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Lehi fiber network tops 7,000 subscribers but lags break-even goal

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alpinehighlandtribune.com

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Lehi fiber network tops 7,000 subscribers but lags break-even goal
Photo via alpinehighlandtribune.com
Lehi's city-owned fiber network has surpassed 7,000 subscribers in its first year of operation. However, the network still requires approximately 3,500 more subscribers to reach the 38% take rate necessary to cover bond obligations without using city reserves.

Key takeaways

  • Lehi's fiber network reached 7,000 subscribers and a 30% take rate one year after completion.
  • The network needs approximately 10,500 total subscribers to reach a 38% take rate and cover bond obligations.
  • The network was completed in August 2025 through a partnership with Strata Networks.
  • Lehi City plans to present a financial and operational update to the City Council in October.

Lehi's city-owned fiber network has surpassed 7,000 subscribers in its first year of operation, according to a September 18 report. While the network has reached a 30% take rate across approximately 23,000 homes and businesses, it still needs about 3,500 more subscribers to reach the break-even goal required to cover bond obligations without using city reserves.

The network, which was completed in August 2025, has seen its take rate increase from 23% to 24% earlier in the rollout. To meet the 38% take rate required for financial sustainability, the system needs approximately 10,500 total subscribers. This goal is tied to a bond approved by the City Council in 2020, which a feasibility study by Magellan Advisors estimated at nearly $65 million, with $50.3 million allocated for construction. According to a December 2021 city press release, the bond is backed by the city and is intended to be repaid solely through subscriber revenues.

Lehi fiber manager Shaye Ruitenbeek stated that subscriber growth is being tracked as anticipated. Ruitenbeek noted that as Lehi continues to grow, the number of locations the network passes increases while the bond amount remains fixed. Ruitenbeek also mentioned that competition among the five internet service providers using the network—CentraCom, Beehive Broadband, Intellipop, Sumo Fiber, and XMission—helps put downward pressure on pricing. The network currently has a six-month Net Promoter Score of approximately 43, which Ruitenbeek said reflects high customer satisfaction.

The city owns the physical infrastructure and operates the network through a public-private partnership with Strata Networks, which maintains the 400-plus miles of fiber. New developments are typically integrated into the network as Lehi grows, provided they do not have exclusive agreements with other providers. The city plans to present an updated financial and operational overview regarding the network's progress toward long-term sustainability during an October work session, though a specific date has not been announced.

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CityLehi
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