Sixteen buildings now have access to the network, which promises lower communications costs. And Indianapolis is turning a profit on the deal.

"It's a really creative way to provide broadband services," said Melina Kennedy, the city's director of economic development. "With minimal impact and minimal downside to the city, we're able to provide another way for businesses to tap into this."

The network, which is made up of the fastest and largest-capacity fiber available, has the capacity to expand to 44 buildings, according to the installer, CityNet Telecommunications, Inc., based in Silver Spring, MD. CityNet will own the network for the next 20 years, collecting lease fees from users. Indianapolis, which paid nothing for installation gets 2.5 percent of annual revenue generated by the network, Kennedy said. In the first year, that should come to about $10,000.

But perhaps more important is the increased competition the new network introduces to local broadband access. Now, rather than relying on providers like SBC Communications Inc. or Time Warner Cable, companies can pay CityNet for access and then use their own equipment to "light" the network, or hire smaller competitors to handle their data delivery.

"What's special is it provides end-to-end connectivity from building to building without anybody else being involved," Jent said. "With CityNet, once you get the fiber built out, you're in charge of, 'What speed do I want to run today?' It gives you the freedom and flexibility of configuring networks. You don't have somebody making those choices for you."

Eric Olson, vice president of business development for local telecom provider Multiple Networks LLC, will be among the first to take advantage of CityNet's fiber. Thanks to the new network, his firm will be able to reach previously inaccessible broadband customers at a reasonable price.

The beauty of the CityNet model is they terminate the fibers into the building for you," Olson said. "Most dark-fiber networks create the network around the city, or in the downtown area, but won't deliver into the buildings. You have to pay for the termination of fibers into the building, running

The increased broadband capacity should allow firms to connect multiple downtown offices just as if they were in close physical proximity. While it can help firms save on broadband costs over time, companies need to be careful, because the price to lease network access is significant, Jent said.

"It's a long-term commitment. We decided we're not going to even look at this if we're not in a long-term lease in a building," Jent said. "It's a big upfront capital commitment. But the return is well worth the benefits. It's just an option for people who want to see better connectivity and more choices."

Using a proprietary robot called "SAM," for "Sewer Access Module," CityNet deploys fiber-optic cable through city sewers. SAM can lay up to 500 feet of fiber each night without digging through streets and sidewalks.

CityNet had to use traditional digging for only about 5 percent of the network. That meant little disruption at street level, and the new network won't be likely to get cut and interrupted by future construction.

"In Indianapolis, you have a lot of historic areas you don't necessarily want dug up. With this, you're able to get around urban infrastructures a lot easier," CityNet spokesman Lee Allentuck said. "That's the great thing about this strategy. Sewer pipes go into every building in a downtown area.