It is indisputable that Internet commerce has grown exponentially and the trend is expected to continue. State tax systems were designed for manufacturers. Revised tax systems would allow the State to more accurately track changes in economic activity and, perhaps, make taxation more equitable between Internet commerce and brick and mortar commerce. Mr. Alvarado commented that the public right of way is precious in that it connects all people to all places. He indicated that there are currently 37 companies that have a license with the City of Phoenix to access rights of way, with four additional companies in the application process.
Phoenix is the second largest hub in the country for telecommunications.
Mr. Alvarado explained that the minimum wiring standard is 24-strand fibers, which is being used by the many companies accessing the public rights of way. All permitting is approved prior to construction so trenches are not unnecessarily re-dug in the rights of way. Furthermore, additional conduit is added at the time of construction to accommodate future telecommunication needs and avoid unnecessary digging. Each conduit will accommodate four providers. The installation of fiber optic technology to accommodate high-speed data is necessary to create the infrastructure that will encourage greater competition and economic development in Arizona.