Internet Service Providers drew the broadband arrow from their qu...
Internet Service Providers drew the broadband arrow from their quiver of arguments against raising pole attachment rates that cable operators pay, in comments filed at the FCC last week. Increasing rates from a low cable rate to a higher…
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telecommunications rate because cable operators generally provide VoIP service would undermine the FCC’s broadband goals, the National Cable and Telecommunications Association said. “The best means of achieving the Commission’s goal of promoting broadband would be to enable all broadband providers to pay rates established under the existing cable rate formula,” it said. The comments came in response to a petition for a declaratory ruling brought by four power companies. Phone companies also invoked broadband goals in arguing the proposed rate hike. “The Commission should be concerned that ensuring such costs do not unnecessarily deter the extension of broadband networks and the adoption by end users,” said USTelecom, suggesting the FCC develop a single rate for all broadband pole attachments. Electric utilities disagreed. Phone companies support a rate for all broadband providers somewhere between the telecom rate and the cable rate, Verizon said. Forcing cable operators to pay the higher telecom rate will speed broadband deployment because it will clear up questions about what rate certain operators should pay, ending disputes and freeing up resources to be devoted to deployment, petitioners American Electric Power Service Corp., Duke Energy, Southern Company and Xcel Energy said. High pole attachment fees are not deterring rural broadband deployment; it’s the capital costs of reaching those areas that curb it, a coalition of other utilities said. “One glaring problem with the cable industry’s current pole attachment subsidy is that cable operators undoubtedly will not take the tens of millions that they save on pole attachments in urban and suburban systems, where the systems are fully deployed and customers and revenues are abundant, and invest that windfall in rural and other unserved areas where customers and revenues are scarce” said the Coalition of Concerned Utilities, made up of Allegheny Power, Baltimore Gas and Electric, Dayton Power and Electric, FirstEnergy, Kansas City Power and Light, National Grid, NSTAR and PPL.