By Drew FitzGerald
Residents of Denver's Riviera apartments were surprised earlier
this year when a roughly 30-foot-tall green pole appeared a few
feet in front of their building entrance. The pole, installed by
Verizon Communications Inc. and laden with cellular antennas, was
designed to improve cellphone service in the area, but the
residents complained about the placement.
Months later, it was gone. But that was just a small taste of
what's to come across the country: Millions of Americans will soon
encounter similar poles or notice antennas sprouting on existing
structures, like utility poles, street lamps and traffic lights,
all over their neighborhoods. All four national cellphone companies
are pushing to build out their networks with a profusion of small,
local cells to keep their data-hungry customers satisfied and lay
the groundwork for fifth-generation, or 5G, service.
Those plans face pushback in many places, and not just from
residents. Officials in some cities say they don't have enough
staff to process applications for dozens or even hundreds of new
installations. In some smaller towns, officials say they lack the
expertise to review the new technology, though they're working fast
to get up to speed.
In Wilton Manors, Fla., Mayor Gary Resnick says the Miami suburb
needs more time to draft an ordinance to govern the installation of
the new technology. And there are seasonal issues. "We generally
restrict construction in the rights of way during hurricane season
for obvious reasons," he says.
Just around the corner
More than 100,000 small cells are already wired up across the
U.S., according to industry research firm S&P Global. Cellphone
companies plan to boost their capacity with several hundred
thousand more cells to improve existing service and prepare for 5G
service, which they see as a potential competitor for cable and
fiber optics, among other things.
Some of the local resistance is rooted in how small cells work.
Companies can usually find space on private property for large cell
towers with a range of several miles. Small cells reach only a few
hundred feet, so carriers need many more sites, usually on public
land, for the system to work.
Cellphone companies don't have much choice if they want to keep
up with their customers' appetite for data, says Jonathan
Adelstein, chief executive of the Wireless Infrastructure
Association, whose members include wireless carriers. "People
wonder why they might be having a dropped call or slow video," Mr.
Adelstein says. "Then they have a vocal minority that are ruining
it for everybody" by opposing the expansion of cellular
networks.
Denver resident Brad Cameron says a new two-story pole that
sprang up near his condo last winter "clearly has improved my cell
service." But he wants to keep new poles to a minimum by making
cellphone companies share space on the same structures. "The
concern I've got is that instead of trees, we're looking at a
forest of small cell towers," he says.
Denver City Council member Wayne New says the government is
encouraging carriers to cooperate with the local electric utility
to use more existing street poles.
Policy battles
State and federal policy makers are mostly backing the wireless
carriers. Federal Communications Commission rules passed in March
exempt small-cell deployments from certain historic-preservation
and environmental reviews. Another FCC rule slated for a vote this
month seeks to lower local fees and would set 60-day or 90-day
limits for local governments act on permit applications. A bill in
Congress would deem small-cell applications granted if local
governments fail to act on a request within 31 days. Dozens of
state laws also restrict local governments' control over small-cell
projects.
"It's all gamesmanship right now," says Angela Stacy, vice
president at consultant SmartWorks Partners LLC, who advises local
governments on telecommunications policy. "The carriers have
basically launched a three-pronged attack" with the support of
regulators and federal and state legislators.
Officials in San Jose, Calif., have tried to parry that
offensive by fast-tracking installations for carriers that have
agreed to help fund a local internet-access initiative. The Silicon
Valley city has licensed space on light poles for a few hundred
dollars per installation, using the money to connect low-income
residents to high-speed broadband at home. AT&T and Verizon
have signed on to the plan and are gearing up to install
equipment.
"We tried to prove to the telecom industry that cities are not
the problem," San Jose Mayor Sam Liccardo says. "We appreciate the
industry's position that too much red tape can get in the way."
At the same time, though, Mr. Liccardo says the city and its
allies are "battling the industry mightily" on the federal and
state level, lobbying to block policies they consider a handout to
cellphone companies because they would limit the fees the carriers
can be charged to install and operate small cells.
"These poles are increasingly becoming valuable real estate," he
says. "If cities can't manage their own infrastructure -- that
their taxpayers paid to install -- it puts them at a considerable
disadvantage."
AT&T strategic-planning executive Jason Porter says cities'
needs vary but the company's experience with San Jose is a
"win-win."
"Every concern that a city manager has is a viable concern," Mr.
Porter says. "San Jose's a good example of a location that we've
been able to work with."
Making adjustments
Other local officials say the installations could widen the
digital divide between well-connected residents and those with
limited service. In Maryland's Montgomery County, which covers
rural communities and several suburbs of Washington, D.C., county
planners are working on a fee structure for small cells. They want
rental rates to vary depending on population density to encourage
more rural deployment.
But in general, such fees take away from construction that
ultimately benefits the public, says Rudy Reyes, a vice president
of public policy for Verizon. "Capital budgets are limited, and we
would rather use that money to invest in infrastructure and
investment for our customers," he says.
Construction isn't slowing down in Denver, home of the
since-removed pole in front of the Riviera apartments. The city now
has nearly 100 small cells, with more than 250 additional
installations planned. But the local government has set new
guidelines to control where companies place their small cells,
which prompted Verizon to take down a handful that it had already
installed.
"They were willing to adjust to be good neighbors," says Jon
Reynolds, a program manager for Denver's public-works
department.
Verizon's Mr. Reyes says Denver has been an overall success so
far. "We try to work with these residents to address legitimate
concerns," he says.
Mr. FitzGerald is a reporter for The Wall Street Journal in
Washington. Email him at andrew.fitzgerald@wsj.com.
(END) Dow Jones Newswires
September 11, 2018 15:12 ET (19:12 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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