NTCA Favors Lower Fees, Shot Clocks and Other Reforms to Broadband Permitting

Claiming that regulations are increasingly interfering with broadband construction projects, NTCA – The Rural Broadband Association is backing federal preemption of state and local governments’ permitting rules. The association’s comments were in response to a Notice of Inquiry the FCC adopted in September.

“NTCA members increasingly face challenges in obtaining timely and cost-effective access to state and local government-controlled rights-of-way [RoWs] for the purpose of installing wireline infrastructure,” NTCA said in comments earlier this week. “Fees for RoW access can be excessive, and delays of up to a year or more [rivaling or at times exceeding delays experienced on the federal level] in obtaining final RoW authorizations/permits to access a public RoW are increasingly common as well.”

The NOI seeks comment on the FCC’s authority under Section 253 of the Communications Act to preempt state and local regulations that “have the effect of prohibiting the ability of any entity to provide any interstate or intrastate telecommunications service.” NTCA asked the Commission to preempt rules that charged fees for public RoWs that are not “cost based.” The association claimed that some local governments charge significantly more than the reasonable cost of facilities deployment.

NTCA also asked for preemption of rules requiring “in-kind” payments for construction authorization. For example, it pointed to one state that has required access to strands of fiber as a condition before construction. “In an upper Midwest state, a local government required the provider to replace street curbs in areas where network construction did not even take place,” NTCA said.

Unreasonable delays granting RoW authorization have in some cases crippled fiber projects because costs rose during the wait. NTCA called on the commission to put a 90-day “shot clock” on state and local governments, starting on the day the regulatory body receives the application for RoW.

NRTC member Midwest Energy Cooperative (MEC) operates broadband fiber facilities in Michigan and won support through the FCC’s Rural Digital Opportunity Fund (RDOF) program to build some of those facilities. In its comments, it claims that delays created by regulators have hindered its ability to meet construction deadlines in the RDOF rules.

MEC claims that it has filed 45 applications in Monroe County, MI, in 2025, and will eventually have to file a total of 104 applications before it can complete its project to build 68 miles of fiber. “As of the date of this filing, approximately 40 percent of the 45 submitted applications have been approved, and 36 have required revisions,” it said. MEC will have to undergo the same slow process in preparation for more construction several more miles in the county next year.

Part of the problem is that MEC must file applications with multiple agencies within the county government and that those agencies lack resources to review applications rapidly. “For example, because of staffing shortages, each Monroe County agency will allow only two permit applications from MEC to be pending at the same time,” the cooperative said. MEC asked the FCC to establish time limits on application review “and to bar state or local agencies from unreasonably limiting the number of permitting applications that can be pending at any one time.”

As the stakeholders discuss the issues in the NOI, Congress is considering several bills to streamline the permitting process for wireline networks. The House Subcommittee on Communications and Technology passed a long list of proposals on Nov. 18.

“This package of common-sense permitting reforms will help unleash additional broadband infrastructure builds in communities all across the country,” FCC Chairman Brendan Carr said in a statement. “This will not only ensure that more families have access to high-speed connectivity, but it will drive down the prices for broadband services by cutting out excessive costs. Getting this done will be a great win for the country.”