The League has learned that communications companies are urging the Federal Communications Commission (FCC) to adopt a new standard that would limit compensation for use of any public property by communications companies and invalidate any fee - even fees based on state statute such as Michigan's Metro Act.
Many communications companies must place poles, wires and boxes on public property (including streets and rights-of-way) in order to reach customers. Such property is valuable and Congress in the Communication Act (Section 253), recognized the public's property need not be given away to private companies. Congress preserved local authority to require these companies to pay a fair rent for its use, just as other businesses pay rents for the properties they use.
The new standard being sought would make such arrangements unlawful and require fees to be based on some federally-mandated and regulated cost model. Such a standard for compensation, being considered by the FCC as part of the National Broadband Plan, would have an immediate, widespread and devastating effect on communities across the country.
Members are urged to contact the FCC and your member of Congress, as well as Senators Levin and Stabenow to urge rejection of proposals that would limit local authority to obtain compensation for, or manage local property and/or negatively impcat local budgets.
Arnold Weinfeld covers federal issues for the Michigan Municipal League. He can be reached at 517-908-0304 or by e-mail.
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