In a partial victory for cable operators, the FCC's Wireline Competition Bureau has clarified that utility pole owners cannot charge the entire replacement cost for a pole when the party requesting to attach to that pole is not the sole cause for that replacement.

That came in a declaratory ruling that stemmed from its decision, also announced Tuesday (Jan. 19), to deny a petition by NCTA-the Internet & Television Association.

Also Read: FCC Seeks Comment on Pole Request

In July of last year, NCTA asked that the FCC clarify that in unserved areas, it was unjust and unreasonable for utility pole owners to charge new attackers the entire replacement costs. The bureau, in denying that declaration, said it was more appropriately handled in a rulemaking proceeding, which would allow for more tailored regulations.

But it also said that in response to the record prompted by the NCTA petition, it found that some utilities might be delaying replacements until they got a request for a new attachment, at which time it charged the entire price of the pole to that new attacher.

In order to try and put an end to that, it came out with the declaration about not shifting the entire cost to the new attacher when there were already other reasons for replacement.

Also Read: FCC Defends Pole Attachment Dereg

“Today’s ruling will help promote broadband deployment by providing additional clarity regarding pole attachment arrangements and we look forward to a future proceeding to consider these issues more fully so as to unleash as much broadband investment as possible," said NCTA-The Internet & Television Association of the partial victory.

ACA Connects commends the FCC’s Wireline Competition Bureau for issuing a Declaratory Ruling that begins to clarify the obligations of investor-owned utilities, who are subject to the federal pole attachment statute, to allocate pole replacement costs in a just and reasonable manner," said association President Matt Polka. "The Bureau appropriately ruled that investor-owned utilities may not charge new attachers for pole replacements if they are not the sole cause for the pole replacement."

INDIANAPOLIS – Rising pole attachment fees and delays in obtaining necessary permits from municipalities are the biggest roadblocks in building out broadband infrastructure in rural America, a panel of experts said at The Independent Show Monday (July 24).

Read More: Get complete coverage of #TIS17.

ShenTel EVP and chief operating officer Earle MacKenzie said for the small market telecom company, simply obtaining permission to string its lines on a utility pole and obtaining a reasonable rate can delay projects for months.

“It’s a different story with each pole owner,” MacKenzie said at the panel session, moderated by Kelly, Drey & Warren LLP partner Tom Cohen. One of the major issues is getting a good estimate upfront and getting detailed billing so we know what we’re paying for.”

He added that last year, ShenTel had 60 construction projects that were delayed an average of 60 days because of pole attachment issues.

While obtaining permits and getting local government approvals can be a hassle, Chattanooga mayor Andy Berke, who has overseen the construction of one of the most extensive municipal broadband networks in the country, said they are necessary.

“We really care about aesthetics,” Berke said, adding that making sure the city gets a fair price and engages with its contractors to make sure the process goes smoothly. “We don’t want 25 people digging up streets. We want to dig once.”

But he added that cities want to be fair to contractors, while keeping their priorities straight.

“Part of the challenge for us is to set up a regulatory scheme and a payment scheme that is fair to the city and constituents and to allow the economic development to put people to work,” Berke said

McKenzie added that Chattanooga can be the exception. Many municipalities, he added, have no clue what they want or how to get it. He pointed to a project in the city of Roanoke, Va., where the telco was delayed in getting the proper permits to run fiber to local schools.

“If we are serious about getting service to everyone, we need to take down the roadblocks,” MacKenzie said. “The last thing we want to do is irritate our customers. We really are in business to make money and make our customers happy. If we have to scratch a different itch in every town, it gets expensive and in some cases it’s not worth going forward.”

Berke suggested that contractors and providers make sure they take into account where local governments stand when they are proposing to build a network to ensure a smoother process.

“If you’re going to a city that doesn’t have clear rules, make sure you’re talking the language of the people running city government,” Berke said.

The Federal Communications Commission, which has in the past kept pole attachments disputes at arm’s length, opting instead to let the market find a solution, has been considering getting more involved, said FCC Wireline Competition Bureau deputy bureau chief Madeleine Findley. FCC chairman Ajit Pai created the Broadband Deployment Advisory Committee earlier this year to specifically address these issues. Findley said the BDAC docket is still open and encouraged operators to offer questions and comments about issues including timelines, rates and fees, best practices and ways to encourage more efficient deployment.

“The chairman is very concerned about closing the digital divide,” Findley said, adding later that the commission is aware that there is no simple solution for the problem.

“The commission is cognizant that this is not an area where one size fits all,” she said. “There are different issues. We want to be available as a resource.”

Findley said the commission is considering whether to impose a 180-day shot clock on itself for such issues to help speed up the process.  

“This is not a once and done thing for the commission,” Findley said. “It’s going to be an iterative conversation. We want to be a participant in that conversation.”

In another victory for Google Fiber, Nashville’s Metro Council awarded final approval to a “One Touch Make Ready” rule that Google Fiber said was necessary for it to accelerate its deployment in the city.

Final approval came way Tuesday of a voice vote, according to The Tennessean, noting that Nashville Mayor Megan Barry is expected to sign the bill into law.

“One Touch Make Ready appears to be a common-sense way of speeding up the deployment of high-speed internet throughout Davidson County," Barry said in a statement, per the paper.

The city awarded preliminary approval to those utility pole reform rules earlier this month.

The final approval could set up a legal battle. Area incumbent AT&T has already threatened to file a lawsuit if the ordinance was given the green light and follow legal steps it has already taken in Louisville, Ky., after that city approved similar rules.

Both AT&T and Comcast were disappointed in the result in Nashville, with AT&T arguing to The Tennessean that there are better alternatives than the 'One-Touch' policy, while Comcast adding that it would weigh whether "further proceedings" were necessary.

In a blog posted earlier this month, Chris Levendos, director of national deployment and operations at Google Fiber, outlined the reasons behind Google Fiber’s “incredibly slow progress” there, claiming that that of the 88,000 poles required to attach Google Fiber for its rollout, more than 44,000 will require make ready work, but  just 33 of them have been made ready.

Google Fiber issued this statement following Tuesday’s vote:

"It’s a great day for Nashville. Congratulations to Nashville Metro Council and residents on passing Council Member Davis’ One Touch Make Ready ordinance on its third and final reading. This will allow new entrants like Google Fiber to bring broadband to more Nashvillians efficiently, safely and quickly. We look forward to continuing our work with NES and the local community."