community, Bountiful, augmenting high-speed internet offerings.

Unlike Layton and Centerville, though, Bountiful wont contribute funds to build out the network, shielding it from any risk associated with the systems development. UTOPIA which proponents say offers among the fastest internet speeds in Utah was the target of intense criticism in a 2012 state report that faulted operators at the time for mismanagement, though the current leader, Roger Timmerman, say its since turned things around.

This is just kind of a natural progression out of the Salt Lake Valley, said Timmerman, executive director of UTOPIA, which stands for Utah Telecommunication Open Infrastructure Agency. The dealbrings more options to Bountiful, aside from incumbent high-speed internet providers like Comcast, which offers its XFINITY service via cable, and CenturyLink, which taps phone lines.

The Bountiful City Council last week agreed to grant UTOPIA a franchise agreement, letting it extend its network into the city for use, most likely, by commercial customers. Per the arrangement, would-be Bountiful customers, not the city, would likely help finance the networks build out to hook into the system.

UTOPIA, formed in 2002, manages and maintains a fiber-optic network thats leased by private internet service providers that offer high-speed internet, telephone and other services to commercial and residential end users.A handful of member cities, like Layton and Centerville, own it and have helped provide funds and financing to build the UTOPIA network, aiming to improve connectivity in their communities.

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But a growing number of cities around Salt Lake City and now Bountiful have approved franchise agreements, allowing for expansion of the system without any financial obligation to them, Timmerman said.

If UTOPIA and its member cities find that providing services to customers in neighboring cities benefits their operation, then it could be a win-win for both UTOPIA and non-UTOPIA cities alike, Bountiful City Councilman Richard Higginson said in an email.

The firm is aproven player, he said, also noting that Bountiful doesnt have to put up any funding per the franchise agreement. It just has to grant UTOPIA access to right-of-way so it can install the necessary infrastructure to reach customers.

Im happy for residents and businesses in Bountiful to have access to as wide a variety of high-speed data/streaming/entertainment options as possible, Higginson said.

Aside from Layton and Centerville, UTOPIAs member cities include Tremonton and Brigham City to the north and West Valley City, Orem, Payson and four other cities farther south. Cities with franchise agreements, like Bountiful, include Salt Lake City, Draper, South Jordan and Pleasant Grove, Timmerman said.

Facilitating potential expansion into Bountiful is the existing UTOPIA fiber-optic line along Interstate 15 just to the west of the city, Timmerman said. He also noted the well-developed networkin Centerville just to the north.

I would guess we would start with a handful of businesses near existing lines and then kind of grow it from there, Timmerman said. Though Higginson expressed optimism the service could extend to homes, Timmerman said commercial clients in Bountiful would be the most likely customers.

At any rate, he said the existence of a new option for provision of high-speed internet is a good thing for consumers because it creates more competition, potentially bringing more competitive pricing among all service providers.

Exceptionally low churn rate

Since the criticism aimed at UTOPIA in a 2012 report by the Office of the Legislative Auditor General, Jesse Harris, who works in Utahs tech industry and is a UTOPIA proponent, says the entity has changed for the better. The report faulted UTOPIA for poor planning in building its network and working with unreliable business and financial partners, among other things.

Since then, UTOPIA has adopted a new strategy in building the network, seeking sufficient numbers of customers before building out, thus assuring a revenue source to cover expansion costs.Theyre actually generating enough revenue to cover operating costs at this point, Harris said.

Nine private providers offer internet service via UTOPIA, though not Comcast or CenturyLink, and Harris said the churn rate among their customers isexceptionally low. Comcast and CenturyLink have been invited to use the UTOPIA network, but have declined the offers.

Centerville Mayor Paul Cutler echoed Harris remarks, while acknowledging the bumpy past. More than 80 percent of Centerville has access to the UTOPIA network and a third of households in the city actually have service from providers that use the network.

What we find is once people get (service via UTOPIA), they dont give it up, he said.

Contact reporter Tim Vandenack at tvandenack@standard.net, follow him on Twitter at @timvandenack or like him on Facebook at Facebook.com/timvandenackreporter.

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Utah fiber-optic network UTOPIA may grow, giving Bountiful new internet options - Standard-Examiner