Regulatory Costs of Fiber Construction

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There are a lot of regulations other than the ones created by or enforced by the Federal Communications Council. Anybody who builds fiber networks can describe the litany of state and local regulations involved in constructing fiber. Following are some of 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.

Regulatory Costs of Fiber Construction