Cities Could Look to Muni as Google Pauses Fiber

Meanwhile, the company moved closer to resolving concerns about its acquisition of a Webpass telecom affiliate, which needs the California Public Utilities Commission's OK. And Comcast joined AT&T in suing Nashville over the city's Google-backed one-touch, make-ready ordinance.

Barratt said the company’s modified plan “enhances our focus on new technology and deployment methods to make superfast Internet more abundant than it is today.” Work will continue in cities already launched or under construction, he said in a Google Fiber blog post included in a Google email Wednesday. “For most of our ‘potential Fiber cities’ -- those where we’ve been in exploratory discussions -- we’re going to pause our operations and offices while we refine our approaches.” Affected are Dallas, Jacksonville, Los Angeles, Oklahoma City, Phoenix, Portland, Oregon, San Jose and Tampa. “We’re ever grateful to these cities for their ongoing partnership and patience, and we’re confident we’ll have an opportunity to resume our partnership discussions once we’ve advanced our technologies and solutions,” wrote Barratt: In exploratory cities and certain supporting operations, “we’ll be reducing our employee base.”

“This is a strong reminder that the great need for infrastructure investment does not often fit the short term profit needs for large private sector firms,” emailed Institute for Local Self-Reliance Community Broadband Networks Director Christopher Mitchell. “People need to recognize that absent smart policies, from municipal fiber and/or conduit to one touch make ready, communities are not likely to get the better networks their local businesses and residents need.”

“It's a disappointment for the cities on Google Fiber's ‘potential’ list, but at least now they have an answer and can move ahead on their own,” said Tellus Venture President Steve Blum, a broadband consultant for local governments in California. “Palo Alto and Los Angeles, for example, had municipal fiber projects in the works before Google came along, and I expect them to revisit those plans. It's not the decision any of those cities wanted, but at least it's a decision and now everyone can get on with whatever is next.”

The announcement confirms speculation, and the company’s new plan likely includes wireless technology for the last mile, Wells Fargo analyst Jennifer Fritzsche emailed investors. “Google does not exactly define how it will refine its plan, but it does not seem to be backing away from a longer-term plan of pushing faster connections,” she said. “While we cannot pretend to know Google's ultimate plan, we still believe it involves a last-mile wireless solution using its Webpass acquisition. To do this, Google would still need a healthy fiber pipe to the base station from which the wireless signal would start.”

The company recently began talks with critics of its Webpass acquisition, said an Oct. 21 CPUC administrative law judge email ruling in docket 16-08-009 dated Friday. Google closed on most of the Webpass deal already, but needs OK for the company’s CLEC affiliate, which holds a certificate of public convenience and necessity from the CPUC that includes pole access, interconnection and other regulated telephone company benefits. The National Diversity Coalition opposed the deal in September, saying it didn’t satisfy the statutory public interest test and that Google had an unremarkable record on diversity. In a formal ruling Monday, the judge set the hearing for Nov. 30. Judge Adeniyi Ayoade granted parties’ request to postpone a Nov. 1 prehearing conference. “According to the request, the parties have been in useful discussions, and are working to resolve the issues in this proceeding,” he said. A Google Fiber spokeswoman confirmed conversations with the coalition are ongoing. The coalition didn’t comment.

Meanwhile, Google Fiber continues to fight for one-touch, make-ready policies meant to ease pole attachment access for new entrants. Comcast sued Tuesday over the Google-backed Nashville ordinance. Comcast's argument was similar to that of AT&T, which also sued the city (see 1609230039). In the complaint (in Pacer), Comcast said the law "upsets the existing, carefully designed make-ready process by authorizing new users of utility poles to interfere unilaterally with an existing provider’s equipment without that provider’s authorization.” It’s "preempted by federal law and violates the Contract Clauses of the U.S. and Tennessee Constitutions," and exceeds authority under the Metro Nashville Charter, the company said.

In Kentucky, where AT&T and Charter Communications are separately suing Louisville over a similar ordinance because they claim the state pre-empts the city’s authority, AT&T Monday protested a Google Fiber motion to intervene in support of the city. In an opposition (in Pacer) filed at U.S. District Court in Louisville, AT&T said Google shouldn't be allowed to file an amicus brief because it’s biased. “Google Fiber is not a ‘friend of the court’ -- it is neither acting at the request of the court nor offering an impartial view of the issues the court is being asked to address," said the telco. "Instead, Google Fiber seeks to present highly partisan views in advancement of its own pecuniary interests.” Meanwhile, the Louisville court Tuesday issued an order (in Pacer) extending the deadline for the city to respond to Charter's complaint until Nov. 25. The Google Fiber spokeswoman didn't comment on the Comcast complaint or AT&T opposition.