Boulder agrees to innovative broadband lease deal

Boulder in Colorado has developed a new agreement with ALLO Communications to bring affordable, high-speed internet across the city in which Boulder will also take a share of the wholesale revenue.

The company aims to provide high-speed internet to 80 percent of the city by 2028, with a goal of reaching 97 percent coverage by 2030.

“We’re thrilled to work with ALLO Communications to bring affordable and reliable high-speed internet to every corner of Boulder,” said City Manager Nuria Rivera-Vandermyde. “This partnership will provide significant benefits to our community, from empowering students and small businesses to supporting remote work and ensuring that no one is left behind in the digital age.”

The company will lease a portion of city-owned fibre-backbone infrastructure that was completed earlier this year. In return Boulder will receive a US$1.5 million upfront lease payment, ongoing lease revenue from success-based fees, and a share of ALLO’s wholesale revenue, which, combined, will fund future community initiatives. The city estimates the total net present value of the lease deal to be about US$9 million.

Under the agreement, ALLO will also build a 288-strand fibre micro duct within an empty city-owned conduit, which will be fully owned and operated by the city to connect government and private assets to serve other community needs.

“ALLO is delighted to have the opportunity to serve the Boulder community with world-class fibre to the premises,” said Brad Moline, ALLO Founder & CEO. “Our multi-gig offerings to residents, businesses, government, and educational environments throughout the city position Boulder for nearly anything the digital world poses.”

The service will provide a fully open internet, free from data caps, traffic prioritisation, or other restrictions that limit users’ access to content, and discounted rates will be offered to low-income households. In addition, free internet access to 25 local non-profit organisations will be provided.

In 2018, the city began working on a community broadband initiative but instead of building a fully city-owned broadband network, Boulder decided to lease this backbone to private partners, a choice driven by financial feasibility and risk reduction.

The service will be rolled out in phases, with initial installations expected to begin in late 2025.

Image: Maciej Bledowski | Dreamstime.com