A Colorado Internet company that provides data, voice and video service to thousands of subscribers is poised to take over Utah's Mstar.
Prime Time Communications LLC is also in talks with the Utah Telecommunication Open Infrastructure Agency, whose fiber-optic network it plans to tap to provide customers with lightning-fast Internet and up to 200 video channels.
The deal could be wrapped up by the end of the month, said Mstar marketing director Haley Swenson. Financial aspects of the plan have been kept confidential, as both companies involved are privately held.
Prime Time hopes to keep prices low while improving video technology and customer service to Mstar's 4,500-strong customer base, said Prime Time president and CEO Mark Wentzlaff.
The Colorado company is also looking forward to a UTOPIA partnership.
"They've already got a network that passes thousands and thousands of potential subscribers," Wenztlaff said. "It's a good relationship because they have a network the protocol of which we know how to operate within — and they need strong service provider."
Orem-based Mstar employs about 25 people, all of whom are expected to keep their jobs under the takeover, Swenson said.
Prime Time's entrance into the Utah market could add even more technical jobs to Mstar, which may hold onto its brand-name, Wentzlaff said.
"We're very, very excited about moving into this marketplace," he said. "It's a significant part of growth projections."
Mstar will keep its customers updated through e-mails, telephone calls and notes on billing statements, Swenson said.
UTOPIA'S other service providers are Fibernet, FuzeCore, Nuvont, Veracity and XMission.
Beyond adding new providers, UTOPIA is looking to push growth by way of federal stimulus money. Executive director Todd Marriott has been Washington, D.C., this week vying for at least a portion of the $7 billion set aside for telecom infrastructure, said UTOPIA spokesman Hugh Matheson.
UTOPIA, the nation's largest municipal fiber-optic project, could fare well because it meets several criteria, including shovel-ready initiatives, high-value local impact and municipal ownership, Matheson said.
"It's kind of like the broadband piece of the stimulus bill was really written for UTOPIA," he said. "On the merits, we have pretty good chances."
A roadblock for UTOPIA expansion could be a bill proposed by Sen. Curt Bramble, R-Provo, that would disallow the use of tax-increment funding for telecommunications projects.
Drafted in response to a Centerville City Council proposal to speed up UTOPIA deployment using tax-increment funds, SB205 has passed in the state Senate and is being considered by the House.
Using tax-increment funds to help UTOPIA would be like maxing out one credit card just to borrow on another, Curtis said.
E-MAIL: rpalmer@desnews.com