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NATOA and Conference of Mayors, in separate filings, warn FCC not to jeopardize local government Jobs to subsidize private entities in NBP; NATOA Files Comments on Anchor Institutions

January 28, 2010 2:52 PM

Yesterday, NATOA joined with local government and public interest groups to submit two filings to the FCC in response to a final call for comments on all issues related to the National Broadband Plan.  The NBP is due to Congress on March 17th, one month later than it was initially scheduled. 

 

 NBP Filing - Rights of Way Filing:

 

NATOA and other local governments warned the FCC not to use the NBP to take away significant Rights-of-Way (ROW) management away from local governments or threaten municipal coffers at a time that local governments are suffering layoffs.   NATOA warned that setting “compensation” at only cost recovery would be a windfall to private telecommunications companies that would not result in any increased broadband deployment – instead, it would only result in increased profits to these companies and layoffs of municipal employees or losses of municipal services. NATOA stated that the FCC has absolutely no legal authority over local ROW permitting or fees and rejected any argument that “fair and reasonable compensation” (which is what local governments are entitled to for ROW access under the Communications Act) is limited only to cost recovery.  To support these claims, the filing included detailed economic and academic studies that both concluded that limiting local compensation for ROW fees would not lead to increased broadband but would instead result only in increasing the “digital divide.”

 

NATOA also pointed out that ROW issues are community issues – not just telecommunications issues – and the lost revenue will hurt local community resources such as schools, fire services, and police departments.  NATOA reminded the FCC of the widespread and well-publicized crisis in local and state budgets at this time and highlighted some illustrative examples such as Portland, OregonPortland’s budget crisis has already required it to freeze salaries and must cut expenditures by another $8.9 million to balance its budget for this year.  If Portland lost its revenue from ROW fees and taxes, it would be devastating and would cost many essential personnel such as police officers and firefighters to lose their jobs.  Portland is only one example and is not unique.  The filing makes quite clear that if the FCC forbids communities from obtaining fair market value for the use of ROW, the impact on already strained local budgets will be severe.  Rather than taking such actions, NATOA and its co-filers recommended that the FCC establish a partnership to work with local governments to establish a best practices guide to ROW management and encouraging localities to leverage their resources for broadband deployment.

 

The full text of the ROW filing is available here.

 

Conference of Mayors Letter to the FCC Commissioners on Local Management of Rights of Way:

 

Yesterday, the United States Conference of Mayors also sent a letter to the FCC Commissioners urging them to “reject proposals that would limit local authority to manage local rights-of-way and/or would negatively impact local budgets.”  The letter pointed out that Congress intended, in the Communications Act, to leave Rights of Way to local control.  The Letter also highlighted the same budgetary concerns raised by NATOA and its co-filers.  In short, the loss of revenue from rights of way fees will have a crippling effect on cities already anticipating a budget shortfall in the next year.  This will result in layoffs, salary freezes and reductions, increased fees to citizens (who are themselves struggling in the current economic climate), and reductions in essential services.  NATOA applauds the Conference of Mayors for its attention to this critical issue for our nation’s communities. 

 

The full text of the Conference of Mayor’s Letter is available here

 

Anchor Institution Networks Filing:

 

In another filing, NATOA joined with a number of public interest groups to support Anchor Institution Networks.  The filing pointed out the unique and urgent need of anchor institutions (such as schools, libraries, hospitals, universities, job training centers, etc.) to obtain high-capacity broadband.  It also pointed out that the private sector has, so far, failed to address this need.  The filing urged the FCC to promote the development of these networks through the NBP by supporting “the development of a ‘Unified Community Anchor Network’ (“UCAN”), a ‘network of networks’ from which all anchor institutions who wish can receive high capacity broadband service.”  The filing also called on the FCC to recommend the removal of restrictive legislation and ordinances to the development and expansion of these networks. 

 

The full text of the anchor institution filing is available here.