A project that aims to make Colorado Springs a gig city has been plagued by delays and has triggered two lawsuits, one headed to trial next year.
Although Colorado Springs Utilities says there’s little to no risk in fronting up to $600 million in ratepayer money to install broadband fiber citywide, its business partner, Ting Fiber, Inc., has met with some financial headwinds in an industry that promises intense competition and disruption in the future.
After falling behind in 2023 and 2024 with the broadband install, Utilities says it’s now on track to meet its goals “through a combination of strategic ramp-up and expanded resources.” That included hiring three fiber installation contractors after canceling a contract with another firm, which filed a lawsuit alleging breach of contract and seeking damages of at least $61 million. (Utilities countersued.)
The new contractors have helped Utilities make up lost ground, Utilities said, noting in a statement, “[T]he pieces are in place to sustain this momentum.”
But given the size of the undertaking, and that it’s being funded by ratepayers, Nancy Henjum, a member of City Council, which doubles as the Utilities Board, wants staff to provide a briefing on the project.
“I want to better understand the benefit we’re getting,” she said recently in an interview with the Pikes Peak Bulletin. “I’ve just been asking more questions.”
Though Henjum says Utilities officials have told the board the Ting contract is “not a financial risk,” she said, “I think everything has risk, and this is a very big investment.”
Background
In mid-April 2022, Broadband Communities reported that Colorado Springs would build a citywide fiber network owned by Utilities, a project for which Ting would serve as the “first anchor tenant” via a 25-year lease, executed Dec. 17, 2021. That would enable Ting to offset the “$100 million annual construction cost and accelerate the build,” Broadband Communities reported. Construction would take six years and reach more than 200,000 addresses, it said. Then-Utilities CEO Aram Benyamin said in a release the “nonexclusive network will provide the foundation for a prosperous and smart city of the future.”
In its April 20, 2022, issue, the Colorado Springs Independent newspaper – which closed in late 2023 after a 30-year run – reported that Utilities staff never briefed the Utilities Board about the Ting deal’s financial details in a public meeting, refused to disclose the data it relied on to push forward, and refused to release key details, including the dollar amount of the lease with Ting Fibernet, a Canada-based company, chosen without a traditional bidding process. “That means ratepayers can’t know for sure if the fiber project makes sense practically or fiscally,” the Independent report said.
The report also raised questions about the project’s financial viability, whether other fiber competitors could or would participate and noted that similar projects elsewhere exceeded cost estimates and didn’t create a competitive environment for other fiber providers. Those other projects were part of the basis of Springs Utilities’ chosen model, officials said at that time.
[Editor’s note: Most of the Independent’s online archives are no longer available. Scanned images of the hardcopy version of this story may be found here.]
In essence, the City argued that Ting wouldn’t be the only fiber provider, though similar projects elsewhere adopting a similar model failed to attract additional tenants, the Independent reported.
At least seven fiber companies have obtained excavation permits from the City in recent months and years, including Metronet, Zayo, Underline, Lumen, StratusIQ, Verizon and AT&T, City records show. Those companies will not be part of Utilities’ line unless they seek an agreement like Ting has, a Utilities spokesman said. That raises the question of whether Ting can capture an adequate portion of the market to meet its financial obligations under the contract.
Utilities have maintained since the beginning that the deal is a sure thing for ratepayers, who are fronting the money that under the contract Ting and its parent company, Tucows, Inc., are obligated to repay through fees during the contract’s 25-year term.
Nearly four years later, Utilities has spent over $100 million and plans to spend $319 million more in the next four years. So far, Ting has paid the City about $3.6 million from 2023 through October this year.
But by 2030, Utilities predicts Ting will be paying nearly $21 million a year through 2048; over the contract’s 25 years, payments are forecast to total about $464 million.
Utilities says its goal is to reach up to 275,000 addresses with the fiber line, though its contractual obligation to Ting calls for reaching 150,000 by May 2028.
