Look Out Google Fiber, $35-A-Month Gigabit Internet Comes to Vermont. Shalini Ramachandran

Heads up Google Fiber: A rural Vermont telephone company might just have your $70 gigabit Internet offer beat.

Vermont Telephone Co. (VTel), whose footprint covers 17,500 homes in the Green Mountain State, has begun to offer gigabit Internet speeds for $35 a month, using a brand new fiber network. So far about 600 Vermont homes have subscribed.

VTel’s Chief Executive Michel Guite says he’s made it a personal mission to upgrade the company’s legacy phone network, which dates back to 1890, with fiber for the broadband age. The company was able to afford the upgrades largely by winning federal stimulus awards set aside for broadband. Using $94 million in stimulus money, VTel has invested in stringing 1,200 miles of fiber across a number of rural Vermont counties over the past year. Mr. Guite says the gigabit service should be available across VTel’s footprint in coming months.

VTel joins an increasing number of rural telephone companies who, having lost DSL share to cable Internet over the years, are reinvesting in fiber-to-the-home networks. 

The Wall Street Journal reported earlier this year that more than 700 rural telephone companies have made this switch, according to the Fiber to the Home Council, a trade group, and CalixInc. CALX +5.13%, a company that sells broadband equipment to cable and fiber operators. That comes as Google’s Fiber project, which began in Kansas City and is now extending to cities in Utah and Texas, has raised the profile of gigabit broadband and has captured the fancy of many city governments around the country.

“Google has really given us more encouragement,” Mr. Guite said. Mr. Guite said he was denied federal money for his upgrades the first time he applied, but won it the second time around–after Google had announced plans to build out Fiber.

Incumbent cable operators have largely downplayed the relevance of Google’s project, saying that it’s little more than a publicity stunt. They have also questioned whether residential customers even have a need for such speeds.

Mr. Guite says it remains to be seen whether what VTel is doing is a “sustainable model.” He admits that it’s going to be hard work ahead of VTel to educate customers about the uses of gigabit speeds. Much like Google Fiber in Kansas City, VTel has been holding public meetings in libraries and even one-on-one meetings with elderly folks to help them understand what gigabit Internet means, Mr. Guite said.

http://blogs.wsj.com/digits

Google Fiber Comes To Provo, Utah. Alex Lawrence.

This doesn’t come free, however. The city is making Google a very sweet deal: get the existing network for free, and they’ll finish the remaining $39.6M in bond payments over the next twelve years. Google only has to spend an estimated $18M to build a network that, based on costs from UTOPIA and other fiber networks, could easily cost $90-100M to do from scratch. They also reserve the right to pack it up and halt the service after a seven year commitment. The city still has a repurchase right, but it could be left scrambling for a solution in that event.

What makes the arrangement in Provo so unique is the existing network. The terms in Kansas City and Austin are more-or-less the same: no franchise fees, unlimited right-of-way, and they can quit after the commitment period. In both of those cases, they’re not really giving up much to get the network. Provo is putting a lot more on the line. They are, however, getting a few more concessions. City facilities will get free gigabit service. The one-time fee for the low-end service is 1/10th that of other cities.

For most users, the choice is clear. The only other viable gigabit option in the state, UTOPIA, charges $300 per month and a one-time install fee of $2,750, albeit you get a choice of several providers and can pick up phone service. You don’t even want to know what CenturyLink or Comcast would ask for. (Hint: it’s about ten times as much.) It’s hard to argue with the basics of the deal.

Some users may not like the privacy implications of letting Google be in a position to be aware of their Internet habits and TV watching. As the only choice on the network, it doesn’t offer the kind of service provider flexibility that UTOPIA users have come to enjoy. Google is also not exactly renowned for their customer service ability.

For the city, it may be less clear. Giving up tens of millions of dollars in potential network value may or may not pay off in the long term. Google may decide that this is something they want to stick with, or, like they’ve done with so many services (looking at you, Reader), they may decide that it was fun while it lasted and pull the plug at the end. If you built your entire business around their service, you could be left in a very serious and expensive lurch.

Another downside is that many broadband users, instead of trying to solve the problems of broadband access for themselves, may opt to hold off to see if Google will come to their neighborhood for free. I’d like to think that all technologists can agree that broadband is an essential commodity service, and the current state of it is lackluster at best. Giving users a sense of false hope for a white knight savior may stifle my own efforts to build a gigabit cooperative here in my neighborhood.

