Google Fiber Buys CLEC Fighting AT&T in California
Google Fiber’s acquisition of Webpass could put the internet company in a conflict with AT&T in California. Google Fiber agreed to acquire Webpass, a California CLEC specializing in point-to-point wireless broadband, Webpass said Wednesday. Webpass has an ongoing complaint against…
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AT&T in the California Public Utilities Commission. The CLEC filed May 25 an application for arbitration after AT&T refused to give permission to run fiber through AT&T conduits and insert splice cases and coil loops in AT&T manholes. AT&T replied June 3 with a motion to dismiss, saying the parties’ interconnection agreement doesn't allow the kind of dispute resolution sought by Webpass. In the short term, the acquisition may not affect the CPUC proceeding, because the agency must approve the deal first and that could take time, Tellus Venture President Steve Blum emailed Thursday. Tellus consults with cities on community broadband. There could be a long-term impact from the deal “because Google has been relatively aggressive in pursuing these issues here in California, and particularly at the CPUC,” he said. “They've been trying to gain access to poles and conduits as a non-CLEC -- as a video company, under California law -- but acquiring a CLEC gives them a whole new range of options in terms of getting what they want from telcos (AT&T, mostly), cable and the electric utilities.” In California, Webpass has customers in San Francisco, Oakland, Emeryville, Berkeley and San Diego. Other markets include Boston, Chicago and Miami, Miami Beach, and Coral Gables in Florida. “Joining Google Fiber will be a great development for our users because the companies share the same vision of the future and commitment to the customer,” said Webpass President Charles Barr in the company’s blog post announcing the deal. “Google Fiber’s resources will enable Webpass to grow faster and reach many more customers than we could as a standalone company.” Webpass expects the deal to close this summer, subject to customary closing conditions and regulatory approvals, he said. Webpass didn’t disclose terms or comment on how the deal affects its complaint against AT&T. Google confirmed the deal on Twitter but didn’t comment further Thursday.