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Council approves two 20-year fiber franchise agreements with Farmers Telecom and MCI
Summary
Birmingham granted 20-year, renewable franchise agreements to Farmers Telecommunications Corporation and MCI Communications Services LLC to install and operate fiber infrastructure in city rights-of-way; both agreements include a 5% gross-revenue franchise fee and were recommended by the Transportation & Infrastructure chair.
The Birmingham City Council approved two separate 20-year franchise agreements Dec. 2 allowing Farmers Telecommunications Corporation and MCI Communications Services LLC to install and operate fiber-based telecommunications systems in city right-of-way.
Each agreement authorizes an initial 20-year term with options to renew for two successive five-year terms. Both agreements will require the franchisee to pay a franchise fee equal to 5% of gross revenue, and the city authorized the mayor to execute the agreements.
Council members said the franchise agreements use standard contract language and were recommended by the chair of the Transportation & Infrastructure committee. No substantive amendments were raised during the floor discussion; both items were moved, seconded and approved by council voice or roll call.
City staff characterized the awards as opportunities to expand middle-mile fiber infrastructure to support broadband service in Birmingham. The items were routine renewals of rights in the public way and include standard reporting and compliance obligations under the franchise terms.
