HomeNet departure doesn’t rattle iProvo

The departure of its initial service provider has brought negative publicity to iProvo, one of the more high-profile municipal fiber optic networks now under construction. But its operators say the network is actually exceeding projected subscriber rates and making up for some lost time in its construction schedule.

HomeNet, which was the exclusive service provider to iProvo, the fiber optic network built and owned by Provo City Power, withdrew from the project earlier this summer – along with a Grant County, Wash., network – because the company has changed its focus according to Michael Devine, president. HomeNet will now focus exclusively on projects “where we can own or control the network,” he said.

The city was already in the process of lining up two additional retail service providers, which were to join HomeNet in offering service over the iProvo network, when it learned of that company’s decision to leave, said Mary DeLaMare-Schaefer, spokeswoman for iProvo. HomeNet had turned up its first customers in January.

“It was always our intent to add service providers--everybody knew it, and the timing was established,” she said. “The RFQ went out in April, and we chose two new retailers. Now instead of having three choices, our customers will have two, but we are excited about having multiple retailers available.”

HomeNet is selling its subscribers to the two new retailers, Veracity Communications and MSTAR Metro, according to DeLaMare-Schaefer.

“They have told us they want to take the business in a new direction,” she said.

At least one report of HomeNet’s departure said iProvo also was suffering from stagnant subscription rates and financial shortfalls, but Paul Venturella, telecommunications manager for the city of Provo, said that isn’t the case. “We did get off to little bit of a late start,” he said. “It was a matter of a four to six months, while we got contracts for construction and the financing in place. Since we’ve gotten started, construction is actually running ahead of schedule and it’s coming in below project costs.”

In the one area where the service has been available at least six months, the penetration rate is 32%, which is above the 27% projected rate, DeLaMare-Schaefer said.

“We are still very early in the process,” she said. “The network is being built in eight phases and we just started the third phase.”

Network construction will be completed by next July, Venturella said.

In areas where iProvo’s services are available, Comcast and Qwest are fighting back with lower prices and new packaging, he said. “So even people who are subscribing to our service are getting a benefit out of this.”

To date, the major complaint from local residents is from those who see the network construction trucks and call up, thinking they can immediately order service. “We get a lot of those calls,” DeLaMare-Schaefer said.