ACA: New Regs Could Push Fees Up 400% for Rural Operators

By Mike Farrell -- Multichannel News, 8/23/2010 12:01:00 AM

WASHINGTON, D.C. — The American Cable Association warned last week that untethered pole attachment rates could drive the cost of broadband beyond the reach of rural customers.

In comments to the FCC, the ACA, which represents about 900 mostly rural cable operators, applauded the FCCs’ efforts to promote broadband deployment through revised pole attachment regulations. But the organization said that new proposed pole attachment formulas could increase fees five-fold for some operators, which in turn would cause consumer broadband rates to rise.

“An increase in pole fees will have a financially punishing and disproportionate impact on rural broadband providers, which rely on poles far more than urban providers and have fewer subscribers to absorb the impact of rising fees,” ACA CEO Matt Polka said in a statement.

Under a 1978 federal law, cable operators have a right to attach their wires to utility poles at regulated rates that fully compensate pole owners. Recently, pole owners have pushed for cable operators to pay a higher rate — previously applied to telecom companies — if they provide non-cable services. ACA claims that applying that higher rate would boost fees paid by some of its members as high as 400%.