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Provo's Fiber-optic Network Operating at a Loss

Provo's Fiber-optic Network Operating at a Loss



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PROVO, Utah (AP) -- Provo's fiber-optic telecommunications network delivers residents Utah's fastest cable Internet connection. But it's also draining the city's budget faster than users can point and click.

Balance sheets for July and August show iProvo operating at a deficit of $112,403 each month -- more than $100,000 in monthly losses city leaders expected.

In June the city council budged $1.2 million to cover expected losses for the 2007-08 fiscal year. If July and August are a signpost for real expenditures, Provo will need another $700,000 in its budget to operate the network through the year.

iProvo has about 10,000 subscribers, including residential and business customers. Under a current marketing plan, new subscribers get three free months of service before having to pay.

A project manager says a proposal to expand the network to more subscribers could help cover the budget shortfall.

(Copyright 2007 by The Associated Press. All Rights Reserved.)

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