FCC Votes to Harmonize Pole-Attachment Rates

The Federal Communications Commission has agreed to a cable operator/telecommunication joint petition to modify the cost-allocation model for pole attachments to ensure that the reclassification of Internet service providers as telecommunication does not result in higher attachment fees for cable ops. In the process, it effectively lowered the rate for telecoms, so both sides were celebrating.

The FCC has for several years been taking steps to lower those costs and speed approvals to encourage broadband buildouts, which is one of the FCC's prime directives. The National Cable & Telecommunications Association (NCTA) and COMPTEL sought clarification of the rates and proposed an approach to regularize them, which the FCC accepted and will employ. It essentially brings the telecom rate down to approximately that of the cable rate, or about 7.4% of the annual cost of a pole. Not surprisingly, utility companies were not clamoring to be paid a lower rate.