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For Immediate Release: 09/18/23
Contact: Office of Media Relations and Communications | (518) 471-5300 | public.info@thruway.ny.gov

THRUWAY AUTHORITY BOARD OF DIRECTORS APPROVES AGREEMENTS WITH TWO ENTITIES FOR USE OF THRUWAY AUTHORITY’S FIBER OPTIC SYSTEM

New Agreements to Create More Than $1 Million in New Revenue Each Year

Thruway’s Fiber Optic System Consists of Approximately 550 Miles of Duct and Fiber Optic Cables, and Creates Additional Revenue Source

The New York State Thruway Authority’s Board of Directors today unanimously approved agreements with two telecommunications providers for use of the Thruway Authority’s fiber optic system. The new agreements create more than $1 million in new revenue each year and are in addition to the more than $10 million already received annually through fiber optic system network fees.

“The Thruway Authority is committed to seeking additional revenue sources such as fiber lease, grants and other permit and usage fee to ensure tolls remain at the lowest level possible for our customers,” Thruway Authority Acting Executive Director Frank G. Hoare said. “While approximately 90 percent of all Thruway revenue comes from tolls, revenue streams are reinvested back into the maintenance and operations of the Thruway system.”

The Thruway Authority’s fiber optic system is made up of 550 miles of duct and fiber optic cables along the Thruway, as well as regeneration facilities and hookup locations.  It serves as a backbone for New York’s expansive network of fiber technologies delivering telecommunications and internet services to homes and businesses across the state.

All use of the Thruway Authority’s fiber network system will be in accordance with Public Authorities Law ยง 2897 (6) (f). The Public Authorities Law was amended in 2020 allowing the Thruway Authority to negotiate directly with service providers to use the Authority’s fiber optic system.

  • AT&T: Approved for a 30-year Indefeasible Right of Use (IRU) resulting in a revenue of $13,789,817.36.
  • NYS ITS: Approved for a 10-year IRU resulting in a revenue of $5,185,803.19.

In 2022, fiber network usage fees accounted for more than $10.3 million in revenue, or approximately one percent of the Thruway’s overall budget.

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