State, Federal Hostility to Localities Unlikely to Improve Soon, NATOA Told

Municipalities face a "hostile regulatory environment, which is unlikely to get better" with the current FCC, said Philadelphia attorney Michael Athay from Bradley Berkland. Like small-cells bills in many states, HB-2564 in Pennsylvania (see 1808090019) is a big threat to localities, Athay said. "Everyone really has to be attentive to this kind of legislation and be prepared to fight it." Governments can negotiate a better deal at the local level, Athay said, but must be willing to offer what industry wants most -- faster access to the right of way (ROW). Local deals are helpful evidence in fights against state and federal pre-emption, said Mitsuko Herrera, special projects manager in Montgomery County, Maryland.

San Jose offered faster small-cells deployment to carriers in exchange for support for more broadband and digital inclusion, said Shireen Santosham, the city’s chief innovation officer. FCC Commissioner Jessica Rosenworcel earlier called the plan a model for other localities (see 1806280007). San Jose finalized deals with carriers after Mayor Sam Liccardo (D) resigned from the FCC Broadband Deployment Advisory Committee. The city believed BDAC was headed to “predetermined outcome” driven by corporate interests, said Santosham. The deal never would have happened if Gov. Jerry Brown (D) hadn’t vetoed a small-cells bill last year, she said. Rates would have been much lower, there would be no digital inclusion fund and the city wouldn’t have been able to set design requirements, she said.

Carriers think they can get a deal with more favorable financial terms, said XG Communities President Monnie McGaffigan, a consultant for local governments. Santosham noted San Jose had some leverage on rates because it’s a Silicon Valley city attractive to carriers. A rural Maryland town couldn’t charge the same as Baltimore, said Herrera, but smaller communities may ask for things other than cash. A city could ask a carrier to connect a small cell’s fiber connection to a nearby public Wi-Fi hot spot, she said. Such an arrangement can happen only if the community isn’t precluded from signing private-public partnerships under federal or state law, she said.

Carriers have good people, "but they have an agenda," McGaffigan said. There can be great outcomes when industry and local governments work together, she said. Locally, most providers want to collaborate, said Herrera. But there's a "total disconnect" with lobbyists at the state and federal levels, she said.

“Local governments will have to fight or roll over,” said Spiegel McDiarmid’s Tim Lay on a later panel. Expect one or more FCC infrastructure orders this fall pre-empting local governments, the local government attorney said. The FCC probably will try to shorten shot clocks, adopt a “deemed granted” remedy, compel small-cell access to local ROW and restrict ROW compensation to costs, said Lay. Cities have “philosophical disagreement” with a similar proposal by Congress (S-3157), said National League of Cities Principal Associate-Technology and Communications Angelina Panettieri. Cities seek to dispel a Washington sentiment that local government is stymieing business progress, she said. NLC and NATOA Monday released a model ordinance and guide to small cells (see 1808270044).

More than a dozen states probably will weigh small-cells bills next year, with talks continuing in states where bills failed, said Wireless Infrastructure Association Director-Government Affairs Zac Champ on another panel. Michigan and Pennsylvania bills are active now, he said. More than 20 states earlier passed small-cells bills. The wireless industry wouldn't want state work to be disrupted by Congress's bill, which is still early in the process, said Champ. Increasing desire for wireless drives industry eagerness to roll out 5G facilities, he said amid several challenges by audience members: "We are trying to serve your constituents with what they're demanding."

Meanwhile, there's no word yet from Pennsylvania legislators on proposed revisions to the state small-cells bill that were submitted about a week ago by Pennsylvania associations for municipalities, township commissioners and boroughs, local government attorney Daniel Cohen told us on the sidelines of NATOA.

NATOA Notebook

Declining cable franchise income is forcing public, educational and governmental channels to get creative about finding revenue, the conference heard. Movement away from cable as the predominant video distributor has “destabilized revenue,” and if cable fees are the sole source of revenue, “it will be a deathbed,” said Alliance for Community Media CEO Mike Wassenaar. Complacency is one of the “silent killers” for PEG, with many too reliant on “mailbox money,” cable franchise revenue that comes in every quarter, said Martin Jones, president of MetroEast Community Media in Portland, Oregon. PEG providers must have good content as they compete for eyeballs and find ways to connect with younger people who are “cord nevers," he said. MetroEast also has digital literacy programs engaging a diverse community, he said. PEG channels have been “speaker” platforms but should be communications platforms for communities, he said. It’s a “giant mistake” for PEG stations to think of themselves only as TV stations, said local consultant Sue Buske. Instead, be “community, media and technology centers,” exploring local partnerships and entrepreneurial opportunities, she said.