It’s easy to get excited by being in the national press for a system that most users can’t even dream of. But let’s not be blind to the potential downsides as a result.  

Alex has been a successful entrepreneur for 20+ years. His current ventureLendio ranks #34 on the Inc. 500 list. Alex earned a BS degree at the University of Utah and his MBA at Weber State University, where he is Vice Provost and Director of the Entrepreneurship Program. 

Alex Lawrence. email him (alex AT startupflavor DOT com), or you can find him on Twitter @_AlexLawrence.

City of Provo actually has to pay for Google to take over its struggling fiber network. Jolie O'Dell. Venture Bear.com

                                       Image credit: Confession Bear/Internet meme

iProvo, a financially distressed fiber Internet service in Provo, Utah, is being sold to Google — for a whole dollar. The city, meanwhile, will have to pay millions to close the deal and to pay off bonds used to build the network in the first place.

Provo has been recently celebrated as the newest Google fiber city. Google Fiber, the company’s super-fast Internet service, will be provided to Provo citizens and many public institutions, such as schools, free of charge for seven years. Google’s also footing the bill for upgrading network equipment.

However, the city government will have to fork over $722,000 for equipment so it can keep using the original iProvo-laid fiber network it’s already on. And since shoddy record-keeping was apparently part of iProvo’s checkered past, the city will also have to pay a tidy half million, give or take, to figure out where the network’s fiber cables are located.

However, this mess isn’t necessarily Google’s fault. A quick perusal of old newspaper articles and blog posts shows iProvo was a financial disaster long before the search giant came to town with its gigabit service and its fancy branding.

Just two years after its completion, iProvo was posting $8 million loses over several years, with losses accelerating after construction had been completed.

The same year, Provo sold the network to Broadweave Networks of Lehi, Utah, for $40 million. Broadweave was then acquired by Veracity Networks. But somehow, the city of Provo still owns the debt for a $39 million bond that was used to funding iProvo’s construction.

In a statement last week, Veracity CEO Drew Peterson said, “Like many other Provo residents, Veracity is pleased with today’s announcement by Google and what appears to be a large future investment in our community. We are anxious to hear more.”

Jolie O'Dell. Venture Beat

Report: Google Buying Provo Fiber Service for $1. Angela Moscaritolo.

Residents of Provo, Utah got some good news this week when Google announced plans to buy a city-owned fiber-optic system and upgrade it to ultra fast gigabit technology.   But just how much does one pay for a city-wide fiber network? If you're Google, the answer is $1, according to a new report from The Associated Press.

The news outlet got its hands on a copy of Google's agreement with Provo, and it offers up some interesting details about the deal. Namely, the so-called iProvo network, which cost $39 million to build, will cost Google just one dollar.

Moreover, even when Google takes ownership of the network, the city will have to pay off its construction loans for another 12 years, the agreement reportedly notes. It might sound like Google is making out like a bandit, but city officials said it's a good deal for both parties since the 9-year-old system has as of yet struggled to break even. Google will also incur costs building out the network and providing service.

In a blog post Residents of Provo, Utah got some good news this week when Google announced plans to buy a city-owned fiber-optic system and upgrade it to ultra fast gigabit technology. But just how much does one pay for a city-wide fiber network? If you're Google, the answer is $1, according to a new report from The Associated Press.

The news outlet got its hands on a copy of Google's agreement with Provo, and it offers up some interesting details about the deal. Namely, the so-called iProvo network, which cost $39 million to build, will cost Google just one dollar.

Moreover, even when Google takes ownership of the network, the city will have to pay off its construction loans for another 12 years, the agreement reportedly notes. It might sound like Google is making out like a bandit, but city officials said it's a good deal for both parties since the 9-year-old system has as of yet struggled to break even. Google will also incur costs building out the network and providing service.

In a blog post earlier this week, Provo Mayor John Curtis called iProvo "troubled" and said it has been a "personal goal" to find a viable solution for the network.

On that front, it looks like Google has a contingency plan if things go awry. According to the AP, the agreement gives Google the ability to sell the network back to the city for — you guessed it — $1 "if things don't work out."

