Franchise Agreements

In Alabama, utility and telecommunications franchise rights allow providers to use public rights-of-way to install and maintain infrastructure, governed by local franchise ordinances and state laws. These rights are essential for connecting consumers to services like fiber-optic broadband and telecommunications while ensuring cities retain control over public infrastructure.Regardless of the rights afforded through the franchise, providers, such as fiber, cable or telephone, are subject to safety, fee and construction regulations.

 Franchise Rights:

  • Rights-of-Way Access: Franchisees are generally authorized to build, operate and maintain systems in, over and under public rights-of-way, such as streets and sidewalks.
  • Non-Exclusive Agreements: Municipalities grant non-exclusive franchises, meaning multiple providers can compete for customers in the same area.
  • Franchise Fees: Providers may be required to pay fees, often calculated as a percentage of gross receipts, for the privilege of using public property.
  • Utility Infrastructure: Rules apply to a wide range of services including telephone, cable and fiber-optic networks.
  • Regulatory Authority: While cities manage local rights-of-way, the Alabama Public Service Commission regulates the service standards of many telephone utilities.

Limitations & Regulations:

  • Restricted Property Use: Franchises generally do not allow providers to use parks, recreational areas or other municipal property outside of the designated public rights-of-way.
  • Construction Safety: Providers must often comply with safety standards, including Alabama’s 811 laws for digging, and restore property after installation.
  • Pre-existing Rights: Companies that obtained statewide franchises before the 1901 Alabama Constitution may have different rights to modify, install or operate facilities, including high-speed internet.

Requirements of the Franchisee:

  • Franchisee within the City shall be located and constructed as not to:
    – Interfere with usual travel (automotive and/or pedestrian) within the public rights-of-way;
    – Interfere with the rights or reasonable convenience of property owners who adjoin such public rights-of-way;
    – Interfere with access to or use of any water or fire hydrant;
    – Obscure the vision of or interfere with the installation of any traffic control device or traffic or information sign or signal;
    – Interfere with sight distance established by any ordinance or law;
    – Obscure the light from any street light;
    – Cross any water or sewer line except at a 90° angle, except in accordance with a specific permit for such crossing issued by the City;
    – Damage irrigation, landscaping or trees owned or maintained by the City;
    – Damage any communications lines owned or maintained by the City.
  • The Franchisee shall not excavate or do other work in any public right-of-way unless the Franchisee has applied for and received a written permit entitled “Utility Land Disturbance Permit” from the City, or its designee, granting permission for such excavation or other work.
  • The Franchisee shall not open, disturb or encumber, at any one time, any more public rights-of-way than may, in the opinion of the City, be necessary to enable the Franchisee to economically install or repair its Facilities; nor shall the Franchisee permit any public right­ of-way to remain open, disturbed or encumbered for a longer period of time than shall, in the opinion of the City, be necessary.
  • Immediately upon completion of repairs or installation of any Facility, the Franchisee shall refill and compact any trench or excavation to the standards required by the City and the State of Alabama Department of Transportation’s “Standard Specifications of Roads and Structures.” Promptly, and in no less than ten (l 0) business days after the completion of repair or installation, unless otherwise approved by the City, the Franchisee shall restore or replace any pavement, sidewalk, curb, gutter, grass, landscaping material or other materials or structure damaged in the course of its work to City standards at the Franchisee’s sole expense. In the event excavation or disturbance of special sidewalk pavement areas is necessary, the Franchisee shall restore those areas to their preexisting conditions which restoration shall meet City standards. Failures within an area which has been disturbed, excavated or encumbered by the Franchisee which are discovered within six (6) months of the restoration or replacement specified herein, shall be the responsibility of the Franchisee pursuant to this provision.
  • In any case where a public right-of-way is being excavated, disturbed or encumbered by the Franchisee, the Franchisee shall take all precautions required by law, in particular, the Manual on Uniform Traffic Control Devices, or otherwise necessary or proper for the protection of the public and shall maintain adequate warning signs, barricades, signals, and other devices.
  • The Franchisee shall reasonably compensate the City for any damages, in such amounts as determined by the City, caused by trimming, cutting or removing trees or shrubbery, or shall, at its own expense, replace all trees or shrubs damaged as a result of any construction, installation, repair or maintenance of the System undertaken by the Franchisee to the satisfaction of the City.
  • Franchisee’s Telecommunications System and Facilities, including poles, lines, equipment and all appurtenances, shall be located, erected and maintained so that such Facilities shall:
    – Not endanger or interfere with the health, safety or lives of persons;
    – Not interfere with any improvements the City, County or State may deem proper to make;
    – Not interfere with the free and proper use of public streets, alleys, bridges, easements or other public ways, places or property, except to the minimum extent possible during actual construction or repair;
    – Not interfere with the rights and reasonable convenience of private property owners, except to the minimum extent possible during actual construction or repair; or
    – Not obstruct, hinder or interfere with any gas, electric, traffic control, water or telephone facilities or other utilities located within the City.
  • During the franchise Term, the Franchisee shall have sufficient full-time supervisors on staff solely to supervise construction plans and the construction practices of its subcontractors.

Forfeiture & Termination

  • In addition to all other rights and powers of the City, the City reserves the right to forfeit and terminate this franchise and all rights and privileges of the Franchisee in the event of a material or substantial breach of its terms and conditions.
  • The City shall notify the Franchisee in writing of any breach specifying the nature of the breach. The Franchisee shall have 30 days after the date of such notice to come back into compliance.

Lumos Fiber of Alabama

Ordinance Number 3266 outlines the franchise agreement for the ongoing T-Mobile Fiber installation being managed by Lumos Fiber of Alabama. City engineering staff is providing review of this work and is fully engaged with Lumos project management. While City staff will respond to issues promptly, it is most effective to report specific issues directly through Lumos Construction Support.

If you experience issues as a result of the work being done by Lumos, reports should be submitted directly to: Lumos Corporation Construction Support team by phone or email: 800.905.9017 Monday-Friday 8am-5pm EST; or constructionsupport@lumos.net. For more information regarding Lumos Construction, visit www.lumosfiber.com/builtforthefuture.