Access to Rights-of-Way

There is an interesting docket at the Federal Communications Commission that is examining the ability of a city to sign an exclusive agreement with an internet service provider that keeps other new ISPs out of the market. The case involves Cottage Grove (MN), a suburb of St. Paul with a population of around 43,000. The City of Cottage Grove signed an agreement with Gateway Fiber to build fiber throughout the city. The City’s agreement with Gateway provides a three-year period during which the City would not issue new permits to any other fiber builders in some parts of the city, and five-years elsewhere. An ISP, Intrepid(2), filed a petition with the Federal Communications Commission asking the agency to overturn that City’s action. My first reaction was that the FCC would probably rule in favor of Intrepid(2), but it turns out that laws in this area are more nuanced than I understood. The City has several issues in its favor. It didn't want to inconvenience citizens by having multiple companies constructing networks on the same streets. The restriction is also temporary, for up to five years in parts of the city. The City also doesn’t have an absolute prohibition against other fiber builders and will consider applications for right-of-way.