Bountiful Fiber FAQ's
It’s a Bountiful City-owned fiber optic network for internet services. Bountiful has partnered with UTOPIA Fiber to build and operate the network. Subscribers will be able to choose an Internet Service Provider (ISP) and connection speed (between 250 Mbps and 10 Gbps) to meet their household needs.
Created by a group of Utah cities, the Utah Telecommunication Open Infrastructure Agency (UTOPIA) is a community-owned fiber optic network that uses the Open Access model to promote competition by giving customers the freedom to choose which telecommunication services they want. With fiber availability to over 100,000 businesses and residences in over 50 communities, UTOPIA Fiber is the largest and most successful Open Access network in the United States and enjoys the industry’s highest customer satisfaction scores. Since 2009, the agency has successfully designed, built, and operated nearly half-a-billion dollars’ worth of fiber projects throughout Utah and the West, all of which have been funded completely through subscriber revenue, at no cost to taxpayers.
Through a one-of-a-kind agreement with UTOPIA Fiber, Bountiful City will own the infrastructure and UTOPIA Fiber will build and operate the system. In the future, the City can choose to operate the system ourselves if it’s in the best interest of residents. In the meantime, Bountiful Fiber is a high-speed fiber optic network owned by residents and operated with UTOPIA Fiber’s unmatched speed, reliability, and competitive pricing.
UTOPIA Fiber has always admired Bountiful City’s ability to be self-reliant and is happy to use their experience in building fiber networks to help Bountiful City take the next step in self-reliance with a fiber network of their own!
No. 100% of the costs will be paid with subscriber fees, in the same way that water fees pay for water infrastructure or sanitation fees pay for garbage collection.
Bountiful Fiber will be paid for by subscriber revenue. Participation in Bountiful Fiber is voluntary, and subscriber revenue will cover the cost of the service.
Yes. Bountiful intends to issue approximately $42 million in bonds to pay for the construction of the fiber infrastructure. Sales tax will be pledged as security for the bonds to ensure the lowest possible interest rate, but user (subscriber) revenues will pay for the debt. A sales tax bond does not mean a sales tax increase.
Bond purchasers will give a much lower interest rate for a sales tax bond than for a subscriber revenue bond. The savings result in lower fees for customers. It’s estimated that a subscriber-backed bond would cost Bountiful Fiber customers approximately $27 million more over the life of the bonds than for debt backed by the City’s sales tax.
The City needs $47 million to construct the project, but that amount can be obtained by issuing approximately $42 million in bonds. Because of the City’s high credit rating combined with the security of municipal bonds generally, purchasers will pay a premium to purchase the bonds. Thus $42 million in debt will generate $47 million is bond proceeds to be used for construction. This is another reason that pledging sales tax as security for the bonds makes good financial sense.
No. State law allows city councils and other elected bodies to issues sales tax debt without an election. This is largely because it does not raise taxes. Other types of debt, like a general obligation bond that pledge property tax revenue and a city’s “full faith and credit” do require approval by voters.
Fiber internet is an internet connection that utilizes light and fiber-optic cables to transfer data. Fiber-optic wires are hair-thin, flexible strands of glass through which light beams can travel. The strand functions as a waveguide, or “light pipe” to transmit light between the two ends of the fiber. Fiber can handle almost an infinite amount of speed, allowing us to offer high speeds at lower costs. The incumbent telecom providers rely, at least in part, on copper wire technology, which limits their ability to provide faster speeds.
It’s the fastest internet on the planet – Residential lines enjoy speeds of up to 10 Gbps, while business lines can reach up to 100 Gbps.
Consistent, symmetrical speeds – Symmetrical speeds mean that when you sign up for a 250 Mbps connection, you’ll get 250 Mbps upload and download, which is increasingly important in our cloud-computing, telecommuting, online world.
Fiber is future proof – Fiber optics can handle immense amounts of data, which means it can power applications we haven’t even thought of yet.
Fiber is the future of internet connection, and having a city-wide fiber network future proofs our city for growth! Having access to high-speed fiber connections encourages growth in our community and prepares us for success no matter the changes in technology.
Prices will vary depending on the connection speed and ISP selected by the customer, but we anticipate monthly residential pricing in the following ranges:
250 Mbps: $70 – $78
1 Gbps: $80 – $90
10 Gbps: $220 – $250
There are no connection fees and no contracts. Customers participate on a month-to-month basis.
No. There are no installation fees when you get your fiber line installed.
Yes! Each home that chooses to connect to the Bountiful Fiber network will have its own dedicated fiber line. This means no more sharing your speeds with others on your street and no more slowdowns during peak usage hours!
Construction has started and the project is expected to be completed in 24 to 36 months, with individual neighborhoods able to sign up as they are completed.
If you have any questions or concerns about construction, please contact Clayton Savage at B. Jackson. You can reach him via phone at 801.520.3073 (mobile) or 801.260.0988 (office).