Untapped opportunity in the joint use challenge
Greg Bennett
Vice President of Consulting and Joint Use Services
LineSoft Corporation
1942 Musket Court
Stone Mountain, GA 30087
Telephone: (770) 493-6470
Fax: (770) 493-6470
E-mail: gbennett@linesoft.com
The stage
An Historical Perspective
Not too long ago, power poles had one purpose-to support the lines and equipment
necessary to ensure the reliable flow of electricity to homes and businesses. The desire to
"attach" to a pole usually referred to a campaign sign or garage sale flyer. While there was
an occasional request from the local cable TV company, these demands were fairly easy to
manage-or ignore-with little consequence.
This all changed with the passage of the Telecommunications Act of 1996. The regulations
that have altered the way utilities address pole attachment requests are straightforward:
SEC.224 [47 U.S.C. 224]
(f) (1) A utility shall provide a cable television system or any
telecommunications carrier with nondiscriminatory access to any pole, duct,
conduit or right-of-way owned or controlled by it.
(2) Notwithstanding paragraph (1), a utility providing electric service may
deny a cable television system or any telecommunications carrier access to its
poles, ducts, conduits, or rights-of-way, on a nondiscriminatory basis where
there is insufficient capacity and for reasons of safety, reliability, and generally
applicable engineering purposes.
The challenge for electric utilities expanded significantly with the explosive growth of
communications technologies and the Internet. The FCC later held that
"telecommunications carriers" included wireless companies such as cellular, mobile radio
and PCS. As such, they too were entitled to attach their equipment to electric utility poles.
Almost overnight, requests for joint-use attachment skyrocketed. In fact, at one electric
utility, such requests grew from 1,000 per year to as many as 2,000 per month.
In today's era of diminishing resources, it is a rare electric utility that has the necessary staff
to successfully manage the ongoing demands of joint use.
Striking a balance
The stakes are high for owners and applicants alike, and a thorough understanding of both sides
of the issue is important to successfully meet the joint use challenge.
The Applicants: A Shrinking Window of Financial Opportunity
In the wireless world, the competition is fierce and business pressures intense. The mantra
among these new players is "First to Market Owns the Market." From their perspective, if
they can't get their facilities in the air fast, they probably won't be around to reap the
benefits.
This new breed of business also has an historical bias against the traditional electric utility.
They may be suspicious of an owner's analysis and recommendations for an attachment
solution and any associated costs. Most of these organizations have based their business
plans on historical electric utility permitting procedures and have not factored in the
potential costs of preparing a pole to handle additional attachments - costs that must be
borne by the applicant. And after all, anything that takes time will slow down their entry
into the market and, subsequently, their potential to generate revenue.
The Owners: Maintaining the Integrity of the Infrastructure
In the past, attachment has been a relatively simple task for the electric utility - the volume
of work was low, the poles were relatively "clean" and responding to requests did not
require a significant investment of either time or money. But as the demand for attachment
increases, it is more difficult to manage the process using existing procedures.
Adding to the challenge, the fast pace of change makes it difficult to maintain an accurate
accounting of pole attachments. Without a clear picture of what is happening in the field, it
is very difficult to make intelligent decisions about what requests to grant and what
adjustments may be necessary to safely accommodate an applicant.
Ignoring or unjustifiably denying attachment requests is not an option. The FCC requires
that all requests be reviewed and addressed within 45 days. Noncompliance can result in
fines, but of even greater concern is the potential threat to public safety and subsequent
litigation risk that poorly managed attachments can pose. What's more, attachments can
potentially impair the electric utility's ability to deliver electricity, interrupting its revenue
stream, and subjecting it to potential regulatory action.
