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CHAPTER 3
Communication and Utility Services
Communication services are those that relate to public telephones, administration tele-
phones, wireless, internet, antennas, and fiber leases. The agreements can cover construction
and/or installation, operations, or management, or can be concession agreements related to
business ventures that rely on these products and services. Utilities for use on-airport are typi-
cally not governed by a contract; however, easements for utility pipes, conduits, lines, and poles
are sometimes granted. The critical issues associated with these types of contracts are discussed
below.
3.1 Critical Issues--Fiber, Cable, and Internet
Airports often enter into contracts with tenants or other users that result in a sharing of infra-
structure or services. As it relates to communications or utilities, these contracts may pertain to the
sharing of fiber already run through an airport building, internet access that an airport can legally
share with or sell to others, wireless systems and or distributed antennae systems, telephone ser-
vice, or utility easements. Critical issues include the following:
· Rate methodology for recovery of costs
· Limits of liability
· Rights regarding resale
· Firewall and virus protection
3.1.1 Rate Methodology for Recovery of Costs
An airport may choose to lease all or part of its fiber network to a user. In doing so, it is
important to establish a rate proportionate to the amount of fiber leased (e.g., a rate per linear
foot of fiber).
See CRP-CD-81 (enclosed herein), Appendix to Chapter 3, Communication and Utility
Services, for an excerpt from the PIT agreement providing examples of linear rates.
3.1.2 Limits of Liability
In allowing a user access to the airport's infrastructure, it is critical that sponsors protect them-
selves from claims of liability that pertain to elements of the service they cannot influence.
See CRP-CD-81 (enclosed herein), Appendix to Chapter 3, Communication and Utility
Services, for an excerpt from the PIT fiber lease agreement which provides that the Authority
shall not be liable for damages arising out of or relating to the agreement.
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