Proposal build for broadband venture

A proposal to offer broadband services, including television, telephone and Internet, in Brigham City is “a business experiment.”

Chuck McCown, general manager of Beehive Broadband, told the city council recently that the new venture would hinge on working out details with UTOPIA, a public/private fiber optics network funded by a consortium of 16 Utah cities.

“If it works here, we’ll go to other UTOPIA cities” such as Payson, said McCown.

Brigham City joined the Utah Telecommunication Open Infrastructure Agency, or UTOPIA, in 2009 by approving a $3.66 million bond toward construction of the fiber optic infrastructure.

Customers can hook up to the UTOPIA network for a $3,000 assessment and then choose their own service provider.

The Beehive umbrella of companies was started in 1963 by Art Brothers, who also attended the council work session.

Today, the Tooele County-based enterprise offers TV, telephone and Internet services to small communities across the state.

Beehive Broadband proposes offering a set of services that includes digital telephone at $19.95 a month, residential standard Internet at $44.95, and fiber optic cable TV at $14.95 for basic channels, $44.95 for a basic cable package and $49.95 for an expanded cable package with more than 200 channels.

To bring its service to Brigham City, Beehive will use the cable fiber run by UTOPIA.

The private-public agency presents the largest cost to bringing the service to Brigham City, McCown said. For instance, the $23 fee per customer charged by UTOPIA represents half of the cost of the $44.95 basic internet package, he said.

Mayor Dennis Fife questioned why the fee would be so pricey given that the city had contributed a sizeable amount to UTOPIA and continues to pay a monthly fee. Tim Fisher, a UTOPIA project manager, said those details are still to be worked out.

McCown said Beehive has no surcharges or caps on bandwidths on its broadband services.

“We’re one of the last of the unlimited guys,” he said. As for TV, “this is where we can define ourselves” using the company’s high-tech digital broadcasting technology. He said Beehive is one of only a few providers that offer its own IPTV, or Internet protocol TV.

Fife told McCown, “We’re excited and hope it works out.”

June 18, 2012

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