Cox Communications raises concerns, asks City of Omaha to delay Google Fiber agreement

Sep 23, 2023

Mutual of Omaha tower will be Omaha's tallest building

An agreement with Google Fiber would allow the company to offer its high-speed internet service to residential and small-business customers in Omaha, but a provision in state law could limit the city's ability to generate revenue from the deal.

Lawmakers passed the Small Wireless Facilities Deployment Act in 2019 with the goal of encouraging the development of wireless communications networks across Nebraska, according to the legislation.

The act's language also prevents the City of Omaha from charging Google Fiber a gross revenue fee of 2% — an amount agreed upon by the company and the city.

"Believe me, I want to be able to say that we have the ability to be able to charge a fee," said Bernard in den Bosch, deputy city attorney.

But after reviewing the statute's language and definitions, in den Bosch concluded that statute prohibits the city from collecting a tax, fee or rate on Google Fiber's service.

"I’m pretty confident that wasn't the statute's intention," in den Bosch told Omaha City Council members during a public hearing on the Google Fiber licensing agreement Tuesday.

Approval of the agreement would allow Google Fiber to install, maintain and operate a fiber optic network in Omaha's public right of way.

Kim Rowell, a spokesperson with Cox Communications, raised concerns with the council over a franchise fee charged to Cox by the city that wouldn't be charged to Google Fiber.

Cox Communications built the first cable system in Omaha more than 40 years ago and has operated under a franchise agreement to provide cable television in Omaha.

Per its agreement, Cox provides the city a 5% franchise fee annually, which amounts to about $5 million a year, Rowell said.

"To be clear, we are here today to embrace competition," Rowell said. "If passed in its current form, this agreement will undoubtedly cause Omaha to forgo significant revenue. ... We respectfully ask that the city delay action on this item until an agreement can be made where all competitors are playing by a similar set of rules."

A change in the state law, different interpretation of the statute or a court decision could offer some flexibility in charging a revenue fee, in den Bosch said.

Council members are scheduled to vote on the license agreement during next Tuesday's meeting at 2 p.m. in the Legislative Chambers of City Hall.

The fiber network is currently in design with construction expected to begin in 2023, pending approval of the agreement. Service would become available in segments as the network is completed.

Google is currently building a data center near State Street and Blair High Road — the third Google data center in the Omaha-Council Bluffs metro area.

A team from the Midwest Archaeological Center uses ground penetrating radar and other equipment to determine if human remains are buried where detection dogs previously signaled the site of a potential burial ground for children who died while at the Genoa U.S. Indian Industrial School in the late 19th and early 20th centuries. Photographed near the site of the school, bordering the Loup River Power Canal in Genoa, Neb., on Thursday.

Cooper Driever, 10, of Plattsmouth, watches the Illinois vs. Nebraska football game at Memorial Stadium in Lincoln on Saturday. Illinois won the game 26-9.

Nebraska's Casey Thompson (11) is hit during their game on Saturday in Lincoln. Thompson was taken out of the game for an injury to his right arm after the play.

Blaine Beckmann with Seal-Rite, uses spray foam to insulate a home in Elkhorn on Wednesday.

Work continues on Heartland of America Park and Lewis & Clark Landing, with the skate ribbon visible on the bottom right, on Thursday.

Marian's Maddia Groff (3) celebrates scoring the winning run during the Class A State Softball Championship game against Gretna on Friday.

A sculpture and amphitheater of the newly renovated Gene Leahy Mall is visible through the partially demolished W. Dale Clark Library, located, 215 S 15th St, on Thursday.

Kearney's Asher Saulsbury reacts after conceding a point during his championship match against Lincoln East's Hunter Nelson at Koch Tennis Center in Omaha on Friday.

Ice coats blades of grass at Memorial Park early Tuesday morning as Omaha set a new record low of 19 degrees according to the National Weather Service.

Lincoln East's Hunter Nelson returns the ball during his championship match against Kearney Asher Saulsbury at Koch Tennis Center in Omaha on Friday.

Millard South's Grant Renken (left) tries to catch a pass while pressured by Omaha Westside's Nick Anglim (center) and Teddy Rezac during overtime in their game at Westside High School in Omaha on Thursday.

