Regulatory Costs of Fiber Construction

At the federal level there has been an ongoing battle over the level of federal regulations. The Ajit Pai FCC strove to eliminate almost all broadband regulations that were not specifically mandated by Congress. Pai referred to his concept as light touch regulation. The FCC before and after Ajit Pai believe that there needs to be some regulations in place to protect the general public.

However, there are a lot of regulations other than the ones created by or enforced by the FCC. Anybody who builds fiber networks can describe the litany of state and local regulations involved in constructing fiber. Following are the primary kinds of such regulations – and there are others in some places.

  • National and State Codes. Fiber builders must meet various national and state codes related to electricity, safety, and specific fiber specifications.
  • Safety. Work sites must comply with safety standards set by OSHA and States.
  • Permits. Most jurisdictions have a formal permitting process. This is where a contractor will specify the planned construction of the network.
  • Rights-of-way. Federal rules allow fiber to be constructed in any existing public right-of-way. However, many local jurisdictions require a fiber builder to pay fees and obtain a right-of-way agreement before undertaking construction.
  • Easements. Contractors are required to acquire an easement from private landowners, which is permission to construct on private land.
  • Financial Requirements. Some jurisdictions require that an entity that wants to cut into a street to satisfy specific financial requirements. This might mean obtaining a bond or providing a deposit before construction. There might be requirements for contractors to carry specific amounts of insurance and name the government entity as a covered entity under the policy. Some jurisdictions treat a fiber network like other infrastructure and charge property or related taxes on the asset.
  • Business License / Franchise Agreements. Some jurisdictions require anybody that wants to operate a fiber network must obtain a business license. Communities often require a franchise agreement that lists the various construction parameters and details the fees associated with building and owning a fiber network.
  • Deployment Codes. A city might require fiber to be buried in some neighborhoods. It might require handholes instead of pedestals. It might require that huts go through the same permitting process as any other building. There may aesthetics requirements for huts and cabinets such as hiding infrastructure with shrubs.
  • Locating. It’s always mandated that existing underground utilities are located before doing any underground work.
  • Public Notification. Many communities require a contractor to notify the public before construction. This might include a requirement to knock on doors and leave notices.
  • Traffic Control. Many communities require flag people or other ways to manage traffic during times when construction will block traffic lanes.
  • Site Requirements. There are often specific rules about what must be done at any site when a street is excavated. This might mean taking measures to control dirt runoff if it rains. It might mean covering construction holes for safety purposes.
  • Restoration. Most communities expect any entity that excavates in a right-of-way to restore the area as nearly as possible to the conditions before the construction.
  • Inspection. There can be government inspections required at any step of the construction process. Inspectors typically have the ability to shut down a construction site that is not meeting the expected codes and standards.
  • Mapping. Many jurisdictions require drawings or electronic files showing completed construction.
  • Licenses. Operators of heavy machinery may be required to have specific licenses and certifications. Engineers that design a fiber project might be required to be licensed by the state.
  • Environmental Studies. Local, state, or federal rules might require an environmental study when constructing in sensitive areas. The studies might look at the likely impact on endangered species or the impact of construction on sensitive waterways.
  • Cultural Review. A cultural review might be mandated if construction is to be done in areas with burial grounds, archeological sites, or fossil beds.
  • Historic Site Review. There can be a review required if construction is to be done close to a designated historical site.

One thought on “Regulatory Costs of Fiber Construction

  1. Places which are very old settlements, like Santa Fe, NM, also have archeological review which is a gigantic pita. There have been some rumors of scandals with large ISPs said to go the “beg forgiveness” route.

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