Preliminary Report 4252018 Ad Hoc Committee Members Andy Huckaba Chair City of Lenexa KS Scott Bergmann Vice Chair CTIA Richard Bennett Kara Graves CTIA Larry Hanson Georgia Municipal Association ID: 1033059
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1. BDAC Rates & Fees Ad Hoc CommitteePreliminary Report4/25/2018
2. Ad Hoc Committee MembersAndy Huckaba – Chair, City of Lenexa, KSScott Bergmann – Vice Chair, CTIARichard BennettKara Graves, CTIALarry Hanson, Georgia Municipal AssociationAngie Dickison, State of WisconsinKen Simon, Crown CastleMonica Gambino, Crown CastleAllen Bell, Georgia PowerJonathan Adelstein, WIASade Oshinubi, WIAShirley Bloomfield, NTCABrian Ford, NTCAClark Harris, T-MobileChristi Barnhart, CharterElizabeth Bowles, AristotleChristopher Yoo, University of PennsylvaniaPaul D’Ari - FCCBrian Hurley – FCCJaiming Shang - FCC
3. PrinciplesPurpose: Robust and affordable broadband should be available and accessible to all citizens, both urban and rural, throughout the United States.
4. PrinciplesTo promote broadband deployment, rights-of-way fees should meet the following principles:Fair partnershipFair and equitable for all parties to insure a lasting relationshipFuture proofAllow for growth and innovation while being sensitivity to community needsNondiscriminatoryNeutral treatment and access of all technologies and communication providers Public Rights-of-Way for the use and benefit of the greater communityDeployment and delivery of services for the greater goodSense of UrgencyTo Remove unfair or excessive rates and fees in order to provide all Americans access to BroadbandSimplicityClear and well-defined solutions that are not unnecessarily complex or time consumingTransparentClear visibility and understanding of all fees and rates
5. Key LearningsDefinitions of Methods (cost, market, revenue, hybrid, new methods, all-in rates)Exploration of PerspectivesSimplified CategorizationsEvent or One-time fees such as application and permit feesRental rates – reoccurring and pertaining to poles and structuresAccess rates – reoccurring and pertaining to access to the public right of way
6. Data AnalysisData CollectionData voluntarily submitted by BDAC participantsConvenience sample – not necessarily representative Data ObservationSufficient data on rates for pole attachments and right-of-way access1,204 cases for both wired (592) and wireless (612) pole attachmentsInsufficient data on rates for conduits and ducts for analysis
7. Data AnalysisWired vs. Wireless Pole Attachment Rates(Annual, $)MeanMedianStd. Dev.Wired Pole Attachments (n = 577)17.5815.5612.47Wireless Pole Attachments (n = 402)505.5656.60939.30Regulated vs. Unregulated Pole Attachment Rates Wireless Right of Way (ROW) Rate Statistics (Annual, $)MeanMedianStd. Dev.Wired AttachmentRegulated (n = 254)13.979.9012.07Unregulated (n = 228)21.8620.0113.04Wireless AttachmentRegulated (n = 255)224.2550.00505.51Unregulated (n = 147)993.55360.001,265.19(Annual, $)MeanMedianStd. Dev.IOU’s (n = 19)404.30100.00503.25Municipalities (n = 36)592.36300.00729.41
8. Data AnalysisPole attachment rates based on revenue sharingTypically charged 3% ‑ 5% of revenue and/or annual fees of $60 ‑ $6,000 ROW or attachment feeStatewide pole attachment rates set by state legislationThirteen states have adopted statewide regulation Statutes limit ROW and attachment fees to direct cost or cap the fees at $50 - $250
9. Moving ForwardComplete methods analysisIdentify and analyze new methodsFine-tune dataDevelop guidance for BDAC from the dataEstablish a set of recommendations for the BDAC to accelerate the deployment of broadbandTiming??