Cash on hand
At an Aug. 18, 2025, Utilities Board work session, Henjum asked about the fiber project, because a dashboard of Utilities metrics showed the project’s “over spend of $19.4 million” this year had contributed to the erosion of the agency’s days of cash on hand to 131 days. The target range is 151 to 160 days, making the recent figure the lowest since 2018 when cash on hand stood at 125 days, Utilities said in the dashboard report.
Overspending on the fiber project came about, staff said, because the fiber project is cash-funded, rather than supported by debt. (Other factors driving down cash on hand included “undercollection” of $17.3 million from contributions from construction/developer fees due to a slowdown in development.)
Though Utilities CEO Travas Deal said during the meeting that Ting pays Utilities $8 per month per address reached by the system, Utilities later said in response to questions that the Ting contract contains “multiple pricing mechanisms and revenue streams” and that Ting must compensate Utilities for each address delivered, “regardless of whether residents choose to subscribe” with Ting.
“Our financial risk is mitigated by a parent guaranty: If contractual obligations aren’t met, Tucows will cover 50% of any losses,” Utilities said in response to questions, noting it has no record or knowledge of how many users Ting has subscribed.
A Tucows spokesperson didn’t reveal that number either but rather said via email, “We’re pleased with the progress that Colorado Springs Utilities (CSU) has made with the network, as well as momentum we’ve had in adding customers to the network. Our investments in brand awareness and sales in Colorado Springs are clearly paying off. We’re working across the market on permitting and rollout timelines, and will continue to share updates with the Colorado Springs community as the project moves forward.”
In a March 2025 Securities and Exchange Commission filing, Tucows identified several risks to its business and the industry.
“The industries in which we operate are characterized by rapid technological change, evolving customer expectations, and increasing competition from emerging technologies,” the filing said. “Failure to anticipate and adapt to these changes could impact our ability to attract and retain customers, maintain competitive pricing, and sustain profitability.”
Specifically about Ting, the filing noted, “Fiber-optic technology currently offers unmatched speed, reliability, and scalability, but future advancements in wireless broadband, 5G, and satellite internet could reduce demand for fiber-based services, particularly in multi-family housing and underserved markets. As we expand our fiber subscribers, we must continuously invest in network performance, scalability, and infrastructure upgrades to remain competitive.”
Tucows cited the Colorado Springs deal in its SEC filing, saying the contract “obligates Ting, and its ultimate parent Tucows, Inc., to pay a per month fee for addresses passed by the network … and for certain fiber infrastructure, including co-location space.” It pegged the total cost at $593 million.
The company also reported that Ting agreed to cut its workforce by 13% in 2024 as the company shifts focus from aggressive expansion to generating revenue from existing service areas. The filing also said that Ting incurred losses of more than $240 million in 2023 and 2024 combined, and that Ting reported operating cash flow deficits of $50.4 million in 2023 and $49.9 million in 2024. As of Dec. 31, 2024, Ting carried $287.6 million in debt.
In August 2023, Ting said in a news release its high-speed fiber was available in some Colorado Springs neighborhoods for $89 a month.
Meanwhile, Tucows has shown a drop in stock price from $91.18 on Nov. 5, 2021, to $19.16 on Oct. 31, 2025.
When the Bulletin asked about Ting’s and Tucows’ financial footing, Utilities said Ting was chosen with the help of a consultant, The Broadband Group (TBG). The consultant, chosen without a traditional competitive process and paid $14.7 million so far, helped Utilities deem that Ting had “the most experience and capability to ensure a successful project,” Utilities said.
Utilities also termed Ting “well positioned to respond quickly to the demand for fiber-based broadband service,” due to its “established operation and structure that allows them to scale effectively and quickly.”
In addition, Utilities noted Ting has “consistently met their contractual payment obligations,” and noted Tucows’ promise to guarantee the contract.
