NextG Right Of Way Use Agreement

[johnfisher]

On January 26, 2009 the Radnor BOC voted 3:2 in favor of entering into the NextG Right Of Way Use agreement.

This new micro-cell or mesh network technology requires multi-site installation. The systems are in two parts, the antenna which is a tubular structure that sits atop the utility pole and the transceiver equipment which mounts below - generally lower on the pole.

I voted against this agreement for the following reasons:

1) The board will be considering ROW applications from multiple carriers in the coming year, as many as 5. All carriers will seek to co-locate this equipment in many areas of the township. This means that virtually every telephone pole or utility pole that does not have high tension wires on top will be a possible site for these installations. This technology is new and I believe that our township has not invested enough time to understand the long term implications of having these micro-cell installations. For example, what if a carrier installs their network in Radnor and then due to economics they fail and become a defunct entity. Our township could become littered with equipment that is no longer in use. I did push for and we did receive a $10K bond that will cover the removal of the equipment, however, the cost to remove the equipment from 17 poles could easily exceed the bond value or the $588 per pole limit. In general, the cost to do work on a pole begins at about $1500 due to personnel, equipment and insurance costs.

2) The negotiated fee for the NextG ROW is fixed for 5 years at $250. The FCC requires that municipalities charge the same fee for all carriers as to not discriminate or favor one carrier over another. This fee may or may not be level with other contracts that our township has already in force or any that we negotiate in the future. By referring back to our RT Fee Schedule, we can ensure that all contracts would be at the same rate and we would have less complexity in negotiating, managing and tracking our fees for the many ROW contracts we maintain.

3) Our township has a published fee schedule that the Board of Commissioners approves each year. This fee schedule is subject to adjustment due to economic conditions such as personnel costs in our township. The fees are determined by management staff and approved by the BOC. So while the BOC can adjust the fee schedule higher, it will have no effect on this ROW use contract or any other for that matter. In principle, the board approves and makes public a fee schedule to put users on notice of the costs they will incur for services. By allowing the township (and its solicitor) to negotiate outside of this fee schedule is essentially bait and switch and can lead to either over charging certain carriers or not collecting enough revenue to offset the cost of providing our oversight.

4) The wireless utility companies would be willing to enter into a contract that refers to a fee schedule, especially if it meant that all carriers are being treated fairly and equally as required by federal law.