Tacoma committee forwards Level 3/Lumen 10-year telecommunications franchise renewal to full council

On Aug. 19, 2025, the Government Performance and Finance Committee voted to forward to the full Tacoma City Council a proposed 10-year telecommunications franchise renewal for Level 3 Communications LLC, a subsidiary of Lumen.

The renewal ordinance, a 49-page agreement presented by Jeff Leaders, division manager of cable communications and franchise services in the City of Tacoma Meeting Communications Office, would allow Level 3 to continue operating its fiber network in the city's rights-of-way provided it complies with required insurance, a performance bond or letter of credit and other conditions laid out in the draft franchise. Leaders said the renewal would be considered at first reading before the council on Aug. 26, followed by a 15-day public comment period, a final reading on Sept. 16 and publication on Sept. 19. The ordinance, if approved, would have an effective date retroactive to June 1, 2024, the date Leaders said the prior agreement expired.

The committee heard background from Leaders that Level 3 has provided telecommunications service in Tacoma since 1999 under Ordinance No. 26,465 and a 2014 renewal under Ordinance No. 28,214. Leaders told the committee the franchise renewal includes standard protections for the city, including indemnification clauses and requirements for bonds, letters of credit and insurance tied to the city's permitting and right-of-way management practices.

Committee members and a resident asked about market concentration and how many franchises operate in Tacoma. Leaders said there are "about 14" telecommunications franchises in the city and that the city does not track provider market share. "We don't keep track of that," Leaders said when asked whether the city monitors what percentage of the community uses a particular franchisee. Leaders and committee members discussed permitting and fees: Leaders said permit and pole-attachment fees apply and that fees generally cover actual costs for services such as locating and mapping, with some pole-attachment rates influenced by state rules and Tacoma Public Utilities (TPU) practices.

Leaders also described recent and anticipated ownership and market changes mentioned during the briefing: Level 3 is now maintained as a Level 3 entity under owner Lumen (formerly CenturyLink and formerly Quest), and he said AT&T had recently announced purchase of Lumen. He said other providers are entering or negotiating franchises in the region, naming EasyFiber (building from Federal Way and Lakewood) and Fat Beam Fiber (based in Coeur d'Alene, Idaho), and that a wireless company identified as SQF had submitted a franchise application. Those market developments were offered as background; the committee did not take action on market-entry issues other than forwarding the franchise renewal ordinance.

Chairperson Hines moved to forward the proposed telecommunications franchise agreement ordinance with Level 3 Communications LLC to the full City Council for consideration; Council Member Rumba seconded. The committee approved the motion by voice vote with no recorded no votes. The committee's action forwards the ordinance for formal consideration at the council readings Leaders described.

Staff recommended approval of the franchise renewal and the committee's forwarding sends the item to the council for formal readings and public comment.