LOCALITIES BAND TO FIGHT FCC'S CABLE MODEM CLASSIFICATION ORDER
Saying FCC classification of cable modem service as information would deprive already cash-strapped localities of $300 million in revenue in 2002 and more in coming years, 5 national organizations representing cities and counties announced formation of Alliance of Local Organizations Against Preemption (ALOAP) to open legal and political fight against decision. Loss of revenue comes at time when local govts. are facing “tremendous” additional costs in areas such as security following terrorist attacks, they said at media briefing in Washington Tues. to announce filing of bid for U.S. Appeals Court, D.C., review of FCC decision. Organizations comprising alliance are National Assn. of Telecom Officers & Advisors (NATOA), National League of Cities (NLC), U.S. Conference of Mayors (USCM), National Assn. of Counties (NAC), International Municipal Lawyers Assn. Alliance said it was committed to devoting all its resources to get FCC decision overturned and would get communities to take message to Congress.
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USCM Exec. Dir. Thomas Cochran said as first responders, local agencies’ “quick and immediate” response to Sept. 11 was due in part to revenue collected from cable modem fees. “There is absolutely no question that the federal government expects our communities to do even more homeland security,” he said, pointing out that local law enforcement recently replaced National Guard at airports. “This increased responsibility comes at a time when the FCC is siding with cable monopolies over the constitutional rights local governments have to charge cable monopolies fair rent for use of public rights-of-way” (ROW).
“No monopoly should get a federal order to subsidize their rent, while local property taxpayers foot the bill,” National Assn. of Counties Exec. Dir. Larry Naake said. Raising possibility that offerings such as interactive TV also could be classified as information service, he said that with convergence of Internet and TV it was likely that cable would try to shift traditional cable services to modems to avoid obligations and fees under existing franchise agreements. Most “troubling” aspect of FCC ruling is that if cable operator has cable franchise it “can do anything” in ROW without paying rent, attorney Nick Miller said. Asked whether localities couldn’t collect ROW rent from cable as they did with small businesses, Miller said federal law had imposed 5% ceiling on ROW fees that could be collected from cable operators. Lawsuit in D.C. Circuit will be consolidated with similar suits in 9th U.S. Appeals Court, San Francisco, he said.
Far from helping to advance goal of broadband deployment, FCC ruling has “created uncertainty for everyone,” NATOA Exec. Dir. Libby Beaty said. Ruling affects local govts.’ ability to manage customer service issues, she said. “What magic wand is the local government supposed to use to enforce customer service on a service the FCC says is no longer within our jurisdiction,” she asked. FCC wasn’t best place to handle customer complaints, Beaty said: “They do not have enforcement mechanisms to address a consumer’s complaints.” Commission decision could affect even federal employees encouraged to telecommute, she said. NLC Exec. Dir. Donald Borut said agency shouldn’t be able to direct local govts. to relinquish control over ROW to cable modem providers.
Reacting to lawsuit, NCTA said cable operators continued to pay cities more than $2 billion annually in franchise fees and although municipalities viewed FCC action as lost revenue opportunity it would result in savings of $1.50 to $2.50 per month for cable modem customers. “The FCC’s ruling treats Internet service provided by cable operators the same as that offered by other Internet Service providers for franchise fee purposes,” NCTA Senior Vp-Gen. Counsel Daniel Brenner said. - - Dinesh Kumar