By Ron Thaniel
May 10, 2004

Conference of Mayors Transportation and Communications Committee Vice Chair Dearborn Mayor Michael A. Guido defended local government taxing and management authority of telecommunications and cable infrastructure in public right-of-way before an audience of industry stakeholders during the National Cable and Telecommunications Association (NCTA) "National Show" held in New Orleans May 3.

Joining Guido on "The State and Local Connection: Working With Regulators to Connect America" panel was Bluffton (IN) Mayor Ted Ellis, Nebraska Public Service Commissioner Anne Boyle, Florida Public Service Commissioner Charles Davidson, California Public Utility Commissioner Susan Kennedy, Washington Utilities and Transportation Commissioner Marilyn Showalter, and The National Association of Telecommunications Officers and Advisors (NATOA) President Coralie Wilson.

Carrington F. Phillip, Vice President, Regulatory Affairs, Cox Communications moderated the panel.

Guido told the audience that cities welcome the idea of IP-enabled services and noted that, "IP-enabled services as with other modes of communication are an economic development tool strengthening metropolitan economies and, in turn, the nation's economy."

"IP-enabled services travel over wired or wireless telecommunications networks that are in existing public right-of-way and should be subject to local taxing authority," said Guido.

Guido said, "Mayors recognize the significance of ensuring that all citizens have reasonable access to these technologies, regardless of their income," and noted that the United States Conference of Mayors supports the expansion of the Universal Service Fund to include all advanced telecommunications services.

Regarding the Federal Communications Commission's (FCC) declaratory ruling that cable modem service is an information service and the 9th Circuit Court of Appeals decision that cable modem instead had separate "telecommunications service" and "information service" components (although that decision has been stayed pending further appeal), Guido said, "The position of local government remains and that is that cable modem is a -cable service- and subject to the five percent cable franchise fee collected by local government for use of public right-of-way."

Guido urged the FCC, Congress, and the cable and telecommunications industry to respect local government's right to manage local infrastructure in an effective manner, underscoring that local taxpayers not be required to financially support the telecommunications industry by being denied the ability to recover the expenses associated with access to the right-of-ways and to a fair and reasonable rent.