Federal legislative and regulatory efforts could undermine what Laredo is entitled to receive in the form of compensation for the use of its rights-of-way by communications providers and the citing of cell towers.

Cable Franchising
While in September of 2005, Texas law preempted local government franchising of cable television services when the Texas legislature recently passed SB 5 establishing a statewide franchising process in Texas, the ability of the City to collect fees based on the use of its rights-of-way were preserved. The U.S. House has passed legislation (H.R. 5252) that would preempt SB 5 and create a national franchise system that would jeopardize some of the benefits Texas communities are afforded under SB 5. There is also legislation pending in the U.S. Senate. It is not clear that the Senate will complete work on a national franchise process, but with passage of H.R. 5252, the pressure to do so will be increased. There have been multiple bills that have been introduced to alter the franchising process; and additionally, the FCC has an open docket to address whether IPTV services are cable service subject to a cable franchise.

Cell Tower Citing
Efforts to limit local zoning authority over cell towers have not achieved traction in the U.S. Congress to date, but the industry has established limiting local zoning authority as a legislative priority.

In updating the Communications Act, Congress could preempt consumer protections and local government oversight of critical communications technologies before genuine competition for communications services exists. Congress will likely attempt to create regulatory parity (i.e., common rules) for communications companies such as cable and telephone companies that with convergence of technologies will be able to offer similar services (voice, video and data). Based on this ability to compete against one another or convergence, communications companies will argue for full deregulation and the preemption of traditional state and local authority, irrespective of whether genuine competition within individual markets exists. This may subject consumers to the abuses of a monopoly or a duopoly communications market in many communities.

Furthermore, the economic survival of Laredo and other America’s local communities depends on the widespread and rapid deployment of affordable broadband infrastructures. Legislation that hinders Laredo’s ability to enhance its economic viability must be opposed.

While Laredo was not supportive of SB 5, the Texas legislation, which provided a statewide franchise for cable services, its terms must serve as a floor for any federal legislation considered.

Oppose any federal communications legislation or regulatory efforts that provide Laredo any reductions in the City’s:

• Compensation for use of the City’s rights-of-way than the industry agreed to in SB5; and
• Authority to zone cell towers; and
• Management of Laredo’s rights-of-way; and
• Ability to collect sales taxes and the Texas municipal line charge from any communications provider.

The city could lose up to 30% of its franchise fees and lose use of its Institutional Network.

 

• Federal Communications Commission