ALLO Communications informs city it will pull out of contract to build out fiber network

ALLO Communications has notified the City of Boulder that the company will not proceed with the citywide fiber buildout outlined in the company's 2025 lease agreement. In the company's notice to the city, ALLO cited rising labor and material costs, increased competition among fiber providers, and broader shifts in the telecommunications market as reasons for the decision.

Under the 2025 agreement, ALLO leased a portion of the city's fiber-backbone infrastructure with the purpose of expanding high-speed internet access to 80% of Boulder by 2028 and 97% by 2030. ALLO has acknowledged that its decision not to proceed will result in it failing to meet its obligations under that agreement.

The city is currently reviewing its options under the terms of the agreement and is in discussions with ALLO regarding next steps, including the future of the city-owned fiber infrastructure ALLO has been leasing.

"A buildout of a citywide fiber network has been a longstanding goal for our community, and it's disappointing that we need to reset on this project," City Manager Nuria Rivera-Vandermyde said. "We'll be working to identify a new partner through a new procurement process, while also exploring our legal options in this unfortunate contract situation."

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