Report Predicts Death for iProvo

None by KCPW

(KCPW News) A Libertarian think tank is predicting that Provo City's municipal broadband service will soon die. The service known as iProvo has struggled since it began offering connectivity two years ago. Reason Foundation Researcher Steven Titch says the set-up was flawed from the start:

"iProvo is a government creation and thus it's prone to all the drawbacks a government creation has - management not geared toward profit, but more toward falling in line with costs and budgets."

To Provo's credit, Titch says city officials chose the plan with the best chance of success by owning the backbone but contracting with private companies for front end services.  But as a government agency, Titch says iProvo underestimated the competition it would face from other broadband providers and is still far from breaking even. That's not uncommon with municipal broadband, says Titch.

"They keep hoping they're going to get over the hump and they never do. Then sooner or later the town or city decides they'll either have to shut down, stop construction or sell the system."

Titch estimates about 20 cities nationwide are struggling with similar systems to iProvo. Provo City officials acknowledge the free-market bias of the Reason Foundation report and are currently reviewing its findings.

Email to a friendPosted in KCPW Newsroom. Copyright 2008 KCPW