Chapel Hill and AT&T have signed an agreement to open the way for AT&T (NYSE: T) to build an ultrafast Internet network. The AT&T plan is part of the North Carolina Next Generation Network initiative.

“This is excellent news for Chapel Hill residents and businesses,” said Mayor Mark Kleinschmidt in a statement. “The agreement with AT&T will contribute to our efforts to offer a new level of participation in digital democracy and civic engagement, expand opportunities for education and research, and drive job creation and economic growth.”

AT&T plans to deploy a fiber-optic based network to increase the capabilities and speed of its AT&T u-verse Internet and entertainment service.

Raleigh signed a similar agreement last week. Durham and Winston-Salem also have signed on to AT&T proposals.

Cary and AT&T announced the ratification of the deal Friday morning.

A spokesperson for AT&T confirmed that, like the other agreements, the deal is non-exclusive, involves the assistance of the city in dealing with zoning and access to city right-of-way and also includes no financial terms or agreements other than those that will be negotiated later.

Recent WRAL TechWire coverage of NCNGN:

  • Why is AT&T expanding to Durham?
  • Durham: AT&T agreement isn’t inclusive
  • Winston-Salem is first to sign AT&T agreement
  • NCNGN backs AT&T plan

Carrboro is the remaining government still in the process of formalizing the agreement, and a decision is expected shortly.

AT&T is seeking cooperation from local governments just as Google Fiber has in its own negotiations.

The North Carolina Next Generation Network consortium includes Duke, N.C. State, UNC-Chapel Hill and Wake Forest universities as well as municipal governments in Raleigh, Cary, Durham, Chapel Hill, Carrboro and Winston-Salem. 

AT&T has proposed to upgrade its existing U-verse Internet and entertainment network to a fiber-optic based network that would support speeds 10 times faster than traditional cable. Called “U-verse with GigaPower,” the ‘giga” plays off the term gigabit for speed.

Google is also considering much of the Triangle for deployment of its Google Fiber network.