When Henjum asked Utilities staff during a Nov. 18 work session about Tucows’ financial picture, staff termed the company well diversified and said Ting hasn’t been late in making payments to Utilities. (The amount Tucows would pay the City in the case of a default is redacted from the lease agreement, as are details of payment obligations by the company.)
A study conducted by the University of Pennsylvania’s Carey Law School, published in June 2022, looked at municipal fiber projects across the country that were operating from 2010 through 2014. (About 60 others did not report financial results separately from other municipal functions and were excluded from the study.)
Research revealed that most of those studied failed to generate “sufficient nominal cash flow in the short run to maintain solvency without infusions of additional cash from outside sources or debt relief.”
“In terms of actual performance,” the study notes, “none of the fifteen projects satisfied the short-run test for viability …. That means that all of the projects either required infusions of cash from outside sources or debt relief through refinancing.”
An update to the study noted that 11 of the projects were cash-flow negative but that the data indicated “some prospect on improved performance” going forward.
Catching up
The City Auditor’s Office reported in April 2024 that while Utilities budgeted $79 million in 2023 for the project, it spent only $37 million; and while network fiber lines were expected to reach 215 miles in 2023, they reached just 84 miles.
Auditors found several shortcomings in the program, but were unable to assess financial viability.
“Supporting details for information provided via some public facing communications regarding total program cost, rate impacts, cost recovery plans, and 3rd party revenue data was not provided for auditors to validate the data,” the audit report said. “Without access to data regarding the financial implications of the fiber program, we were unable to provide assurance to governance.”
Auditors also noted that progress toward a chief purpose of the line – for Utilities to provide fiber connections for its own use to increase efficiency in monitoring electric and natural gas services – was impossible to assess, because, “Detailed plans to utilize the fiber network for Utilities’ operational uses were not available.”
Utilities said in response to questions that the network will “help us manage and deliver utility services more efficiently. Paired with future smart grid capabilities, this investment will allow us to adapt quickly to changing demands and integrate smart devices for better service management.” For example, Utilities said, fiber enables the agency to shut down power lines amid high winds or extreme fire danger to reduce fire risk.
“Our new fiber network will enhance utility operations, allowing us to better serve customers and meet the needs of our thriving community,” Utilities said. “The investment in this infrastructure will support long-term operational needs and sustainable energy goals” in addition to providing citywide fiber internet services for Ting customers.
Lawsuits
The City’s fiber project has given rise to two lawsuits.
Utilities was sued in October 2024 in state court by ADB Companies LLC, based in Pacific, Missouri, over its $266 million contract to install the fiber line. ABD alleged it hired “scores” of people and more than 20 subcontractors and mobilized heavy equipment and other needs for the work.
Though Utilities “committed” to giving ADB “blanket regional permits,” Utilities “was unable to keep up with the locating demands of the project, resulting in delays,” the lawsuit said. Utilities then limited ADB to 20 permits at a time, “crippling” the company’s work schedule, the lawsuit said.
ADB alleged that Utilities delayed locating underground facilities, which is a “legal requirement” under state laws, and at one time was late to respond to 80% of utility location requests by ADB.
Eventually, Utilities cancelled the contract, causing ADB to leave “numerous construction work zones open and dangerous to the public,” the lawsuit said. ADB seeks at least $61 million in damages. Utilities argued that ADB, hired in August 2022, got off to a “rocky” start and never recovered. Besides delays, Utilities identified “serious safety issues” with ADB’s work, noting at one point ADB and its subcontractors had pulled 582 permits but closed only 155, and damaged public and private property. Utilities seeks $60 million in damages associated with ADB’s work.
The case goes to trial in April.
Another lawsuit was filed in January 2025 in U.S. District Court, Denver, by Metro Fibernet (commonly called Metronet), based in Overland Park, Kansas.
