In January, the city's fiber-optic network lost 120 subscribers, bringing the total of those dropping off the 4-year-old system to 1,501.
While 149 people signed up for the service last month - netting 29 when considering the cancellations - the low sign-up rate worries officials. Currently, 10,363 subscribers are on the system; the city hopes at least 18,000 will eventually sign up.
Mayor Lewis Billings said the city is talking with iProvo's providers about the situation, but he downplays the "churn" rate.
"We are a college town," Billing said. "We have a high turnover." He said the city is compiling a study of how its churn rate compares with other systems.
While the records show increases in the number of folks who get one or two telecommunications services from the network, 328 fewer people bought all three - telephone, television and Internet - over the past 12 months.
Municipal Council Vice Chairman George Stewart presented the numbers today. The churn rate wasn't his only concern. He said the system is not making enough money to cover its debt payment.
This is despite the network posting a $1.123 million profit in its operating revenue. Stewart's report listed the deficit as $251,415, but that was after including a $600,000 subsidy from the city. Without the subsidy, the deficit is more than $800,000, Stewart pointed out.
The city, he maintains, cannot continue to subsidize iProvo, especially if the economy is starting to slow down.
"We are facing a slower economy, and that means slower revenues," Stewart said. "We need something beside general revenue funds."
The city retained consultants to examine the city's business model. Billings said that study is ongoing, and the city is talking with the providers about improving service and marketing - as well as seeking additional companies to provide service on the network.
The system is also the subject of a state audit looking into whether providers have been in arrears to the city. Debbie Empey, state audit director, said her office is still working on the audit.
