As expected (CD March 5 p5), U.S. Dist. Court in Portland, Ore., ...
As expected (CD March 5 p5), U.S. Dist. Court in Portland, Ore., ruled that 10 cities in Ore. didn’t violate Telecom Act by requiring Qwest to pay revenue-based fees for use of public rights-of-way. Nine of cities levied 7%…
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fees, remaining one charged 4%. Qwest had refused to continue paying those fees after ruling last year by 9th U.S. Appeals Court, San Francisco, that franchise fees that exceeded actual cost of managing rights-of-way violated Telecom Act. U.S. Dist. Judge John Jelderks said in March 22 opinion that Qwest had failed to show cities’ fees impeded companies’ ability to provide telecom service. Instead, “Qwest’s failure to pay the fees breached its franchise agreements with the cities,” agreements that Qwest itself negotiated, judge said. “I conclude that the cities’ revenue-based fees are ‘fair and reasonable compensation’ for Qwest’s use of the cities’ public rights-of-way,” judge said. He acknowledged that in brief filed in unrelated case, FCC “expressed doubts whether [Telecom Act’s Sec. 253] allowed revenue-based fees.” However, he said, “the FCC has not directly addressed the issue.” Judge said “Qwest apparently considered 7% revenue- based fees reasonable when it sponsored the state statute allowing such fees.”