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Navajo County approves initial middle-mile fiber pricing and IRU template to begin commercial leases
Summary
The Board approved a 20-year dark‑fiber pricing plan and an Indefeasible Right of Use (IRU) agreement template intended to let eX2 negotiate long‑term leases with internet providers and other users ahead of network completion.
Navajo County supervisors on a unanimous vote approved an initial pricing structure and an Indefeasible Right of Use agreement template for the county's middle‑mile fiber network, clearing the way for formal lease negotiations with prospective commercial users.
The decision comes as construction on the county's middle‑mile broadband project reached roughly 75% completion, county staff told the board, and after the Arizona Commerce Authority extended a grant deadline to June 30, 2026 to account for earlier permitting delays.
Grant (staff member) described construction status and introduced Kyle Hildebrand of eX Squared, the county's design, construction, maintenance and commercialization partner.
Kyle Hildebrand, co‑founder and chief revenue officer for eX Squared, said the county's commercialization team has held more than 50 detailed conversations with potential users and has proposed pricing aimed at encouraging last‑mile competition and attracting Internet service providers, wireless carriers, health‑care providers and utilities. "The pricing we recommend is on the lower side of the average market value pricing. This reduces the barriers to entry for private entities wanting to invest and considering providing services within the county," Hildebrand said.
Hildebrand described the proposed commercial terms as a 20‑year IRU for dark fiber only, with an upfront IRU fee paid at execution and an annual maintenance fee that escalates with the consumer price index. He said special circumstances will be presented to the county as they arise and that pricing may change over the asset's long lifespan.
Supervisors asked technical and fiscal questions about the IRU structure and whether the upfront fee could be amortized; Hildebrand responded that the one‑time upfront IRU payment is standard in the dark fiber market and that some asset owners occasionally offer annual payment alternatives but those are more typical of lease arrangements than IRUs.
After brief discussion, a supervisor moved approval; another seconded. The board voted aye and the motion passed.
The approved pricing and IRU template allow eX Squared to move into final negotiations with interested parties so service providers can be in position to attach last‑mile infrastructure when the county completes construction and opens commercial access.
The board did not adopt specific customer contracts at the meeting; staff said those will be negotiated and brought forward under the approved template or as individual agreements where required.
Looking ahead, county staff and eX Squared said they will continue marketing outreach and return to the board if recommended pricing or contract terms change materially.
