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Orem on UTOPIA: We want in on $543 million fiber-optic network proposed to provide 17 Utah cities with high-speed Internet, phone and cable.

Neither threats from private providers nor angst over the proper role of government could persuade Orem’s City Council to pull out of UTOPIA.

"I don’t believe government should be involved in areas it doesn’t belong," Councilman Doug Forsyth said. "I do believe we belong here."

By Mark Eddington
The Salt Lake Tribune

http://www.sltrib.com/2004/Mar/03122004/business/147000.asp

With its unanimous vote this week, the council essentially committed Orem to set aside $2.19 million in tax revenue annually over two decades as collateral for the $543 million fiber-optic network proposed to provide 17 Utah cities with high-speed Internet, phone and cable.

Orem’s tax money will not be tapped if UTOPIA’s bottom line is healthy — in other words, if operational revenues cover costs.

Don’t count on it, warned representatives of Qwest and Comcast, private Internet providers to the area.

Jerry Fenn, Qwest’s Utah president, warned that UTOPIA could be a boondoggle for taxpayers if any one of three things happen: network building costs exceed estimates, new technology renders fiber optics obsolete or too few subscribe to the network.

UTOPIA aims to lay fiber-optic line so that every home and business in participating cities could tap into it. The consortium then would lease space on the system to private providers, who in turn would enlist subscribers.

AT&T has signed on to become a provider. But representatives of Qwest and Comcast told Orem’s council that their companies would never lease space on the network.

"We’re here to compete, and we’re here to stay," Comcast spokesman Steve Proper said. "God forbid if we lose a customer. We’ll do everything in our power to get that customer back."

Orem Mayor Jerry Washburn and all six council members are optimistic about the network’s prospects for success.

Forsyth said if Comcast and Qwest had stepped up to provide the technology and level of service residents need, the council would not be having the discussion.

Instead of helping residents, other council members added, Qwest and Comcast were more interested in protecting their monopoly and perceived substandard service from competition.

Most residents, who milled around almost six hours at Wednesday night’s meeting, expressed similar sentiments.

"Pigs get fat; hogs get slaughtered," Orem resident Tim Clawson said. "I’m afraid it’s time these hogs are going to get slaughtered."

UTOPIA foes, however, will have one more stab at dissuading boosters from backing the network. Once the actual funding plan for the network is ready, Orem leaders will hold one more public hearing and vote whether to give their final approval.

Orem is the ninth Utah city to pledge tax revenues to back the network. Thus far, South Jordan is the only city to opt out.

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