If I Had a Vote

After all of my research and pondering and digging, I'm thoroughly convinced that this iProvo sale is slanted in Broadweave's favor at every turn. If I were on Provo's city council and I had a vote on May 27 I would vote no on this deal. I could be convinced to move to a yes vote, but there would have to be changes to the deal on each of the following points:

1. $500,000.00 Payment in aid of customer transition. No. There is no reason for Provo to pay for customers to be transitioned. There is no reason for Provo to pay someone to take over this network. This payment should be $0.
2. UTOPIA Right of First Refusal. The agreement says that if UTOPIA exercises the right to buy the video headend, Broadweave gets the proceeds. This is not acceptable. Provo should get the proceeds and should use it to pay down the bonds.
3. Improvements to the Network. Under the current agreement Provo can reclaim the network in the event of a default, but must pay for any improvements to the network. This is not acceptable. Provo should be able to claim the network and all network fixtures, even if they were added after the purchase of the network. This is part of Broadweave's "skin in the game." They don't want to put up cash so they can spend money on "upgrading the network." I think their "upgrades" should be put at risk. That will be the skin that's still in the game when the $6M surety expires in 2 years.
4. 20 Year Payback. Broadweave is buying a fiber optic network and all the fixings, and gets to pay it off over 20 years. The argument is that the fiber optic technology will still be state of the art even in 20 years. While I agree that the fiber lines in the ground and on the poles will probably still have the same value in 20 years, there is no way that any of the fixtures that connect to the fiber, the servers, the set top boxes, the VoIP clients, or even the NOC will have much value in 20 years. Can you imagine still paying today on a server that was built in the late 80s? At the least, speed up the payment. Ideally value should be applied to different classes of equipment and a reasonable payment schedule should be worked out for each class such that in 10 years the city doesn't end up with debt on the books secured by equipment with no value. This isn't such a big concern if Provo gets to claim network improvements as per item #3.
   
5. Open Network. I'm not 100% on this one, but I would highly prefer some provision that would allow for other providers on the network, similar to the regulations that local telephone networks operate under. I think the open network idea still has merit, and it doesn't have to conflict with Broadweave being a retail service provider.
6. Board Representation. This deal represents significant exposure for Provo City. The city should have a voting representative on Broadweave's corporate board. Broadweave the parent company, not Broadweave of Provo.
   

I think I may be missing one or two items that I was thinking about last night, so I may add to the list soon.