FCC Adopts Pole Attachment Order and Further Rulemaking

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Today, the FCC adopted an order and further rulemaking on pole attachments during its open commission meeting. The order adopts a general principle on nondiscrimination which gives attachers the right to use certain space and cost saving practices such as boxing and extension arms, wherever practical and consistent with utility standards for safety and reliability. Under this principle, "utilities must allow attachers to use the same attachment techniques that the utility itself uses in similar circumstances, although utilities retain the right to limit their use when necessary to ensure safety, reliability, and sound engineering." This non discrimination principle also applies to the timely processing of pole attachment permits and make ready.

The further rulemaking will also take up more detailed issues. First, the FCC intends to revise its general approach towards pole attachments which was adopted in 1996. At that time, the FCC opted to rely on guidelines and rules of general applicability supplemented by "swift and specific enforcement procedures" to resolve disputes. Now, the FCC intends "to rely in part on new, broadly applicable rules to ensure that terms and conditions of access to pole attachments are just, reasonable, and nondiscriminatory, as well as a continued reliance on an improved enforcement regime." In that vein, the FCC proposes a five stage process - (1) survey; (2) estimate; (3) attacher acceptance; (4) performance; and, if needed, (5) multiparty coordination for wireline attachments. Utilities would have 45 days to perform a survey and 14 days to provide an estimate. Applicants would have 14 days to respond to the estimate, and if the applicant accepts, utilities would have 45 days to perform make ready. There would be a 30 day time period for coordination among existing attachers. The FCC has asked for comment on variations to these deadlines to account for the number of poles in an application and on whether this timeline should apply to wireless attachments. Finally, it asks for comments on other issues related to timelines, including timelines for ducts, conduit and rights-of-way.

Separate from the issue of timelines, the FCC is asking for comment on the use of third party contractors, including a proposal to allow attachers to hire utility-approved/certified contractors to perform make ready and surveys if a utility fails to meet deadlines. These contractors would be subject to supervision and direction by utilities and attachers; and utilities would be able to deny access to the electric space for contractors "except where the contractor has special communications-equipment related training or skills that the utility cannot duplicate." The FCC also proposes various other rules such as payment for make ready, schedules for charges, and simplifying the processes for jointly-owned poles, to expedite pole access. Additionally, the FCC is inviting comment on ways to improve access to information about pole attachment - but the Commission does not necessarily propose to establish a "pole attachment database" as described in the National Broadband Plan. Rather it invites comment on the issues with such a concept.

Finally, the FCC invites comment on broad issues such as dispute resolution and pole rental rates. On the issue of dispute resolution, it devotes significant attention to the issue of unauthorized attachments and the "sign and sue rule". On the issue of pole rental rates, the FCC proposes a revised approach regarding "cost" which would set a range for rates between the telecom rate at the high end and a cost-causation rate (i.e. incremental cost) at the low-end. In addition, on the rate issue, the FCC is still considering extending regulated rates for ILECs.

All of the FCC Commissioners and the Chairman supported adoption of the item during the open commission meeting today, and while they all expressed their belief that it would promote broadband, some explained that it needed to balance the interests of utilities in safety and reliability.

Comments on the further rulemaking are due 30 days after the item is published in the Federal Register and reply comments are due 60 days after it is published in the Federal Register. UTC will provide more information as it becomes available.

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