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Bipartisan Support Expected

NATOA Open to Efforts to Speed 5G Small-Cell Siting, Amid State, FCC Efforts

Local government officials would be glad to work with the FCC and industry on small-cell siting issues, but don't see an immediate problem, said NATOA Executive Director Steve Traylor in an interview Thursday. In a speech Wednesday at the CTIA conference, FCC Chairman Tom Wheeler said the FCC will drive 5G growth by working with local governments to speed siting of new wireless facilities (see 1609070033). The FCC could approve rules to ease small-cell siting next year, Cowen analyst Paul Gallant said in a research note Wednesday. The wireless industry also is asking states to streamline siting rules for small cells.

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Local governments aren’t getting “tons of applications​” for small cells, and industry hasn’t complained to NATOA about local siting problems for 5G, Traylor said. "We welcome calls from industry saying we're having particular problems on this,” but so far it doesn’t seem like a widespread problem, he said. Traylor cautioned not to generalize localities’ practices reviewing siting applications. "You can have one bad jurisdiction do something and everybody's painted with the same brush. And it's really not fair." While ready to work with the FCC, Traylor said “siting issues are really local decisions.” Local governments know their communities best, he said. “Something that works in a very rural community is not going to work in Boston.”

More needs to be done to tell the story of what 5G actually is and when it's coming, Traylor said. While 5G supporters say it’s a game changer that's coming soon (see 1609080069), others are skeptical and think it's many years away, he said. The latter may not find the industry's small-cell siting concerns pressing, he said. NATOA plans to make 5G a key topic at its annual conference Sept. 19-22 in Austin, Traylor said.

Wheeler appears to have bipartisan support at the FCC for reducing 5G barriers, Gallant said. Wheeler “struck a very collaborative tone” toward local officials, but “the FCC clearly will need to consult extensively with key local and federal officials before any policy shifts on small cells,” he wrote. Defenders of local zoning and the environment in Congress “could complicate the FCC’s efforts on small cells,” but with the support of GOP commissioners, “a near-term FCC proposal to help small cell deployment stands a good chance of enactment in 2017 regardless of whether [Hillary] Clinton or [Donald] Trump wins the presidency," he said.

Wheeler hasn’t provided specifics. The chairman “is spending a lot of time thinking about, we’re spending a lot of time thinking about, what can we do to help advance and speed siting for small cells and trying to limit some of the restrictions to siting and also decrease some of the costs,” said Edward Smith, Wheeler’s wireless aide, on a panel at the show Wednesday.

Gallant predicted the agency may consider a broader exemption from FCC historical and environmental review, plus a federal shot clock that would deem small-cell applications granted if a municipality fails to act within 90 or 150 days. NATOA will wait to see what the FCC proposes, said Traylor, noting there’s a federal 60-day deemed-granted shot clock for facilities modification requests under Section 6409(a) of the 2012 Taxpayer Protection Act.

The wireless industry also urged states to streamline wireless siting rules. The New York Public Service Commission is looking at a CTIA petition to ease wireless industry access to state utility poles (see 1608020029). The California Public Utilities Commission has petitions from the Wireless Infrastructure Association (WIA) and California Cable and Telecommunications Association for wireless attachment rights (see 1608300037). On local issues, industry frequently attacks on state and federal levels simultaneously, said Traylor. NATOA prefers when industry speaks to its members directly, he said.

WIA “is working with the FCC and in states around the country to improve the regulatory environment for the industry,” association President Jonathan Adelstein said in an email. “We’re working to break down barriers to the responsible deployment of wireless networks in states and local jurisdictions on a daily basis. Businesses shouldn’t be hindered by outdated or vague rules that get in the way of their efforts to efficiently deploy new wireless infrastructure or upgrade existing facilities. We need to respect and work with local communities to address their real concerns -- and push back when they go beyond reason.”

Meanwhile, Office of Engineering & Technology Chief Julius Knapp gave more details Wednesday on Wheeler’s 5G announcement the FCC will soon launch an electronic filing system for accepting applications for program experimental licenses. “We have been working to stand up the IT system necessary to facilitate the program experimental license for several years, and we are near completion,” Knapp said on the FCC blog. “Within a few weeks, we will release a Public Notice announcing that the program experimental license is open for business.” Under the new license, he said, “qualifying entities will have even fewer administrative hurdles to jump through, easing the path toward experimentation, and ultimately, innovation.”

Earlier this week, Indiana Gov. Mike Pence (R), Trump's running mate, unveiled an agreement to lease the state's cell towers and other communications infrastructure in an effort to expand rural and agricultural broadband and wireless services. The agreement is with Ohio-based Agile Networks, said an Indiana government news release Tuesday. Agile will pay $50 million upfront to manage, operate and market the communications infrastructure, then $36 million in revenue share over the deal's initial 25-year term. If the agreement is renewed for another 25 years, Agile will pay the state an additional $10 million upfront and $164 million over the renewal term. The Indiana Finance Authority approved the agreement, which needs a final OK by the state’s legislative budget committee.

This agreement, if approved, will put underused assets into full play, enhance Indiana’s communication capabilities throughout the state, and fund the state’s bicentennial projects,” Pence said. The networking company’s “open access model will give wireless carriers and providers the ability to easily enter new urban and rural markets,” said Indiana Office of Management and Budget Director Micah Vincent. “The impact of significantly increasing broadband availability in underserved areas will facilitate economic development, increase educational learning and telemedicine opportunities, increase growth for rural businesses, advance agricultural technologies, and provide reliable broadband for residents.”