Council splits 3-2 to advance fiber network

On April 21, the West Hollywood City Council voted 3-2 to advance a public-private partnership with Plenary Broadband Infrastructure WH LLC to build and operate a citywide fiber optic network. The decision, which directs staff to negotiate an Implementation Agreement, aims to address limited broadband competition and expand high-speed internet access for residents and businesses. The city’s financial contribution is estimated at $24-28 million, with a total project cost of $45-51 million, to be completed within 16-24 months.

The initiative builds on a 2016 Fiber Network Infrastructure and Service Strategic Plan, which prioritized a robust fiber optic backbone along Santa Monica Boulevard. This existing infrastructure supports public Wi-Fi and connects city facilities like City Hall and Plummer Park. However, a 2022-2023 attempt to extend the backbone along Sunset Boulevard and other streets stalled when bids exceeded $19 million, prompting the city to seek alternative solutions.

In August 2022, the city issued a Request for Proposals (RFP) to modernize its communication infrastructure. Four companies—Plenary Americas, Spectrum Enterprise, Sonic Network, and SiFi Networks—responded. Plenary’s proposal was selected in October 2023 for its comprehensive approach, emphasizing an underground, open-access network that allows multiple internet service providers to offer services. Unlike alternatives, Plenary’s plan ensures city ownership, enhances network reliability, and minimizes aesthetic concerns by avoiding aerial cables.

A market analysis conducted under an Exclusive Negotiation Agreement with Plenary revealed significant gaps in West Hollywood’s broadband landscape. Only 28% of residential addresses had fiber access in June 2024, with AT&T providing fiber in just five neighborhoods and Spectrum relying primarily on cable. Only 34% of residents reported satisfaction with current providers, and most pay $50-99 monthly for internet, with 18% paying over $100. The analysis projected potential annual consumer savings of $720,000 to $8.64 million if the new network reduces monthly bills by $10-30 due to increased competition.

The approved plan, Option 1, includes a citywide fiber network serving all residents and businesses, alongside modernizing municipal infrastructure. It will connect city assets like parks, traffic signals, and bus shelters, and support public Wi-Fi along major corridors such as Sunset and Melrose boulevards. Benefits include free internet for low-income housing, consumer privacy protections, and revenue-sharing with the city. Plenary will handle design, construction, and operations, with the city retaining ownership and assuming full control after approximately 35 years.

Council members supporting the plan highlighted its role in fostering economic growth, digital inclusion, and future-proofing West Hollywood for Smart City applications, such as public safety and telehealth. Councilmember Lauren Meister emphasized its potential to support local institutions like Cedars-Sinai, noting, “This type of infrastructure could be helpful in the medical field.” Vice Mayor John Heilman viewed broadband as essential infrastructure, akin to sewers, and questioned Spectrum’s opposition after submitting an RFP proposal, suggesting it feared losing market dominance.

Skeptics, including Council Members John M. Erickson and Danny Hang, raised concerns about the project’s cost and timing amid economic uncertainty. Erickson doubted the 16-24-month timeline, citing past project delays, and warned of buying “outdated technology” in 30 years, referencing failed municipal networks in Burlington, Vermont, and Provo, Utah. Hang prioritized social services and infrastructure like sidewalks, questioning if the project was “ready for prime time” given inflation and potential federal funding cuts.

The project will use microtrenching, a state-mandated technique involving narrow, shallow trenches to lay cables, minimizing disruption. Phase 1 will cover most of the city, serving 3,873 addresses and 27,906 units, while Phase 2 will align with the Design District Streetscape Project to avoid redundant construction. The city has budgeted $14 million, with additional funding to come from reserves or bonds.

Staff will negotiate final terms with Plenary and return to the council for approval. The partnership positions West Hollywood to bridge the digital divide, but its success hinges on managing costs and meeting the proposed timeline.