Technological
and marketplace convergence makes it increasingly difficult for large,
integrated firms, like AT&T, to maintain a single, consistent position on
legal and regulatory issues. This results
in rich, irony.
Consider
AT&T’s recent Kentucky law suit to prevent Google Fiber from using federal
pole attachment law to secure access to AT&T-owned telephone poles, at
relatively attractive rates, using a congressionally created formula. See, e.g., http://www.bizjournals.com/louisville/news/2016/05/25/where-at-ts-lawsuit-against-the-citystands.html.
This
litigation reeks of irony, because AT&T, in its capacity as an Internet Service
Provider, would qualify under federal law to attach lines to poles owned by
electric, telephone and cable television companies. Federal pole attachment law prevents companies
from refusing to provide pole access, or to allow access, but only at
extortionate rates. AT&T surely would
benefit in cities where it does not own telephone poles and needs to install
lines using the poles of another, potentially competing company. But of course AT&T does not make it a
practice of trying to compete in localities where it does not also happen to owe
telephone poles.
Adding
to the irony—make that disingenuousness and other D words—is AT&T’s
consistent legal and regulatory position on state and municipal laws and ordinances
affecting access to cellphone towers.
When it comes to that technology, which AT&T considers a functional
equivalent and competing option, the company vigorously asserts that federal
law preempts state and municipal laws.
Clearly
both wireline and wireless access to the Internet qualifies as interstate
telecommunications. A long body of case
precedent supports a “contamination” standard that favors federal preemption,
and in turn FCC jurisdiction, whenever a line carriers both interstate and intrastate
traffic that cannot be separated.
AT&T regularly seeks federal preemption of state and municipal laws
that impose any sort of cost, delay, environmental impact assessment, etc.
Federal preemption renders the state and municipal law invalid and inapplicable.
The
FCC recently failed to convince an appellate federal court that the Commission
should be able to preempt any and all state laws that limit or prohibit municipalities
from offering Wi-Fi service. See http://docs.techfreedom.org/Tennessee_v_FCC.pdf.
This means there are some
instances where federalism prevails, i.e., the national legislature did not
clearly and unconditionally prevent states from enacting laws and some argument
can be made that the law does not affect interstate commerce. But when it comes to still lawful state and municipal
laws affecting tower locations, etc. AT&T speaks clearly and
unconditionally: that federal law severely restricts what states and
municipalities can do, despite the intense local nature of tower siting issues.
Ironically,
AT&T’s absolute certainty that federal law trumps states and cities in
terms of wireless Internet access, does not extend to functionally equivalent
wireline Internet access. This has
nothing to do with respecting the “Rule of Law” and everything to do with stifling
Goggle and the innovation and price competition it would offer.
The
same conclusion applies to those incumbent carriers opposing municipal Wi-Fi
networks and coverage expansion. These
carriers invoke law to short-circuit competition, but in other forums invoke
the same laws, policies and precedent to justify their lawful right to ignore
state and municipal law. Consider this
strategy rent seeking and not some lofty respect for the Constitution.