5G future may hang on utility poles
Mobile carriers such as AT&T and Verizon are in a race to build brand-new data networks that can deliver ultrafast downloads and support a fresh generation of smart, internet-connected devices.
But a battle is brewing over how much the companies should pay for access to public utility poles and other rights-of-way, as federal regulators get ready to vote on the issue this week.
The proposal by the Federal Communications Commission would establish new limits on the use fees that cities and towns can charge wireless carriers as the companies set up their new, 5G data networks. And it would require local officials to make decisions more quickly on carriers’ permit applications.
As the successor to 4G LTE, 5G is expected to offer download speeds that rival or even exceed what many consumers receive on their home internet connections. And, its proponents say, it could help open the door to a range of other technologies that today’s data networks can’t support, such as self-driving cars.
Installing the necessary equipment on public poles requires getting clearance from cities and towns. And unlike traditional wireless cells, 5G cells will have a smaller footprint, meaning that many more of them — perhaps hundreds of thousands — will need to be installed in the coming years.
High local fees could add costs and slow the spread of those next-gen networks, according to FCC Chairman Ajit Pai.
“By updating our rules to make it easier to install wireless infrastructure, the Commission is taking another critical step to promote U.S. leadership in 5G wireless services,” Pai wrote in a blog post this month. The FCC proposal would prevent cities and towns from charging more than $270 a year per cell site.
Carriers currently pay, on average, upward of $500 per pole every year, according to an agency study.
A number of cities and towns, particularly in rural areas, have said they support the proposal because reducing the carriers’ costs in big cities could mean more money for building advanced networks in smaller ones. On Monday, Republican FCC Commissioner Brendan Carr released statements from more than a dozen state and local leaders endorsing the proposal.
Some cities have struck separate private agreements with wireless carriers to build out 5G cell sites. For example, officials from San Jose in June signed on to a $500 million deal with AT&T, Verizon and the privately held infrastructure company Mobilitie to build a mobile network.
The FCC proposal could have the unintended effect of slowing down 5G deployment by disrupting those types of existing deals, which were negotiated in a free-market environment free from federal intervention, San Jose officials wrote to the agency last week.
The FCC is expected to vote on the proposal today.