What is Rights-of-Way?
Rights-of-way are a scarce and valuable resource that local governments manage in trust for their constituents. Federal law must not limit a local government's:

  • Authority to manage the use and occupation of the rights-of-way; or
  • Ability to charge fair compensation for the use of these public assets.

Existing Law and Challenges
In Section 253(c) of the Telecommunications Act, Congress made clear its intent not to jeopardize local governments' authority "to manage the public rights of way or to require fair and reasonable compensation" for their use. Despite the clear intent of the Congress, the industry, the FCC and some courts have challenged local governments' authority over their rights-of-way.

TeleCommUnity's Recommendations
Congress could restore local governments' rights-of -way rights by:

  • Clarifying that Section 253(c) of the Act is not limited to fair and reasonable compensation to the recover of costs, but can also include a fair market rental fee.
  • Permitting states and local government to take a fresh look at statewide access grants to rights-of-way bestowed in an era of monopoly regulation.
  • Clarifying that a cable modem service is a service subject to Title VI of the Act.

 

For More Information

Property Rights, Federalism the Public Rights-of-Way
Frederick E. Elrod III & Nicholas P. Miller
Seattle Law Article
April 14, 2004

Improving Rights-of-Way Management Across Federal Lands: A Roadmap for Greater Broadband Deployment
National Telecommunications and Information Administration
May 2004

Analysis of Nixon v. Missouri:
Supreme Court Decision Will Embolden Industry Efforts to Seek State Legislation to Ban or Severly Limit Municipal Provisioning of Telecommunications
TeleCommUnity, April 6, 2004
HTML

A Narrative Walk through the Legislative History of Section 253
TeleCommUnity, October 2002
HTML | PDF

Myth Busters: the truth about rights-of-way management and compensation
TeleCommUnity, October 2002
HTML | PDF

The Case for Rights-of-Way Management:
A collection of illustrative incidents arising from street cuts
TeleCommUnity, October 2002
HTML | PDF

Valuation of the Public Rights-of-Way Asset
TeleCommUnity, March 2002
HTML | Word | PDF

Rights of Way Management
American Public Works Association, October 2001
PDF

Latest News on
Rights of Way

NTIA Releases
Rights-of-Way Study

The National Telecommunications and Information Administration has released "Improving Rights-of-Way Management Across Federal Lands: A Roadmap for Greater Broadband Deployment." The executive summary appears at first glance to embrace the conclusions of the President's Council of Advisors on Science and Technology (PCAST) regarding recovery of costs. PCAST highlighted rights-of-way management as a critical component of broadband deployment, saying the administration should ensure that rights-of-way issues "are dealt with in a balanced manner that facilitates prompt access for broadband networks while preserving legitimate government interests to protect public health, safety and welfare, and ensuring that government entities are fairly compensated for the costs of managing their rights-of-way and that disruption of rights-of-way is minimal."
NTIA report, May 7, 2004

White House Issues Broadband Rights-of-Way Memorandum: Improving Rights-of-Way Management Across Federal Lands to Spur Greater Broadband Deployment
April 26, 2004

Judge Gives Sprint Right To Sue County

Municipalities have suffered a blow in their fight to control or limit wireless service distribution and tower placements in their communities. In a published opinion, a district judge in southern California held recently that carriers have the right to sue and seek damages from counties that are trying to prohibit service rollouts. Judge Judith Keep ruled that, in the case involving Sprint and the county of San Diego, Sprint has the right to sue the county and can move ahead with its suit that alleges violations of the federal Civil Rights Act. The county argued that Sprint had no right to sue because wireless carriers were not protected under the 47 U.S.C Section 253 of the Telecommunications Act, which prohibits states or local bodies from prohibiting a telecom company from delivering services to a community. Wireless Week, April 20, 2004

Supreme Court Deals Blow to Municipal Telecom Services
The U.S. Supreme Court has dealt a blow to municipalities offering telecom services by leaving the door open for state law to prohibit the practice. The case decided March 24 questions the validity of a 1997 Missouri state law that forbids municipalities from providing telecommunications services. On behalf of the state's 63 municipal electric utilities, the Missouri Municipal League asked the FCC to intervene and declare the statute unlawful in light of the Telecom Act of 1996, which states that no state or local government "may prohibit … the ability of any entity to provide any interstate or intrastate telecommunications service." Much of the Missouri case centers around whether the phrase "any entity" includes municipalities, given the natural advantage cities could enjoy (regarding taxes, etc.) while competing with private telecom firms and the precedent it could set in allowing the FCC to interfere with a state’s sovereignty. Supreme Court Justice John Paul Stevens argued that "any entity" included cities because the Telecom Act clearly included utility companies, and many utility companies are owned by municipalities, a fact that Congress was probably aware of when it passed the act. — Telephony Online, March 24, 2004