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| Wilson & Domenici Critical of Albuquerque’s Proposed Fee for Fiber Optic Installation Through City to Four Corners |
April 27, 2000 |
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Lawmakers urge city to rethink its high fee plan for economic development project
WASHINGTON, DC - Congresswoman Heather Wilson and U.S. Senator Pete Domenici today urged the city of Albuquerque to reconsider its plan to demand more than $100,000 a year from a company that plans to bring new fiber optic lines through the city to the Four Corners area.
Earlier this week, the city of Albuquerque disclosed its intention to charge Pathnet Inc. an annual $105,721.75 licensing fee in order to utilize city rights-of-way to connect a fiber-optic cable from El Paso, through Albuquerque and the Four Corners region, to Grand Junction, Colo. The cable would ultimately connect to another line that runs to Chicago, Ill. The project will involve 2,867 feet of underground plant and 39,421.7 feet of aerial cable within city rights-of-way.
Wilson and Domenici expressed their concern in a letter to Albuquerque Mayor Jim Baca.
“The Bridge over the Digital Divide shouldn’t have a toll booth on it. I find it deeply troubling that the city has decided to make this project to bring new fiber optic lines through Albuquerque a cash cow for city programs,” said Wilson. “This decision is extremely short sighted and may result in curbing the growth of New Mexico’s burgeoning technology community. We have been working hard to prevent federal bureaucracies from charging exorbitant rates across federal land. Now the city itself is putting a road block on the information super highway.”
“We cleared a BLM fee hurdle for this project. We had the President in New Mexico last week to highlight the need for fiber optic and Internet service in rural America. Whether it’s Shiprock, Albuquerque or Alamogordo, the whole state needs more fiber optic and telecommunications access. I am unconvinced that the proposed licensing fee is necessary, but I am sure that it could jeopardize the project,” Domenici said.
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Dear Mayor Baca,
We are writing to express our deep concern with reports that the City may be making a grave mistake with respect to growth and development of New Mexico’s children, industry, and economic development. Specifically, we are concerned that the City may require exorbitant annual fees for the installation and maintenance of a 156-strand fiber-optic line through Albuquerque that will be used to connect the City to the balance of the world telecommunications network.
As you know, Pathnet, Inc. plans to connect a fiber-optic cable from El Paso, Texas through Albuquerque to Grand Junction, Colorado. That cable would ultimately connect to another that runs to Chicago, Illinois. For the Albuquerque “off ramp” segment of the total project, Pathnet is seeking permission from the City to use easements currently owned by the Public Service Company of New Mexico (PNM), where Pathnet utilizes PNM’s facilities to access downtown Albuquerque. This project will involve 2,867 feet of underground plant and 39,421.7 feet of aerial cable within City rights-of-way, where PNM is already paying the City an annual franchise fee.
The advantages of such a fiber-optic network traversing New Mexico are countless. Broadband, high-speed Internet access will enrich New Mexico’s already growing technology community. Fiber-based access to the Internet will provide New Mexico’s children the same opportunities for education and professional development that other states enjoy. Similarly, shortsighted predatory pricing schemes will only serve as an impediment for the continued expansion of broadband technologies in New Mexico and may deter future investments in the state. Businesses with the option of locating in Albuquerque or other metropolitan areas may make their decisions based on the fair treatment they will receive by the local governments they would be required to work with.
We understand the City`s requirement to collect compensation for the use of City facilities. The City of Farmington, when dealing with Pathnet`s fiber-optic cable, required a flat fee $100 per pole used per year, rather than a License Agreement. This fee was based on the cost to the City of Farmington. In that case, the City owns the structures being used, while in Albuquerque, PNM owns the structures. We hope the City is basing its pricing structure on the actual cost to the City, rather than using this investment in the state`s future as a new source of revenue.
We understand that Pathnet plans to pay under protest a fee of $105,721.75 to the City in order to receive a license to begin construction. We further understand that the City has reserved the right to adjust the fee structure. It is our hope that you will closely examine the full impact that fiber-optic connectivity will have on the people of Albuquerque and New Mexico, and the potential impact that such a precedent may have on their future.
signed: U.S. Senator Pete Domenici
signed: U.S. Congresswoman Heather Wilson
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