Broadband Providers, Electric Utilities Find No Common Ground on Lowering Pole Attachment Rates
The telecom and cable industry and electric utilities drew different lessons from comments to the FCC on pole attachment rates. Replies largely repeat arguments made in the initial comment round (see 1506050037). Cable and telco interests asked the FCC to…
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take further steps to harmonize at lower levels the pole-attachment rates they must pay, while utilities, which own most of the poles, are happy with the current regime. The record “overwhelmingly demonstrates” that the agency should quickly grant the petition for reconsideration filed by Comptel, NCTA and tw telecom in 2011, NCTA said. “It appears that certain electric utilities are taking advantage of the reclassification of broadband as an excuse to significantly raise pole attachment rates for cable operators and telecommunications carriers,” the cable association said. “Granting the NCTA/COMPTEL Petition is necessary to prevent this result, which is why the petition is supported by a wide range of broadband providers, including cable operators, telecommunications carriers and wireless providers.” Six major power companies, filing together, drew the opposite conclusion. The record shows that pole attachment rates are an insignificant part of operating expenses for most ISPs, said Ameren, American Electric Power, Duke Energy, Oncor, Southern Co. and Tampa Electric. “Broadband providers -- cable companies in particular -- continue to repeat the message that lower pole attachment rates mean greater broadband deployment,” the utilities said. “But there is no evidence to support this message. Continuously repeating it does not make it true.” Four years after the initial pole attachment order, the record “is devoid of any evidence that lower pole attachment rates spur growth, competition, or benefits to consumers in the market for broadband services, and in fact, electric utilities have demonstrated that the opposite is true,” said a coalition of electric utilities, representing additional power companies. It's to be seen whether the order reclassifying broadband as a Communications Act Title II service will have any effect on pole attachment rates, the coalition said: Granting the relief sought would be “contrary to law, and arbitrary and capricious.” Comments were posted in docket 07-245.