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AOT: Monetizing telecom in highway rights of way unlikely to cover costs, study finds
Summary
Agency of Transportation staff told a legislative committee that gaps in telecom mapping, legal limits and likely administrative costs make monetizing telecom use of state highway rights of way an uncertain and probably inefficient revenue source.
Jeremy Reed, chief engineer for the Agency of Transportation, told the House Transportation Committee on Jan. 8 that a 2024-mandated study of telecommunications in state highway rights of way found significant data, legal and administrative barriers to reliably raising revenue.
The study, Reed said, focused on telecommunications assets in the right of way and compared two common approaches used nationally: barter arrangements that secure infrastructure improvements, and direct revenue-generation schemes such as leases or per-foot fees. "One of the common themes, though, is it's unclear with the second approach whether or not the revenue generated actually offsets the cost it takes to administer the program," Reed said.
Why it matters: state transportation agencies are seeking new revenue streams amid tight budgets. Reed and the consultant team examined statewide data sources — including 2024 broadband-status, fiber-status and cable-route filings — and interviewed officials in 10 states, but found communications-infrastructure…
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