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I have a number of problems with this, not the least of which is the environment of fear, uncertainty, and doubt that this creates. You may recall that Provo had to have a number of meetings in the midst of Broadweave’s impending default to figure out what to do prior to the network being handed back to the city in worse shape than when it left. You may also recall that I had copious amounts of sharp criticism for Broadweave, all of which was based on the company history (or, more  precisely, the lack thereof), hearsay about the internal disfunction at the company, and confirmations that they had to continue to use a line of credit to continue making bond payments. In this case, Veracity is a company with a solid reputation, no reportable internal strife, and a healthy cash flow from other operations. In short, there is little evidence from that side that any kind of network trouble is in the works at all.

Unfortunately, the refusal to discuss the “plan” B and how likely or, in my belief, unlikely it may be in a public venue combined with a media tendency to puff up bad news (love you guys, but you do it way too much) has combined to create nothing more than a cloud of unfounded speculation and innuendo. While Broadweave was always tight-lipped about operations, Veracity has been very open with me and has pretty bluntly stated what they’re doing with the network: cross-subsidizing it while pursuing the only customers really left, the single-family homes. Given their strong presence in other markets, I don’t doubt their capability to do so. Selling millions of minutes of voice a month is much more stable than a thousand double-play customers in an insulated (and competition-free) housing development.

This kind of pessimistic journalism, while no doubt backed up by experience, is not new. UTOPIA regularly faces one-sided stories and unrebutted opinion pieces in all of the major dailies. The only paper that consistently seems to take their job of presenting all facts seriously has been The Davis County Clipper. This is simply unacceptable. There are a lot of people depending on the newspapers to get the story straight the first time, even if it means pushing back the deadlines so you can track down and talk to other sources.

(For the record, I actually agree with Royce Van Tassell on something: more open meetings are a Good Thing. I’ve been hounding UTOPIA for the better part of two years to toss more data out in the public. Provo shouldn’t resort to so much secrecy.)

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And if you want to, go take a look at the original press release.

Source: WhiteHouse.gov (warning: PDF)

h/t: Stimulating Broadband

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“We’re thrilled to have our first national provider join the network,” says Todd Marriott, UTOPIA’s executive director. “They have a solid reputation for value-add offerings and value-add service. Their unmatched quality in markets across the country will also be a tremendous benefit to customers on the UTOPIA network. And their decision to join the UTOPIA network is great validation of the improvements and growth we’ve seen over the last two years. The addition of PAETEC’s services to our already robust lineup is proof that open fiber networks just keep getting better – providing quality products and new, innovative services from scores of great providers.”

“PAETEC is the premier alternative to the incumbent telephone and cable companies, based on our nationwide footprint, breadth of products, and quality of service. And we’re excited to expand that footprint with UTOPIA,” says Arunas A. Chesonis, PAETEC’s CEO. “We’ve seen dynamic growth since we were found in 1998 because we believe in basic values – providing unmatched cost-effective solutions and first-rate customer service. There are many reasons why customers initially select PAETEC; however, the relationship established is what keeps them with us. UTOPIA has these same values and we’re excited to expand our offerings to more Utah customers.”

Today’s announcement makes PAETEC the 12th provider on the UTOPIA network. UTOPIA connects fiber directly to customers’ homes and businesses, allowing them to receive unmatched clarity and speed without interruptions from copper wiring and shared connections with neighbors.

The short of it is that the new era of competition that was supposed to be ushered in by the Telecommunications Act of 1996 flamed out almost as fast as it arrived. Incumbents have been actively thwarting wholesale customers to lock the market back up while claiming that they still have sufficient competition. Open networks like UTOPIA are the last chance to correct this market imbalance. And yes, it will be expensive and painful. Most mistakes are.