Arizona’s Fiber Highways

Expanding middle-mile connectivity is a priority for many states, as they seek better cellular coverage, expanded access to broadband for data center projects, and higher-speed services for previously unserved and underserved areas. In Arizona, the interstate highway system provides a ready-made on-ramp for deploying broadband to the areas, communities, and companies that need it.

“Middle-mile fiber is one of the key foundations to bring service to everybody in Arizona,” said Joe Van Galder, Broadband and Permits Program Administrator, Arizona Department of Transportation (ADOT). “There’s a lot of talk about last mile and fiber-to-the-home, but all these companies need to connect to get their fiber lit, and that’s through middle mile. The more opportunities we have to build middle mile, it’s going to serve and be very positive for the residents of the state.”

The financial foundation for the state’s current construction comes from the legislature directing $144 million in American Rescue Plan Act (ARPA) funds towards the Arizona Statewide Middle-Mile Program, guided by the Arizona Commerce Authority (ACA) and the state’s broadband office.

“We already have these established routes, and they’re typically used for transportation,” said Van Galder. “It’s an easy opportunity to get from one point to another in a pretty linear way, traversing the state by following the path of least resistance.”

While ADOT has the rights-of-way, maintaining and operating a middle mile network was outside of the scope of its primary duties.

“ADOT determined we don’t have the staffing in order to be able to maintain these assets and be able to commercialize them how we intended to,” said Van Galder. “A vendor selection process, conducted in partnership with the ACA, determined eX2 (pronounced ‘eX-squared’) was best suited to build, operate, and maintain the middle mile network.”

eX2 Technology, a Vivacity company, became the state’s single source solution to build, operate, and commercialize ADOT’s middle mile network along its highways, deploying conduit and dark fiber along I-17 from the Phoenix metro area to Flagstaff, I-19 from Tucson to Nogales, and I-40 West from Flagstaff to the California border.

“They essentially handle the maintenance arm of the fiber optics that we have in the ground,” said Van Galder. “They handle everything from splicing to repairs within our right of way and are the only ones that are able to access our right of way for our state-owned assets. They also offer the sales aspect of the middle-mile network, reaching out to customers and marketing our assets as well.”

The partnership between ADOT and eX2 was announced in April 2024, and enables broadband providers to lease dark fiber, as well as provides ADOT with the fiber to connect intelligent transportation systems technology, such as overhead message boards, traffic cameras, weather stations, and wrong-way driver detection. In the future, fiber can support emerging technologies like connected and automated vehicles.

“There’s a 90/10 revenue split with eX2,” said Van Galder. “ADOT gets the 90% and eX2 gets the 10% of the IRUs we enter into agreements with the ISPs and carriers.” The standard IRU agreement for a fiber lease is 20 years, with no restrictions, and the middle-mile infrastructure is open access, with no exclusivity for any of the assets. Publicly announced customers to date include Wecom Fiber and Cox Communications.