Breyan Lovejoy (left) and Kaleb Sheridan sing and drum with other members of the White Eagle Club during the Indigenous Peoples’ Day Celebration at Josyln Castle & Gardens in Omaha on Monday.

Kane Sheridan, of the White Eagle Club Dancers, dances during the Indigenous Peoples’ Day Celebration at Josyln Castle & Gardens in Omaha on Monday.

Members of the White Eagle Club Dancers perform during the Indigenous Peoples’ Day Celebration at Josyln Castle & Gardens in Omaha on Monday.

Nebraska's Trey Palmer (3) celebrates with teammates after his touchdown during their game on Friday in Piscataway.

Nebraska's Casey Thompson (11) warms up ahead of the Nebraska vs. Rutgers football game in Piscataway on Friday.

Papio South's Kenzie Dyrstad dives for the ball during their match against Skyview Idaho during the Girls Volleyball Invitational at Papillion-La Vista South High School on Friday.

Marion Burse sings along to "Lift Every Voice and Sing" at the ceremony.

Sarah Walker, Creighton University Vice President for Equity, Diversity, and Inclusion, speaks during Friday's ceremony.

Owner Angie Norman in the garden at Dahlia House, her Airbnb in Benson. "It's like you are watching a show," Norman said. "It's just full of life."

Creighton Head Coach Jim Flanery watches his team practice at Sokol Arena on Tuesday.

Creighton's Kennedy Townsend poses for a portrait at Creighton's Championship Center on Tuesday.

Creighton's Arthur Kaluma poses for a portrait at Creighton's Championship Center on Tuesday.

Nebraska's Ty Robinson (99) celebrates a sack of Indiana's Connor Bazelak (9) in the Indiana vs. Nebraska football game in Lincoln on Saturday. Nebraska won the game 35-21.

Nebraska's Nick Henrich tackles Indiana's Javon Swinton during their game at Memorial Stadium on Saturday.

Nebraska's Anthony Grant fumbles the ball which was recovered by Nebraska's Brody Belt during the second half of their game at Memorial Stadium on Saturday.

Nebraska's Luke Reimer intercepts the ball after tackling Indiana's Javon Swinton during the second half of their game at Memorial Stadium on Saturday.

Nebraska's Nick Henrich tackles Indiana's Donaven McCulley during the second half of their game at Memorial Stadium on Saturday.

Nebraska's Luke Reimer and Grant Tagge celebrate after Reimer broke up a pass to get a stop during the second half of their game at Memorial Stadium on Saturday.

Nebraska's Nick Henrich celebrates after tackling Indiana's Donaven McCulley during the second half of their game at Memorial Stadium on Saturday.

Ice coats blades of grass at Memorial Park early Tuesday morning as Omaha set a new record low of 19 degrees according to the National Weather Service.

Nebraska's Chubba Purdy (6) is brought down by Indiana's Louis Moore (20) and Cam Jones (4) in the Indiana vs. Nebraska football game in Lincoln on Saturday. Purdy fumbled the ball, and it was recovered for a touchdown by Indiana.

Nebraska's Marques Buford Jr., left, tackles Indiana's Andison Coby after he had a four-yard reception in the second quarter on Saturday.

Mila Friedman, 4, is tossed in the air and caught by her dad, Sebastian Friedman, of Lincoln, while tailgating ahead of the Indiana vs. Nebraska football game in Lincoln on Saturday.

Gretna's Cameron Bothwell (99) smiles with teammates after his game-winning field goal in the Bellevue West vs. Gretna football game at Gretna High School on Friday. Gretna won the game 40-37.

From left, triplets Morgan, Maddie and Megan Moore wait for customers at Corn Crib Coffee. The coffee shop in a former corn crib is getting a lot of traction on social media.

People hold their phones to get photos of the first plane to land at Offutt Air Force Base, a TC-135 following an 18-month runway reconstruction that cost more than $200 million on Friday, September 30, 2022.

Lt. Col. Ryan Davis brings his new son, Beckett, to see the new runway at Offutt Air Force Base on Friday.

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Jessica covers city issues for The World-Herald, including public parks, transportation, Omaha City Council and the Mayor's Office. Follow her on Twitter @Jess_Wade_OWH. Phone: 402-444-1067

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