ISPs Bristle at NARUC Group's Focus

The task force posted draft recommendations last month, including that state legislators remove barriers to utilities providing broadband in unserved and underserved areas (see 2105170043). The group is scheduled to meet virtually July 14 to make final suggestions for NARUC’s July 18-21 meeting.

ISP organizations reminded the group to address their barriers, too. Proposed recommendations include more checks but “nothing positive about working with traditional providers,” said NCTA Vice President-State Affairs Rick Cimerman. Recommendations’ focus on utilities is “bewildering” to USTelecom, said Mike Saperstein, vice president-strategic initiatives and partnership. Providing electricity and broadband is “not the same thing,” he warned: utilities have no experience providing residential broadband.

“We've given the traditional incumbent providers years and years to get this solved, and it's not solved,” responded task force Chair Chris Nelson. “Let's get somebody who will.” Nelson earlier pressed Charter Communications Group Vice President-Regulatory Affairs Dan Gonzalez on seeking limits on cross-subsidization. Nelson asked why policymakers should care about cross-subsidization if it means unserved areas get quality service. “My focus is on the places where there's nothing and there is no competition.” Charter warned cross-subsidization would create winners and losers. Nelson responded that the winner might be the consumer getting broadband. Gonzalez said the loser could be an electric customer paying higher rates.

NARUC’s proposal on utility broadband got kudos from Ameren, American Electric Power, National Rural Electric Cooperative Association (NRECA) and Utilities Technology Council officials. Some asked the panel to recommend that state legislators make it easier for electric utilities to use easements for broadband. NRECA knows of 18 states that passed laws on easements, and 20 that clarified co-op broadband authority, said Brian O'Hara, senior director-regulatory issues for telecom and broadband. No states ban service, but lack of clarity can deter co-ops, he said. Nelson asked if requiring telecom on easements could be considered a taking of private property. Tilson Vice President-Utilities Elin Swanson Katz responded that adding fiber is a minimal burden.

ExteNet is concerned there was no recommendation on wireless broadband, or even a mention, said Senior Counsel-Regulatory Affairs Haran Rashes. Most state commissions don't regulate wireless, but many have jurisdiction over pole attachments, said Rashes, noting 22 states and the District of Columbia reverse preempted FCC authority. “Many state pole attachment rules and regulations remain written for the past and have not been revisited.” The committee should urge commissions to review rules and incorporate wireless attachments, said Rashes.

Missouri Public Service Commissioner Maida Coleman commented in the Zoom chat, “Excellent points by Mr. Rashes.” Katz agreed wireless should be part of the discussion because she said it can be middle-mile infrastructure. “Pole attachment rates are an area that is ripe for state action,” NCTA’s Cimerman said later in the meeting. High municipal and electric cooperative pole rates discourage cable operators, he said.

Don’t overlook anchor institutions, which can be instrumental in providing affordable broadband, said Schools, Health & Libraries Broadband Coalition Executive Director John Windhausen. The National Lifeline Association supports a proposed recommendation that the FCC mull transitioning the emergency broadband benefit into permanent Lifeline subsidy increases, said counsel John Heitmann. New York Law School Advanced Communications Law and Policy Institute Director Michael Santorelli cautioned that such a change could require customers to pay a higher surcharge.