fiber_hut_city.jpg

A fiber hut similar to ones Google Fiber plans to install in the Portland area.

(City of Portland image)

The Portland City Council gave unanimous approval Wednesday to a lease agreement for "fiber huts" to help run the high-speed Internet service Google Fiber is contemplating in Portland and five nearby suburbs.

Wednesday's vote is an incremental step as Google evaluates whether to build in Portland, but the company signaled it was an important milestone, making it a key component of an initial "checklist" the company asked cities to complete.

Google Fiber raised the possibility of serving Portland in February, holding out the possibility of bringing its own cable TV service along with "gigabit" Internet connections at speeds roughly 100 times faster than standard connections today. The company is also contemplating serving Gresham, Lake Oswego, Tigard, Beaverton and Hillsboro. It says it will make a decision on serving the region sometime later this year.

The fiber huts are 12x28x9-foot equipment sheds that serve an intermediary role in Google's network, a hub for thousands of fibers passing from the company's main fiber lines to smaller utility cabinets that will distribute Internet traffic to and from individual homes.

Google wants to place one hut on public property for every 20,000 Portland homes it serves, which the city estimates will work out to about 15 across the city. (Lake Oswego, which approved a fiber lease agreement Tuesday, expects two fiber huts.)

The council approved a lease framework for the company, calling on Google Fiber to pay $3 annually per square foot, with rates rising 3 percent annually. At 1,400 square feet per site, that works out to an annual total of roughly $63,000.

Google hasn't selected fiber hut sites in Portland yet, but the city has identified dozens of sites that might be suitable.

That list that includes fire stations, city offices and other public property, but the city says Google favors locations that require a low level of permitting and zoning review, which narrows the possibilities to 24 locations – primarily in north and northeast Portland.

The next big step in the Google Fiber approval process comes next Wednesday, when the city council votes on a franchise agreement for the company.

That deal departs significantly from the city's agreement with Comcast, in that it does not require Google to serve the entire city, does not require it to pay public programming fees, or to serve local schools. Google says it will serve parts of the city that meet unspecified signup targets, which means that some parts of Portland will likely go without Google Fiber even if the company chooses to build here.

Nonetheless, city commissioners signaled last month that they're likely to support the deal. Commissioners inquired about the possibility of using Google Fiber franchise fees to subsidize a slower tier of service for low-income residents, and city staff say they will bring such a proposal before the city council sometime later this year.

There's at least one other outstanding issue: Google wants to put roughly 200 2x2x4-foot utility cabinets in parking strips along residential streets in neighborhoods throughout Portland. Some cities, including Gresham, already allow such cabinets but Portland generally does not.

The Bureau of Transportation is contemplating changing the rules, but opening the door to Google would also open the door to Verizon, AT&T, CenturyLink and Comcast – all of which have inquired about putting their own cabinets in the city. That could significantly change Portland's streetscape as the city weighs the appeal of faster Internet speeds against any aesthetic concerns.

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