The lawsuit notes the firm is the nation’s largest privately owned, 100% fiber-to-the-premises communications provider, and that it planned to spend $70 million in Colorado Springs. Among the lawsuit’s claims:
- The City of Colorado Springs violated state and federal telecommunications laws through its efforts to block Metronet from installing fiber that would directly compete with Utilities’ and Ting’s fiber project.
- The City defamed Metronet to customers by telling them the firm wasn’t authorized to install fiber, leading one resident to threaten a Metronet crew with a gun.
- The City made false statements to Metronet’s contractors and partners saying they should seek other work because the City would no longer grant Metronet permits.
- The City blocked its work through refusing to grant excavation permits, and that the City required Metronet to bury lines only in public rights of way and not utility easements in backyards, which was allowed under Metronet’s permit from the Colorado Public Utilities Commission. The incidence of hitting City gas and electric lines in utility easements is vastly lowered by working in utility easements instead of public rights of way.
- Metronet used utility easements for nearly two years before the City demanded the company stop using those easements and then adopted “an unwritten blanket ‘stop-work’ order” for Metronet, even as Springs Utilities undertook to compete with Metronet. Those actions raise “serious and unresolved questions as to the City’s motives in blocking Metronet from constructing its network….”
In correspondence leading up to the lawsuit, the City countered that Metronet had damaged Utilities infrastructure and demanded that Metronet relocate lines installed in utility easements to public rights of way areas.
The lawsuit didn’t seek monetary damages but rather sought to force the city to allow Metronet access to easements and rights of way and stop interfering with its contractual relationships.
The City didn’t file an answer to the lawsuit and settled the case on April 7. The settlement agreement, obtained by the Bulletin through the Colorado Open Records Act, calls for Metronet to abide by rules contained in a master licensing agreement signed that same month. Among the requirements: Metronet must photograph each property in which utility easements are used, both before and after construction, and notify each homeowner whose property is being used prior to entering the property.
The City also agreed to impose the same requirements on all telecommunications utilities.
A Metronet spokesman, Scott Shapiro, said the issues raised in the lawsuit set the company back a year, but that the resolution with City officials has allowed Metronet to “accelerate our build schedule.”
“We’ve got a positive relationship with the City and believe that we all want the same thing – world-class fiber internet service for Colorado Springs residents and businesses,” he said, noting the company is nearing the halfway mark on its program.
Asked to comment, the City merely reiterated the settlement agreement’s terms.
Other projects
The ratepayer-funded fiber project comes as Utilities tackles significant capital needs to be funded with a multi-year rate increase. Its 2026 proposed budget is the largest in its history at $2.2 billion, a 23% increase over this year.
Major projects on tap or underway include the eastern wastewater expansion to accommodate eastside growth, enlarging Montgomery Reservoir in Park County, acquiring water rights, expanding Kelker substation in southeast Colorado Springs and a battery storage project.
To fund those projects and other work, City Council adopted five annual rate increases, from 2025 to 2029, that the City Auditor’s Office concluded will have this cumulative impact on rates, growing every year so that by 2029, rates will have increased by $79.79 per month (a 28.9% rate hike) for a typical residential bill; $395.67 (25%) for the typical commercial bill, and $10,618.09 (21.7%) for the typical industrial bill, based on sample bills provided by Utilities.
The briefing on the fiber project requested by Henjum has not yet been scheduled.
Update Dec. 5, 2025: City Matters did a podcast episode on the fiber project with this article’s reporter Pam Zubeck.
Comments on this story? Send them to the editor at heila@pikespeakbulletinorg.
Pam Zubeck worked for over 45 years as a journalist in Kansas, Oklahoma and Colorado. She covered local government and other topics at The Gazette for 16 years before moving to the Indy in 2009 where she contributed news and cover stories for 14 years. She’s won numerous state, regional and national awards, including the Sigma Delta Chi public service award from the Society of Professional Journalists for her 2012 story, “Misfire,” about the city’s response to the Waldo Canyon Fire.
Editor’s note 11-21-25: This story has been updated to reflect the correct spelling of StratusIQ.
