Provo officials announced Friday that two new retail-service providers will operate the city's fiber-based telecommunications infrastructure - iProvo.

Mayor Lewis Billings said Utah-based Veracity and MSTAR will take over service duties from HomeNet, the initial iProvo provider that recently announced it would be pulling out of the city-run operation.

The two telecommunications companies will divvy up the existing HomeNet customer base and will both offer the same triple-play services - phone, cable and high-speed Internet - HomeNet provided.

"This is a broadband day for Provo," Billings said. "This is not an event where we're trying to spin something. . . . It is a major announcement, in my mind, one that's full of positives."

Critics have questioned iProvo's viability with the impending departure of HomeNet and the surfacing of reports showing the system is low on subscribers. But city and iProvo leaders say the addition of the new retailers indicates the heavy-duty project is on course.

The iProvo infrastructure is more than 50 percent completed and provides services to roughly 2,000 subscribers in parts of Provo. The project is slated to be available citywide by July 2006.

MSTAR CEO John Hansen said iProvo will continue to be successful.

"People will sign up for those services," he said. "It's what people want."

Once they take over, MSTAR and Veracity will offer 10-megabit-speed Internet for $40 per month, unlimited local and long distance calling in the United States and Canada for $30 per month, or the entire triple-play package of phone, cable and Internet for $100 per month.

Kevin Garlick of iProvo said the transition will be made before Aug. 1, and will be made as smoothly as possible. Hansen and Veracity CEO Drew Peterson said any work the system requires for the transition will be done evenings and weekends to reduce hiccups for customers.

Subscribers will receive a letter in the mail within the next week informing them of the change, as well as what provider they will be using. While Veracity and MSTAR are dividing the customer base for now, Garlick said subscribers will soon be able to choose which provider they prefer.

"We're making sure it's a win-win for all," Peterson said.

thollingshead@sltrib.com