Phoenix council adopts Chapter 5D to license fiber in city right-of-way with new contractor disclosures

Phoenix — The Phoenix City Council on March 26 adopted a new city code chapter titled “Network Infrastructure Services” (Chapter 5D) to create a licensing framework for fiber-optic internet providers installing equipment in the city right-of-way.

The ordinance, identified as G-7,343, passed unanimously. City staff said the code is intended to allow additional internet service providers to build fiber-to-home networks while protecting Phoenix’s streets and requiring clearer contractor oversight.

City leaders said the measure matters because residents could gain more high-speed options and the city will have stronger enforcement tools if construction harms infrastructure or public safety. “If this proposed amendment goes forward, then the residents could have a choice for other internet service providers,” Deputy City Manager Alan Stevenson said during the presentation.

Staff presentation and key provisions

Deputy City Manager Alan Stevenson introduced the item and said the code mirrors existing licensing language for utilities and cable TV in the right-of-way and establishes rules specific to fiber. City Engineer Eric Froeburg explained the fee options staff proposed: either a 3% fee on direct gross revenue for vertically integrated providers, or 6% for firms that build wholesale fiber but do not themselves retail service. Staff also proposed an annual minimum fee of $6 per home passed until the percentage fee…