Town Council last week unanimously approved an agreement with Gigapower LLC , a fiber network company, to develop a broadband network with the town's unused fiber conduits.
Gigapower describes itself on its website as a company that "builds, owns, and operates a state-of-the-art fiber network to serve Internet service providers and other businesses in select locations within the U.S.
"Gigapower builds networks that enable multiple ISPs to use it, resulting in a 'build it once' construction event that can be utilized by multiple ISPs, enabling choice and competition for residents and small businesses within your community," it states, adding:
"All communities deserve powerful digital infrastructure to support their economies. Fiber delivers the fast symmetrical speeds needed to keep residents and visitors connected to the people, events, and businesses that matter most to them.
With Gigapower, AT&T — one of the largest investors in fiber in America — and BlackRock — one of the largest investors in infrastructure — have come together through a joint venture to deliver access to super-fast, reliable, high-capacity fiber to more communities."
According to the agreement with the Delaware limited liability company, Gilbert will identify unused fiber conduits — the protective tubes that surround fiber optic cables underground from impact damage and environmental threats.
The town will then lease these conduits to Gigapower to install and maintain the broadband network.
"This is a little bit of a different type of agreement for the town; it's a little unique. We did model it off of the contracts that we utilize for our cell phone tower leasing, which are 20-year terms," said Allyna Bay , assistant to the town manager.
According to town documents, the town and Gigapower have agreed to an annual lease amount of $2.84 per linear foot of the identified fiber conduits, an amount that will be adjusted at the start of every fiscal year according to Consumer Price Index (CPI).
Approximately 140,000 linear feet of the fiber ducts have already been identified for an initial lease by Gilbert and Gigapower's engineering teams.
The town would receive over $7.9 million for the 20-year term of the initial agreement alone.
The total value to the town of the 20-year lease is yet to be determined as the town is in the process of identifying more linear foots of conduits available for use.
Per the agreement, Gigapower is also expected to work closely with the town's engineers and obtain the necessary permits and approvals, as per Gilbert's Town Code and Land Development Code, to build the network.
Since 2020, the town has been looking to partner with private fiber broadband service providers to bring high speed Internet services to its citizens.
Gilbert put out two requests for proposals in 2020 and 2022, which are open requests for companies to bid to complete projects proposed by the town.
The RFPs offered the leasing of fiber conduits as a part of the deal with the town and neither of the proposals saw any takers then.
In late 2023, Gigapower approached the town to collaborate on this and the resulting agreement was brought before the council for approval.
Once approved, Gigapower is licensed to access the identified sections of Gilbert's existing fiber network and will bear responsibility to repair and maintain the conduits they use.
The council was positive about the agreement, looking at it as a sign that Gilbert is moving forward with the times.
"We do feel that fiber is probably the tool of the future with the delivery of Internet services. It is a constantly evolving product as far as the speed and quality of fiber, but we are fairly confident in the 20 year agreement," Bay said.
Councilman Chuck Bongiovanni wanted to know if the 20-year agreement was a guaranteed lease, due to the ever-evolving nature of Internet infrastructure.
"20 years ago, I was on AOL and dial-up right, and then we went to cable and now we're going to fiber," he said. "There may be lasers doing Internet soon in 10 years. I just wanted to make sure we weren't banking on a 20-year agreement on this when we figured out the finances."
Bay assured the council that though it is a guaranteed agreement, there are exit provisions for unforeseen circumstances for both the town and Gigapower.
She added that the town can also choose to renew the lease after the 20-year period. Currently the agreement allows for three more renewal terms of five years each.
Mayor Brigette Peterson agreed that the technology is hard to keep up with.
"We've seen more change in technology in the past, probably 12 years, than we've seen in our lifetimes. And council member Bongiovanni makes a great point, we don't know what the future is going to hold and where we're going to be," she said.
Peterson gave the example of her own house and neighborhood that did not have the Internet cable when she moved in and that today, new homes are being built with the fiber infrastructure included.
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