DPW maintains and controls right-of-ways and conduits for public utilities. They have used these right-of-ways to lay fiber optic cables for their own use without having the proper tools, knowledge and budget. As a result, fiber optic cables are connected to only a limited number of locations and are often underused or not used at all.Recommended Action:
Investigate opportunities for leasing City conduits to regional telecommunications vendors as a means of funding network connectivity and management.
Cost Savings, Revenue Enhancement
DPW, Law Department, Finance Department
Estimated Annual Impact:
While the immediate financial impact cannot be estimated, this could be a significant source of revenue and a means of obtaining a managed wide area network for the City government.
Estimated Implementation Costs:
Barriers to Implementation:
An existing ordinance limiting charges for access to and use of the City conduit system.
Assemble a negotiating team to establish objectives.
Develop City requirements/proposal, identify legal changes required and potential business partners, and negotiate agreements.
The City’s conduit system represents an untapped and potentially highly lucrative asset/revenue stream. Consideration should be given to leasing the rights-of- way to telecommunications companies such as Bell Atlantic, AT&T, and MCI in return for their laying the infrastructure for the City and in return for an annual lease fee. This would give the City its much needed fiber infrastructure and provide income as well.