Revenue Opportunities from MDOT Fiber Infrastructure and Other Utility Types

Details

• Creators:
  Tester, Iain ; Kulaksiz, Tunc
• Corporate Creators:
  KPMG Consulting
• Corporate Contributors:
  Michigan. Department of Transportation ; United States. Department of Transportation. Federal Highway Administration
• Subject/TRT Terms:
  • Fiber optics
  • Public private partnerships
  • Public utilities
  • Revenues
  • Right of way (Land)
  • Infrastructure
  • Intelligent transportation systems
  • Telecommunications
  • Transportation corridors
  • Connectivity
  More +
• Publication/ Report Number:
  SPR-1773
• Resource Type:
  Tech Report
• Geographical Coverage:
  United States
• Edition:
  Final Report, 5/27/2025 - 5/25/2026
• Corporate Publisher:
  Michigan. Department of Transportation
• Description:
  This study evaluates potential non‑vehicle‑related revenue opportunities associated with Michigan Department of Transportation (MDOT) infrastructure assets within highway right‑of‑way (ROW), with particular focus on fiber‑based commercialization. The research evaluates a range of revenue concepts for alignment with MDOT's financial, operational, and connectivity objectives. The study employed a two‑phase approach. First, a qualitative literature review and peer agency assessment examined a range of alternative revenue mechanisms, including solar photovoltaic installations, electric vehicle (EV) charging, Intelligent Transportation Systems (ITS) data, air rights leasing, telecommunication tower leasing, right‑of‑way occupancy compensation, and fiber‑based infrastructure. Based on alignment with MDOT objectives and implementation feasibility, the analysis advanced fiber commercialization-specifically the leasing of existing fiber and conduit assets and the development of new middle‑mile fiber infrastructure-for more focused evaluation. Second, a planning‑level commercialization assessment was conducted to estimate the indicative scale of market opportunity across selected corridors using assumptions related to demand, competition, and cost. Results indicate that both leasing of existing assets and new middle‑mile fiber development demonstrate meaningful but distinct commercial potential. New middle‑mile deployment exhibits higher long‑term indicative opportunity due to broader corridor coverage and access to a larger addressable market, while leasing existing assets offers more limited but near‑term value opportunities. Results are presented as illustrative ranges based on conservative assumptions and are not intended to represent investment‑grade forecasts. The study concludes that fiber commercialization represents a viable opportunity for MDOT. The report outlines implementation considerations-including market validation, governance and procurement structuring, and asset inventory development-to support informed decision‑making regarding whether, how, and when fiber commercialization strategies may be pursued.
• Format:
  PDF
• Funding:
  2024-0242
• Download URL:
  https://rosap.ntl.bts.gov/view/dot/93560/dot_93560_DS1.pdf
• File Type:
  [PDF - 2.35 MB]
• Collection(s):
  US Transportation Collection
• Main Document Checksum:
  urn:sha-512:320a455c810f820d74dcdc26e225692739aab812371788f26ce2ec31d3ae7b3f7e39b5c85ea56cc44905c2dfdc208b0f42706e75e9a34dcb14664b019bc7aff2