Pew has released a study looking at the deep complexities surrounding pole line attachment as ambitious projects such as the Capital Projects Fund (CPF) and the Broadband Equity, Access and Deployment (BEAD) Program roll out.
Approvals for pole attachment permits can take months or even years, the report says. The timeline can be extended by the cost of the permit and condition of the pole itself. This can lead to problems with meeting schedules mandated in grants.
Pole attachments are complicated. The process involves the owners — generally broadband or electric companies or local governments that give providers (known as “attachers”) rights to attach wires carrying broadband to the poles. It’s a multistep process that varies by state and the type of pole owner, the report says.
There are two administrative regimes at the state level. The report says that as of last year, 23 states and Washington, DC manage the process themselves. These are known as “reverse preemption” states. The remainder defer to the FCC’s process.
The key challenge is working through the process in a timely manner. “Among states’ most serious concerns about the pole attachment process is that delays could prevent states from satisfying the federal programs’ timeline requirements.” according to the report.
“BEAD gives states 365 days to select projects that can reach every unserved location within their state and another four years to complete construction. And under CPF, states have until the end of 2026 to complete construction on all funded projects.”
This can put localities into a bind. “Given these tight timelines, any cost increases incurred after all available funds have been allocated can leave states with little recourse to complete projects that require more funding.”
Pole attachment costs are an issue as well. Virginia Delegate Scott Wyatt is quoted in the report as saying initial contracts for projects in the state were $30,000 a mile. That, he said, has tripled to $90,000 a mile.
This is a very real problem. The study says that last April, a major broadband provider returned awards from the Rural Digital Opportunity Fund (RDOF) because it couldn’t provide services to thousands of locations across Michigan, Missouri, Oregon, and Wisconsin due to “unforeseeable costs, primarily costs associated with the need for extensive utility pole replacements.”
However, there is some good news on the BEAD front. “Fortunately for these and other states hoping to address pole attachment issues, BEAD funding can be used for certain permitting expenses.
BEAD requires grant applicants to provide a minimum of 25% of the project’s cost, and ISPs can opt to waive pole attachment costs as an in-kind match toward that obligation, which also reduces the capital those providers would need for their applications.”
The study offers several policy recommendations:
- Increase data collection and create centralized asset inventories
- Digitize permitting systems, build local capacity, and eliminate redundancies
- Standardize policies and create rapid-response teams to resolve disputes
- Leverage pole replacement programs and disaster mitigation funds
In December, the FCC adopted an order, declaratory ruling and notice of proposed rulemaking related to pole attachment processes for broadband deployment. The goal was to “allow for faster resolution of pole attachment disputes and provide pole attachers with more detailed information about the poles they plan to use as part of their broadband buildouts,” the FCC said.
Last November, the Texas Broadband Pole Replacement Program awarded Charter Communications and three cooperatives approximately $18.5 million in grant funding to partially reimburse them for pole replacement costs. The awards were to replace more than 11,000 poles that support retail broadband services that serve rural, unserved areas.
