The FCC should remove buildout requirements from the local franch...

The FCC should remove buildout requirements from the local franchise process as well as other provisions small and midsized telecom companies deem barriers to offering video services to customers, USTelecom said. In an ex parte filing Fri., USTelecom said the agency also should: (1) Prohibit “excessively long franchise application review and approval processes.” (2) Bar franchise fees and “in-kind payments that are not specifically authorized in the Communications Act and exceed the statutory maximum of 5%.” The comments went into MB Doc. 05-311, a proceeding in which the FCC is considering if there are barriers to competition in the franchise process that would violate Sec. 621 of the Communications Act. The statute “plainly limits” buildout requirements, even for incumbent cable operators, USTelecom said: “The timetable must be reasonable in light of market conditions, and a cable operator cannot be made to provide service where it is not economically feasible. With respect to competitive entrants, therefore, the best approach is to allow market competition to decide build-out schedules as this will establish reasonable build-out schedules more certainly and accurately than any regulator could do.” The FCC has “unquestionable authority” to adopt rules dealing with Sec. 621 franchising requirements, “despite the protestations of cable operators,” USTelecom said: “The Commission’s rulemaking authority is not affected by the fact that local franchise authorities have the primary role in applying, but not interpreting, the section.”