American Fork is selling 16% of its fiber optic network to UTOPIA for 1.5 million dollars as reported by the Daily Herald:
Both parties will sign a contract on Monday, said Paul Morris, executive director of UTOPIA.
In 2002, American Fork purchased nearly 60 miles of fiber between Salt Lake City and Spanish Fork from SwitchPoint for $6 million to use as part of a high-speed broadband system. The city floated a bond to pay for the system.
Money from the sale to UTOPIA will allow the city to upgrade its network, said Councilman Keith Blake.
"It will create some funding for the city," he said. "It can provide better service if that money goes into the network."
Morris said UTOPIA decided to buy the American Fork fiber as part of its work to bring service to Payson residents.
UTOPIA is made up of 14 Utah cities. The conglomerate was created to build a municipally run fiber-optic network that provides high-speed Internet, phone and video services to homes and businesses, including Orem, Lindon, Payson and Cedar Hills. Of the original 18 cities, 11 remain and have pledged tax revenues to support part of the $340 million in bonds needed to build the network.
Construction is under way on the first phase of UTOPIA to serve 50,000 homes and businesses in seven cities including Orem, Lindon, Murray, Midvale, West Valley and Payson. Phase one is expected to be completed by early 2006. Daily Herald
This is a good move for American Fork and has been in the works for weeks. It gives us badly needed revenue as well as helping complete the network which will be an asset to the entire valley. I hope we can parlay this into bigger things.
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