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Provo, UT City Council approves $39.5 million to build citywide fiber-optic system.

iProvo foe now will embrace the service

Turley cast lone ‘no’ vote but says ‘time for discussion is over’

By Laura Warner
Deseret Morning News

http://deseretnews.com/dn/view/0,1249,590037763,00.html

Now that iProvo is a reality, Steve Turley says he has no choice but to don a pleated skirt and grab some pom-poms to make sure the telecommunications network is a big success.

Tuesday night, however, the newly elected Provo city councilman played cheerleader for the other team, lending his voice to citizens concerned about approving a $39.5 million bond to finance a project that many called a risky venture.

"Before I risked such a significant liability on the part of the taxpayers, I wanted to know exactly what iProvo’s technology is," said Turley. "And since none of us know the answer, Steve’s vote was no."

After more than four hours of listening to heated public debate, however, Turley faced the realization that his hand of opposition was raised alone.

The bond was approved by the City Council on a 6-1 vote that now leaves Turley no option but to embrace the high-speed Internet, advanced cable television and telephone services that iProvo seeks to provide.

"The time for discussion is over," Turley said. "The time for implementation is here."

As of Wednesday, the bond market has been contacted to secure interest rates for the bond that will act as a catalyst for the fiber-optic telecommunications network, which will be built by the city and leased to private businesses.

The bond will use sales tax revenue as collateral until the city can reimburse the $39.5 million with service fees charged to iProvo subscribers. With an eight-figure price tag, however, it will take Provo an estimated 22 years to make repayment.

That liability frightened many iProvo opponents.

"This is a high-risk venture. You are imposing the risk on people who don’t have computers and will never access this," said Brigham Young University economic professor J.R. Kearl, who argued that the private sector has never attempted a similar project because there are too many potential risks in an ever-changing technological society.

Additional concerns about access to pornography and government interference with the private sector were also raised by those opposed to the telecom project.

"There is a huge problem with the filth and the sleaze that come with (new media). I simply do not feel like these services and the vast potential for danger to the family are worth it," said Dixie Baker, who organized an unsuccessful effort to put the iProvo decision on the ballot.

Turley also attempted to send the issue to a public vote, but was counseled by Provo City attorney Neil Lindberg that state statute doesn’t make a clear enough provision to allow that.

A representative for Comcast, a cable and Internet provider, didn’t seem concerned about having Provo residents vote on iProvo. Instead, he suggested that the entire issue be thrown out, since comparable technology is already available through his company, which has put $350 million into recent upgrades.

"Comcast has already invested millions of private money in providing infrastructure. We have thousands of miles of fiber-optics in Provo," said representative Steve Proper.

Residents from the Grandview neighborhood where iProvo has been installed on a trial basis, however, said that no other cable provider can compare to iProvo’s prices and 100-megabyte bandwidth.

"I currently have 139 channels" Monty Grossbeck told the council. "There are wonderful things to be seen thanks to iProvo."

Provo Power said construction will begin in May to provide the city’s 32,000 homes and businesses with a fiber-optic line within the next two years, though residents will have to sign up for the service in order to get connected.

Roughly a third of Provo residents will have to sign up for the venture to break even — a feat that Spanish Fork representative John Bowcut doubts will be difficult.

Since August, his town has provided a service similar to iProvo and has penetrated 60 percent of residential homes with a city-owned cable network.

"The success can be there," Bowcut said, "but you have to have the vision."

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