Meanwhile, another clause in the agreement gives Google the option to build an extensive public Wi-Fi network in the city, enabling people in the area to tap into the Internet on their mobile devices. Residents shouldn't get too excited about the Wi-Fi option just yet, however, as there are no guarantees that it will actually happen.

 earlier this week, Provo Mayor John Curtis called iProvo "troubled" and said it has been a "personal goal" to find a viable solution for the network.

On that front, it looks like Google has a contingency plan if things go awry. According to the AP, the agreement gives Google the ability to sell the network back to the city for — you guessed it — $1 "if things don't work out."

Meanwhile, another clause in the agreement gives Google the option to build an extensive public Wi-Fi network in the city, enabling people in the area to tap into the Internet on their mobile devices. Residents shouldn't get too excited about the Wi-Fi option just yet, however, as there are no guarantees that it will actually happen.

The deal must be approved by the Provo City Council at a meeting on Tuesday. If it passes, Provo will be the third city with access to Google's super-fast fiber Internet and television service after Kansas City and Austin.

Angela Moscaritolo. PCmag.com

Lessons learned from iProvo and Google Fiber. Brennan C. Platt is an Assistant Professor of Economics at Brigham Young University.

                                    Governor Gary Herbert, Provo Mayor John Curtis, and Representative Rebecca Lockhart, from left, celebrate the announcement of Google Fiber coming to Provo at the Utah Valley Convention Center in Provo on Wednesday, April 17, 2013. JAMES ROH/Daily Herald.

                                                Salt Lake Tribune.

But this is also an important teaching moment about the proper role of government. Provo should never have sponsored this network, and we have paid a hefty price for this misadventure. This is not mere hindsight. Members of BYU's Economics Department specifically warned against the project during its inception. Their concerns were dismissed, yet history vindicates every point.

First, the market for Internet service, while not perfect, was competitive; it's not like there was some huge cache of potential customers waiting to join the Net. The city was laughably optimistic about the number of subscribers, and also over-estimated what fraction of subscribers would sign up for more than basic service.

Second, while fiber is cool, it is clearly not "future-proof," as claimed at the time. Exhibit A is that Google will spend $20 million to upgrade the system that runs the fiber. Consider also how technology has evolved in the decade since the project was conceived; wireless networking has greatly increased its speed and range, and cellular data has moved from a novelty to a mainstay of most cell phone plans. In the long run, it's still unclear whether and how long wired internet connections will be relevant. It was remarkably presumptuous of the city to make that bet.

Most importantly, Internet service is far outside the essential role of government. We clearly need government to establish and enforce laws which protect us and our property rights. There's an argument for regulation to restrict monopoly power or limit harm to bystanders, as with pollution. We may see a role for charitable care through the government. But one would have to be a contortionist to stretch any of those to include internet access. In spite of the city's reputation of having a highly conservative population, I ask where were our political principles when we needed them?

And so I say, thank you Google for buying our network at the appropriate price of $1. I should note that two years ago, BYU economists advised Mayor Curtis to sell the fiber at ANY price, so as to end the open-ended commitment of pouring money into the network. Now we have clear evidence of what that system was worth in its current state ($1) and how big that open ended commitment could have been ($20 million). I, for one, applaud the Mayor's actions in explicitly making the city's obligations apparent and diligently finding the best possible exit strategy.

Let's just remember, this one dollar's worth of fiber actually cost $40 million from subscribers, business failures, and ultimately, resident fees. Indeed, each utility customer will continue paying a $5.35 "telcom debt charge" per month for years to come. Please, let your monthly utility bill stir thoughts about the proper role of government. If this reflection somehow prevents citizens and politicians alike from future misadventures into private enterprise, it just might be worth it.

Brennan C. Platt

Salt Lake County 2013 Organizing Convention Election Results Including State Central Committee

2013   Organizing Convention
Official Officers   Tally Sheet
Chair
No.	Candidate	Total	%
1	Chad Bennion	350	73.7%
2	Mike Livsey	125	26.3%
Vice Chair
No.	Candidate	Total	%
6	Suzanne Mulet	336	70.4%
7	Jared Allebest	141	29.6%
Secretary
No.	Candidate	Total	%
11	Michelle Hunt	277	58.3%
12	Gary Welch	198	41.7%
Treasurer
No.	Candidate	Total	%
16	Melvin Nimer	408	100.0%

.

