The Federal Communications Commission (FCC) is considering taking action that could result in the loss of substantial right-of-way (ROW) licensing revenues to municipal governments throughout Texas.  On March 17, 2010, the FCC is scheduled to deliver to Congress its National Broadband Plan (NBP) which is meant to establish a road map for expanding broadband capability throughout the United States.  The NBP is expected to recommend better utilization of municipal infrastructure by the communications industry by reducing licensing fees that communications companies currently pay to local governments for the use of local ROW.  This plan may be accompanied by the creation of a federal appeals process at the FCC, instead of state district courts, for addressing ROW disputes.

The Texas Constitution contains anti-gift provisions that prohibit state and local governments from granting any gifts of public money, property or anything of value to private corporations.  In addition, state statues require all manner of public utilities, including communications companies, to pay cities reasonable compensation for the use of local ROW.  For over 100 years, Texas courts have upheld the right of municipal governments to receive “rental fees” at fair market value from utility companies for the use of local ROW.

TATOA is concerned that in order to purse its policy goals in the NBP, the FCC will preempt the Texas Constitution and state law by establishing an industry-friendly national standard for defining “reasonable compensation” as the cost for maintaining municipal ROW under the Communications Act.  Such a cost methodology would reduce ROW licensing fees to a fraction of fair market value and would have a devastating impact on local budgets.  Currently, communications and cable companies pay hundreds of million of dollars to municipal governments throughout Texas for the use of local ROW.  The FCC action threatens to reduce ROW licensing fees received by local governments to a fraction of current amounts.

Most cities are not aware of this debate because it is taking place before a federal agency in Washington, D.C. and within the scope of a technology plan, but be assured that the outcome could negatively impact municipal budgets.  This is why local governments need to take action immediately to prevent the FCC from pursuing this misguided path.  Municipal governments need to engage their congressional representatives to oppose the proposed action by the FCC.

Linked to this message is information local governments may use to take action of their own.  Included is the following legislative package:

(1)     Talking Points – Provide an overview of the issues to assist local officials in face-to-face meetings with congressional representatives.

(2)     Letter from Local Official to Congressional Representative – Seeks assistance from congressional representative, but is not necessary if there is a face-to-face meeting.

(3)     Letter from Congressional Representative to FCC – Asks the FCC not to take action before Congress holds hearings on the National Broadband Plan.

(4)     Letter from Congressional Representative to Vice-President – Seeks White House leadership in protecting local budget from FCC’s preemptive action.

====> Download Action Alert Package

Unfortunately, time is of the essence on this issue.  Please act now to protect your local budget.

Also of interest, NATOA filed ex parte comments with the FCC concerning several proceeding including the ROW issue. You may download NATOA’s comments here

Regards,

TATOA Board of Directors

The 2010 TATOA Conference is scheduled to be held July 29-30, 2010 at the beautiful Sheraton Dallas North hotel located at 4801 Lyndon B. Johnson Freeway in Dallas.  Members – watch your email in early 2010 for special discounted conference rates.

Hotel Amenities Include:

• 309 Spacious guest rooms with Sheraton’s signature “Sweet Sleeper Bed”
• Alejandra’s Restaurant, Hotel Lounge
• Room Service
• 24-Hour Business Center
• High-speed Internet access throughout the hotel
• Complimentary Shuttle to and from the Galleria Mall – every hour from 7:00 am – 10:00 pm
• Complimentary Shuttle to include Addison’s Restaurant Row (over 150 restaurants)
• Eight Golf Clubs within a 4 mile radius of the hotel
• 10 miles north of Dallas Love Field and 15 miles east of Dallas/Fort Worth Int’l Airport
• Starwood Preferred Guest Programs

Congressman Ciro Rodriguez

The workshop, held Friday October 30th 2009,  was a great success.  Over 25 attendees gathered in the San Antonio Central Library Auditorium for TATOA’s Workshop on the  Broadband Technology Opportunities Program (BTOP) and Energy Efficiency and Conservation Block Grants (EECBG).

Congressman Ciro Rodriguez surprised us with his personal visit – he opened the workshop by addressing the audience.  Joanne Hovis received high marks on her presentation about the BTOP program based on the number of questions and comments during breaks.

The information on energy conservation and funding programs provided by Lisa Elledge from the State Energy Conservation Office and Paul Smolen was well received and very informative.  Finally, the venue was perfect for the gathering.  Thanks again to Fox, Smolen & Associates for sponsoring the event!

Joanne Hovis

Click Here for Agenda

Click Here for Presentations

SPONSORS:
Office of Congressman Ciro Rodriguez, Texas Association of Telecommunications Officers and Advisors (TATOA), and Fox, Smolen & Associates

Hosted by The City of San Antonio, Texas

Unable to attend the TATOA conference this year? Get a copy of all available conference materials today for just $25, while supplies last! The book itself is just under 250 pages, plus you get copies of materials provided by speakers at the conference!

Purchase Conference Materials:

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