Telecom in the city. Critics of taxpayer-funded Net systems point to financial losses

An ambitious experiment with municipally owned broadband systems in Utah is going strong, but with recent losses at i-Provo and the Spanish Fork Community Network, critics once again are questioning the wisdom of such endeavors.

Qwest and Comcast, the state’s largest telecommunications and cable company, were critical of city-sponsored broadband initiatives from the beginning. They’ve challenged the financial viability of such projects as the UTOPIA network – a $340 million fiber-optic-to-the-home venture now under development in 11 Utah communities – and even lobbied state lawmakers two years ago to restrict their development.

Now, the nearly $1 million loss reported in late February by Provo’s fiber-optic system and an anticipated annual loss of between $100,000 and $350,000 in Spanish Fork may strengthen critic’s arguments that cities are throwing away taxpayer money in an ill-advised attempt to compete with private enterprise.

By Steven Oberbeck
The Salt Lake Tribune

Full Story: http://www.sltrib.com/business/ci_3715028