Salt Lake County Republican Party
2013 Organizing Convention
Official State Central Committee Tally Sheet
No.	Candidate	Tally		No.	Candidate	Tally
51	Sean D. Reyes	379		17	Michelle Mumford	188
23	Julie Dole	373		28	Larry Jensen	183
15	Chad Bennion	361		2	Merrill Cook	181
1	Gary Ott	357		49	Phoenix Roberts	177
40	Richard Snelgrove	348		57	Dana Goff-Hicks	168
44	James Evans	337		46	Carlene Walker	166
24	Marco Diaz	325		3	Glen Cook	157
43	Cherilyn Eagar	319		4	Kim Coleman	156
39	Ben Soholt	302		33	Ron Hilton	153
56	Janene Gourley	297		27	Fred Johnson	152
21	Tifanie Pulley	296		10	Bryce Christensen	143
7	Fred Cox	290		22	Jake Parkinson	140
61	Rob Anderson	289		14	Jared Belcher	136
53	Merlynn Newbold	270		9	Jessica Christopher	134
12	Alan Crooks	258		16	Jeff Morton	123
55	Daniel Thatcher	253		59	Patti Florence	117
62	Rick Votaw	253		32	John Hohlbauch	115
60	Christy Achziger	247		8	Eric Chesley	114
34	Michelle Hunt	246		35	Jonathan Hall	106
42	Barbara Stallone	241		31	Casey Jackson	97
38	Mike Livsey	229		48	Patricia Robinson	89
25	Lyle Decker	226		6	Kurtis Constantine	86
45	Gary Welch	224		11	George Chapman	79
52	Melvin Nimer	209		29	Ash Jenkins	70
5	Phil Conder	205		54	John Thibeault	62
37	Austin Linford	202		30	David Jack	59
20	David Pyne	199		18	Annette Malen	53
13	Daniel Burton	192		19	Mary Maughan	38
36	Steve Harmsen	191		26	David Johnson	38
47	Julie Warburton	190		58	Henry Glasheen	33
50	Helen Redd	188		41	Peter Strand	32

.
*Column 1 contains the 30 State Central Committee Members that were elected. Because the Salt Lake County Chair also has a seat on the committee, the top 30 candidates, not including the Chair Chad Bennion, are the new State Central Comittee members.  In the event of a tie, Convention rules state that the flip of a coin is used as the tie breaker, so Helen Redd has become our last member of the SCC.

Candidates who filed for Utah County Party Office in 2013

The SCC member allocation per district is:

