Fort Worth Star-Telegram

Texas Cities Team Up to Sue State over Telecommunications Fee Cuts

Telecom providers expect to save millions of dollars thanks to a new Texas state law that cuts fees. But a coalition of nearly 50 TX cities, who will be on the losing end of that revenue, worry those discounts won’t be passed on to their residents. So they’re suing. For years, telecom providers paid two separate fees to run cable and phone lines through city-owned strips of land, know as rights-of-way. Companies were required to pay both fees, even if it took only one line to deliver the two services.

Texas Telecom Law Sets Up Legal Showdown for Cities, State

Cities across Texas stand to lose millions of dollars due to a new law that slashes fees telecom providers pay to them. But before the savings go into effect in 2020, it’s likely cities will challenge the legislation in the courts. The bill would slash right-of-way fees telecom providers pay cities to supply cable and phone service.