As broadband stimulus funds flow into public/private partnerships, they are sure to reveal cracks that still exist in our understanding of how to balance public and private interests in telecom successfully.
Tonight the city council in Provo, Utah will discuss whether to grant a request to reduce monthly payment obligations from Broadweave Networks, which acquired the city’s struggling fiber-to-the-home network last year.
Broadweave argued it could turn the fiber operations around by replacing its open, wholesale-only model with one in which it played both the role of service provider and network operator. It’s not clear yet that the strategy will be successful. Now Broadweave wants to merge with one of the service providers on the network, Veracity Communications, using the temporary break in payments to the city — $1.5 million over two years – to get the combined operation up to speed. And that plea for financial help is raising concerns. more