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Eighteen Utah Cities Collaborate to Build High-Speed Fiber-Optic Network

Posted on: Wednesday, 19 November 2003, 06:00 CST

Nov. 18--PROVO, Utah--Eighteen Utah cities have joined together to bring an ultra-high speed fiber optic network to their communities.

Called the Utah Telecommunications Open Infrastructure Agency, or UTOPIA, the network will provide wholesale access to private companies who can offer Internet, voice, television, video on demand, home security and other services.

Top of Utah cities that are part of UTOPIA are Brigham City, Centerville, Layton, Perry, Roy and Tremonton.

The initial cost to build the fiber optic highway is estimated at $420 million. UTOPIA is looking at using bonds to fund the project.

If financing goes through as hoped, some customers could be hooked into the UTOPIA network by the end of 2004.

The network will allow Internet access that is 100 times faster than current commercial residential services, and 10 times faster than cable or T-1 services and would cost consumers about the same as a high speed cable connection or less.

Paul Morris, West Valley city attorney, is UTOPIA executive director.

Morris has been a telecommunication lobbyist in Utah for over 20 years, and was involved with the 2001 passage of House Bill 149, which allows cities to provide fiber optic services on a wholesale basis. After talking with city planners and economic developers throughout Utah, Morris noticed a common need for reliable access to high speed data.

"UTOPIA is vital to the economic growth of these cities," said Morris. "It will give them the infrastructure they need to attract new businesses to their communities, and provide a reason for existing businesses to stay."

Such is the case for Brigham City, who contracted a fiber optic network feasibility study before UTOPIA was formed. Paul Larsen, economic development dirctor for Brigham City, has struggled with problems that arise from not being able to provide local businesses with the high speed Internet access they can have elsewhere.

UTOPIA plans to utilize the excess fiber lines that are already in place. Morris likened UTOPIA to being the "fingers" to individual customers reaching out from the fiber-optic "arms" already in place.

"Basically we are providing the 'last-mile solution' to the people of Utah," said Morris. "Our goal is to go down every street, and provide access to every address in the cities that sign up for the program. Then each home and business can decide if they want to use the services."

Estimated costs to do this is approximately $1,200 per household.

Revenues earned from private sector service providers over the next 20 years will pay off the cost of building the infrastructure.

UTOPIA is currently negotiating financing options, and is considering asking each city involved to pledge long-term guarantees to make the interest rate on the bonds more affordable.

Roger Black, CEO of Utopia is optimistic about the project.

"We're not reliant on any breakthrough services to make this work," he said.

UTOPIA projects revenues will be profitable between 2007 and 2008, and studies show that at the end of 10 years, 55 percent of households will sign up for one or more services offered through the network.

The other cities involved in UTOPIA are Cedar City, Cedar Hills, Lindon, Midvale, Murray, Orem, Payson, Riverton, Salt Lake City, South Jordan, Taylorsville and West Valley City.

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To see more of the Standard-Examiner, or to subscribe to the newspaper, go to http://www.standard.net

(c) 2003, Standard-Examiner, Ogden, Utah. Distributed by Knight Ridder/Tribune Business News.

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