Fees established this week for telecommunication firms to use the city's rights of way are based simply on the value of those rights of way and are reasonable, say city officials.
Orem set the fees following extensive research and discussion based on the Telecommunications Act of 1996 passed by Congress earlier this year.It will now cost a firm $2,500 for a yearly license or 50 cents per foot of right-of-way use.
Franchisers will pay the customary 5.36 percent of gross revenue fee charged to those who sell their services in Orem.
Assistant City Manager Jim Reams said the firms that have contacted the city thus far for franchises were not concerned over the fee structure.
"It's a minuscule cost to these national and regional firms," said City Manager Michael Dyal.
Reams said the fees are based on what the city calculates it costs in staff time and restoration efforts when a right of way is used.
Reams anticipates only a handful of firms will need to come through Orem or set up telecommunications franchises within the city limits. Those who do will sell their services to others and effectively expand the right-of-way use without further disruption.
Applications from Electric Lightwave and NextLink were approved by the council Tuesday.