District	Scc Members
7 & 24	4
13 & 11	4
14	5
15	4
16	3
27	1
	21

Filing Deadline 4/20/13 5:00pm County Chair Name Phone Email Website David J Acheson (801)226-6250 dacheson@gmail.com Casey Paul Voeks (801)837-3548 caseyvoeks@gmail.com County Vice Chair Name Phone Email Website Howard Patrick Holman (801) 796-1686 pat.holman@gmail.com http://www.linkedin.com/in/patholman/ Randy John O'Hara (801)702-7090 Randy@RandyOHara.com http://www.facebook.com/randytherepublican Daryl Acumen (435) 238-4000 FireObama@AllCosts.com http://GOPCenter.com County Secretary Name Phone Email Website Kirby Glad 801.376.2050 Kirby@KirbyGlad.com http://KirbyGlad.com Christy Kane (801)735-5971 christy@dbecenter.com County Treasurer Name Phone Email Website Joseph Lee Smith (801)788-4913 joeysmithld60@gmail.com State Central Committee - Senate District 7 (Combines with Dist 24 to elect 4) Name Phone Email Website Lisa M Shepherd 801-787-8211 lisamshepherd@gmail.com Juliann Pate Blaney (801) 885-1007 blaneyjulie@hotmail.com Amelia A Powers (801)367-9856 amelia.powers@hotmail.com Yancee Michael Hardy (801)859-9347 yancee@gmail.com Scott Ward (801)805-8239 scott@utahgopguy.com Preston Curtis Davis (801)465-0311 prestondavis2010@hotmail.com Tamara Suzanne Atkin tspatkin@gmail.com Kari L Malkovich (801)423-2947 klmalkovich@gmail.com Sherrie Hall Everett sherrie.provo@gmail.com Keri Witte (801) 377-8448 keri@linkrealms.com http://keriwitte.wordpress.com/ State Central Committee - Senate District 11 (Combines with Dist 13 to elect 4) Name Phone Email Website State Central Committee - Senate District 13 (Combines with Dist 11 to elect 4) Name Phone Email Website Heather Williamson (801)995-5365 williamson.heather@ymail.com Melissa R Gonzalez (801)318-0022 melissagonzalez1@gmail.com Jacob Lindsay Anderegg (801)864-0790 anderegg.jake@gmail.com David Evan Lifferth 801-358-9124 dave_lifferth@yahoo.com http://www.DavidLifferth.com Rebecca Michele Pirente pirentefamily@hotmail.com Jay Morgan Philpot 8018904650 morgan@philpotforgovernor.com Jacob Lindsay Anderegg (801)864-0790 anderegg.jake@gmail.com State Central Committee - Senate District 14 ( Elect 5) Name Phone Email Website Kirby Glad 801.376.2050 Kirby@KirbyGlad.com http://KirbyGlad.com Daryl Acumen 435.238.4000 FireObama@AllCosts.com http://GOPCenter.com Mark A Steele 801.610.2114 steele.ma@gmail.com http://steelescc.blogspot.com/ Dave Duncan (801)224-5329 dave@duncans.org http://duncans.org/ucrpchair/ Randy John O'Hara (801)702-7090 Randy@RandyOHara.com http://www.facebook.com/randytherepublican Benjamin L Anderson 7752738349 b.l.anderson@gmail.com Holly Joy Richardson (801)369-2836 hollyonthehill@yahoo.com www.HollyontheHill.com Lowell Call Nelson (801)763-8046 lowell@netdocuments.com Brian M Greene (801) 260-2020 brian@briangreeneld57.com briangreeneld57.com Kraig Ashby Thorne 801 kraigthorne@yahoo.com Howard Patrick Holman (801) 796-1686 pat.holman@gmail.com http://www.linkedin.com/in/patholman/ Craig Allan Frank (801)362-3171 craigallanfrank@hotmail.com David W Christiansen (801)763-0908 tonyrd43@hotmail.com Christy Kane (801)735-5971 christy@dbecenter.com Rodney W Mann 801-847-2051 mannrw@gmail.com Kenneth Wayne Sumsion (801)422-1126 kwsumsion@gmail.com State Central Committee - Senate District 15 ( Elect 4) Name Phone Email Website Adrielle Lynn Herring (801)362-6075 adrielleherring@hotmail.com Vance Hawkins (801)225-8663 avoforaf@gmail.com Arturo Morales-llan (801) 368-3660 realtor4utah@msn.com Reed Johnson Farnsworth (801) 358-8613 reed@farnsworth.us Jared Lee Jardine (801)224-0743 jared@jardinefam.com Brandon C Beckham (801)800-3888 brandonorem40@gmail.com Brian Earl Jenkins (801)636-0969 Tai Ward Riser tairiser@msn.com William Hacking Fowlke (801)787-2269 wfowlke@sisna.com State Central Committee - Senate District 16 (Elect 3) Name Phone Email Website Michael Adam Melendez (801) 821-8058 zosomm90@gmail.com Joseph Lee Smith (801)788-4913 joeysmithld60@gmail.com Thomas Klark Kelemen (801) 494-3417 kelemen@byu.edu Leo L Lines (801)636-0268 gopleo@whd93.com Cindy L Richards (801)374-1245 crichardsprovo@gmail.com Diane B Christensen (801)372-5700 idahorupert@hotmail.com Christopher Niles Herrod 801-368-3117 cnherrod@yahoo.com Val Hale (801)226-74878 val_hale@comcast.net State Central Committee - Senate District 24 (Combines with Dist 7 to elect 4) Name Phone Email Website State Central Committee - Senate District 27 ( Elect 1) Name Phone Email Website April Taylor Clawson 801-491-0630 aclawson52@msn.com Michael A Sizer (801)830-6326 Mikemizer@hotmail.com Paul Jack Baltes (801)378-3231 paulb@constantcrowd.com Paul Jacks (801)37 8-3231 paulb@constantcrowd.com