Lehi, Utah and its partner Strata Networks say they’ve completed construction of Lehi Fiber, the city-owned, open access fiber network that’s dramatically reshaped broadband affordability and competition in the city of 80,000.
When last we checked in with the folks in Lehi back in 2022, they had just broken ground on the new network after a feasibility study by Magellan found widespread local frustration with the lack of affordable local next-generation broadband access.
Three years later, the city says they’ve completed construction of the network, which is owned by the city but managed by Strata.
Lehi Fiber Administrative Services Manager Shaye Ruitenbeek tells ILSR that they’re pleased by the community response so far.
Residents Now Have Choice of Five ISPs
“The Lehi Fiber Network has now passed approximately 23,000 locations, and we will continue expanding as the city grows,” Ruitenbeek said. “Currently, the network supports about 6,400 subscriptions, which represents an approximate 28 percent take rate.”
Like so many U.S. communities, Lehi was previously trapped in a monopoly/duopoly (depending on the neighborhood) consisting of Comcast (Xfinity) and Quantum Fiber (previously Centurylink). Ruitenbeek notes that the completion of the fiber network has not only introduced a new option, it’s forced local incumbent monopolies to try and compete.
“It's truly been a team effort, and Strata has been a great partner,” Ruitenbeek told ILSR. “We've also had consistent support from our Legislative body.”
After hiring Magellan to conduct a feasibility study, the city in 2020 approved financing the network with a bond it hopes will be fully paid off by broadband subscriber revenues.
As an open access network, Lehi Fiber allows multiple providers to come in and compete on the shared, community-owned infrastructure. Global studies have consistently shown that this open access model results in more competition (via reduced cost of market entry), faster speeds, better reliability, and lower broadband prices.
“We have five internet service providers using the city’s open access network: XMission, Sumo, CentraCom, Intellipop, and Beehive Broadband,” Ruitenbeek said. “Strata Networks is our long-term partner and continues to construct fiber for new growth areas, as well as operate and maintain the network.”
Locals have the options of multiple tiers of service across the five providers, including symmetrical 250 megabit per second (Mbps) service for $65 a month; symmetrical 1 gigabit per second (Gbps) service for between $77 and $80 a month; symmetrical 2 Gbps service for around $100 a month; and symmetrical 10 Gbps access for between $200 and $227.
City officials say that while fiber has been deployed to every city location who wants it, some developments and HOAs have chosen not to sign up for service (see our recent reporting on the kinds of deals private monopolies strike with landlords to deter competition).
Revenues Stay Local
As we detailed back in 2022, Lehi had the option to partner with UTOPIA Fiber, a twenty-one city community broadband coalition, but chose to go it alone.
“The bond payment and financial model are based on a specific take rate,” Ruitenbeek said at the time. “In both models, the risk of not meeting the take rate and having to come up with additional funds to make the bond payment is the City’s responsibility. However, revenues above the take rate in the UTOPIA model go back to UTOPIA, but revenues above the take rate in the Lehi model will stay within Lehi.”
When asked about why they’ve embraced community-owned broadband, Lehi city officials will routinely bring up electrification and the city’s 1925 decision to operate its own power company, the parallels of which are reverberating nearly a century later.
Header image of Lehi Fiber open house event courtesy of City of Lehi Facebook page
Inline image of ONT inside a home courtesy of City of Lehi Facebook page
Inline image of Lehi Fiber city availability notice courtesy of Lehi City Facebook page
