BBK’s Tillman Lay Quoted in Law360 on “Subsidized” Right of Way Access for Broadband
Article discusses a think tank’s take on the “mixed use rule” limiting local franchising authorities’ ability to regulate only cable services over cable networks, not broadband
On October 22, 2024, Best Best & Krieger LLP (BBK) Partner Tillman Lay was quoted in Law360 regarding a letter to the FCC written by the Free State Foundation, a free market think tank, which calls new franchise fees for broadband providers’ right-of-way use “a bad idea that would drive up consumer costs and hinder the growth of connectivity.” As consumers increasingly choose broadband over traditional cable, the issue at hand is the “mixed-use” rule limiting franchising authorities’ ability to regulate “only cable services over cable networks and excludes broadband services.”
Lay took issue with the letter noting, “…to be clear, the author is advocating an immense wealth transfer from state and local taxpayers to industry shareholders,” and that such “subsidized” right-of-way access “…comes with no obligation to use any ROW fee savings on lower broadband prices or on deployment.” Lay also rejected the notion that cities are primarily concerned with collecting revenue through fees on the use of public property. “That is not the case,” he said. “They seek to meet constituent desires for choice of providers and the professional management of the rights-of-way.”
The article is available online.
