City managers in Provo, Utah, have hired consultants to look into possible changes to the city's iProvo municipal fiber-to-the-home network, which was one of the first projects of its kind in the nation and helped spread the concept of FTTH networks operated on a wholesale basis by municipalities.
Despite its innovations, iProvo has experience very high churn, with an average of 120 customers per month canceling services for the first 11 months of this year. The city pays all the installation and connection costs associated with the network, and resells bandwidth to carriers providing broadband service to end users. It seems a combination of high costs, discounts by telco and cable competitors and wholesale billing and collections problems have hurt the project.
- read this report in Telephony