How One City Delivers Broadband to Homes and Businesses at No Cost to Municipality

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Chris Teale By Chris Teale,
Managing Editor, Route Fifty
 

Connecting state and local government leaders

By Chris Teale

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The partnership gives SiFi Networks right-of-way access to install fiber for its open access network in the Texas town—and even pays the city a licensing fee.

The Odessa, Texas, City Council voted to allow the installation of infrastructure for citywide broadband internet under its streets by SiFi Networks in a deal worth more than $100 million.

Under the terms of the 30-year contract elected officials agreed to, SiFi has access to all public rights-of-way to install, maintain and operate the fiber optic infrastructure necessary for an open access network. SiFi will lay fiber along city streets passing every home and business, according to its website.

The process of building out the broadband infrastructure is expected to take between three and five years, after which SiFi would sell access to the network to retail internet providers. 

SiFi will be required to pay the city a license fee of either $8,000 or $2.99 per connected premises each quarter, whichever is greater. The company has agreed to prioritize delivery to  low-income and under connected areas.

The city will not be paying for any infrastructure that is installed, and SiFi will be required to maintain a bond through the construction process to ensure that all rights-of-way are restored properly.

During a work session to discuss the agreement, Shawn Parker, SiFi’s vice president of government affairs and business development, said Arlington is the only other city in Texas to have open access to its right-of-way for broadband deployment through SiFi. He said the installation would increase competition and improve internet access for residents.

SiFi operates its FiberCities initiative in nine states, which it said are the “backbone for economic development” and help close the digital divide. The company said its open access network, which allows multiple carriers to connect to it, broadens competition and removes “monopolistic behavior in the industry.”

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