Wednesday, September 12, 2018

FCC vs. LFAs: Who knows what’s best for US?


At its September 26th meeting the FCC will propose two important regulatory changes that will have an impact on municipalities.  One of the proposed rule changes would impact the deployment of 5G wireless.  The other would modify local franchising requirements for cable services. 

Arguing that fewer rules and lower costs will speed the deployment of 5G across the country, including into small, rural communities, the FCC wants to “establish shot clocks for state and local approvals for the deployment of small wireless facilities, and provide guidance on streamlining state and local requirements on wireless infrastructure deployment.”  Sounds great!  But, local franchise authorities (LFAs) don’t necessarily think so.  LFAs perceive the “need for speed” as a move to take a source of revenue away from them.

Also, at the September meeting, the Commission will consider a Second Further Notice of Proposed Rulemaking to address two issues remanded to the FCC last year from a case brought before the 6th Circuit Court of Appeals.  In the case, the Court ruled that the FCC cannot bar LFAs from requiring franchisees to provide non-cable services and the FCC must better support why it expanded its definition of franchise fees to include non-cash requirements toward the 5% cap on LFA franchise fees.  In a recent blog post, Ajit Pai, the FCC Chairman, stated that the Commission plans to put-forth proposals that promote competition and encourage cable operators to invest in new facilities and services. The LFAs will be sure to weigh in as they look to protect their interests (once again).


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