[sllug-members]: Bad UTOPIA news - let's do something about it

[warrenw at xmission.com]

Quoting Jason Edwards <jtanium at gmail.com>:

> So, then, what's the deal?  If people in a UTOPIA enabled footprint
> are being bombarded with ads, why is the adoption rate so low...?

The $202 million question.  Here are some observations:

Opposition is playing with numbers a bit.  In citing the current  
percentages, they usually play up the actuals against the originally  
proposed time frame, which was severely delayed by RUS funding and  
legal obstructions from Qwest.  If you actually consider the  
percentage of subs per residences that have it available, the numbers  
are still short, but not anywhere near as damning.

MDU support was mishandled.  A large percentage of population in these  
cities are in apartment complexes that don't have UTOPIA available at  
all.  PacketFront is trying to address this issue now.

Poor selection of early footprints.  Areas were built out largely  
based on proximity to the main framework, and often ended up being  
those areas that are less interested in these sorts of services.

Incumbent pressure.  Some UTOPIA communities have seen incumbents  
drastically discount their prices which makes even UTOPIA costs seem  
high.

As mentioned in this discussion, poor overall education.  Some people  
just don't understand what it is.  This has been a pet peeve of mine  
for a couple of years, although I freely admit that direct marketing  
makes sense for the immediate sale.

People surveyed said "Yeah, I'd love to subscribe to that kind of  
service."  But when the piper called, they realize they're stuck in a  
two year contract and aren't willing to bet their phone and TV on a  
company they never heard of, anyway.  I predict this take rate will  
greatly increase as time passes.

Fear of early adoption.  We all know there is a price to be paid for  
being new to technology.  Some people just aren't willing to gamble on  
the stability of their phone or TV and want to give it a few years  
before they take the plunge.  Again, more reason I expect take rates  
to drastically increase as time passes.

Speeds.  Another pet peeve of mine.  DynamicCity and PacketFront have  
always wanted to exploit the potential speeds of fiber.  And while  
that's all well and good, some people just have no interest whatsoever  
in 15 or 50 Mbps of internet, but just want be able to use the phone  
and internet at the same time for much less monthly cost.  UTOPIA  
currently has no solution for these users, and that is a mistake I am  
personally attempting to correct.

All the other reasons, well, we're still trying to figure those out.  
There is no model anywhere in the world UTOPIA can look to for  
guidance.  It is completely unique, and as such we're learning as we go.


Warren S. N. Woodward
Director, Broadband Services
XMission Internet
warrenw at xmission.com
(801) 303-0819
(877) XMISSION  ext 119