Google Fiber's Nashville proposal clears key vote

In the face of a legal threat and opposition from Nashville’s two largest internet providers, the Metro Council on Tuesday gave preliminary approval of legislation that Google Fiber says is critical for its broadband rollout into Nashville.

The council voted by a wide 32-7 margin to advance Google Fiber-backed legislation dubbed One Touch Make Ready that would change the city's policy regarding utility poles and help expedite Google Fiber's entry into the Nashville market. The vote was the second of three required to pass the ordinance. The council's action was a big win for Google Fiber and came after the council voted 20-19 to defeat an effort opposed by Google Fiber to delay consideration of the ordinance until December.

"This is an extremely big step forward, an extremely big net positive for Nashville, for internet competition," said Councilman Jeremy Elrod, one of the bill's co-sponsors. "It increases competition, increases telecom and internet investment for we as a city and our citizens as a whole."

At issue is a process of attaching new lines to utility poles. Google Fiber says the current system could be improved by allowing one contractor to move all lines at once to make a pole ready for a new provider. New companies must currently wait on each existing provider to move their lines, a process that can take a few months per line and that delays internet installation.

AT&T and Comcast have voiced strong opposition to the ordinance and have instead sought to shorten timelines and increase penalties for slow action, rather than allow a third-party vendor to touch their lines. Without using their own workers, they argue, the lines could be damaged and disrupt service. For AT&T, the ordinance would violate contracts with union workers, the company says. AT&T has filed a lawsuit in Louisville, Ky., to strike down a similar ordinance there.

Metro Law Director Jon Cooper on Tuesday told the council that litigation was certain, should the ordinance pass, based on conversations he has had with AT&T lawyers. AT&T Tennessee President Joelle Phillips has made clear that a lawsuit against Metro would be likely. 

"If this ordinance passes with the amendment that Google is in support of, we will be sued," Cooper said. "I'm 100 percent sure of that."

The vote followed a daylong negotiation session led by Mayor Megan Barry's administration two weeks ago between AT&T, Comcast and Google Fiber, held with Metro and Nashville Electric Service officials, that yielded no solution. During the meeting, Google pushed for compromising on the ordinance, while AT&T and Comcast sought to adjust the current process without legislation.

Barry has stayed neutral on the legislation.

Google Fiber, AT&T, Comcast fail to strike deal at meeting

Google Fiber officials praised the council's vote on the bill, which still needs another council vote Sept. 20 for final clearance. It would then go to Barry's desk for the mayor's signature.

"Improving the make-ready construction process is key to unlocking access to a faster Internet for Nashville, and this Ordinance will allow new entrants like Google Fiber to bring broadband to more Nashvillians efficiently, safely and quickly," Chris Levendos, Google Fiber director of deployment and operations, said in an emailed statement.

Comcast officials said they were disappointed in the vote and that the outcome is not in residents' best interest.

“This is simply not a place where a single one size fits all government mandate works for consumers or the companies involved," Sara Jo Walker, a Comcast spokeswoman, said in an emailed statement. "It sends an unfortunate message to both current and future businesses looking to invest in Nashville. Instead of the Council adopting One Touch, pole owners and attachers should agree upon standards and processes to collectively address issues."

Phillips reiterated AT&T's objections to the ordinance concerning union workers and said the company will seek an alternative solution before the Sept. 20 vote.

"As amended, the ordinance is at odds with our collective bargaining agreement with the (Communications Workers of America), our joint use contract with NES and even the contract we have with Google," Phillips said in a statement. "Those contracts relate to some of the most important parts of our business — our employees and our network. While we are disappointed with tonight’s outcome we will continue to advocate for a non-legislative solution ahead of the final vote.”

During a Metro committee meeting Tuesday afternoon, Councilman Bob Mendes pushed for another deferral of the ordinance, which would delay the measure to December. That would give the companies more time to develop a resolution and to gauge the lawsuit underway in Louisville. He said he was disappointed by Google's unwillingness to consider solutions discussed at the recent negotiations session.

"Google’s not going to be a party to the litigation; Metro is," Mendes said. "To refuse to even have a conversation about whether or not we could have an agreement is an issue.

"This isn't a delay forever," he added. "This is a delay until December. And it throws down the gauntlet for all parties to solve the problem."

The council's Budget and Finance Committee voted 7-5 to recommend the ordinance be delayed. The Public Works Committee voted 6-0 to recommend approval for the ordinance. The two committees collectively spent three hours debating the closely watched legislation.

Council members have been flooded with emails from Nashville residents in support of One Touch Make Ready, prompted by a mass email from Google Fiber’s Nashville director, Martha Ivester. In the message, sent Sept. 1, she encouraged residents to reach out to their council members to allow Google to “bring super fast Internet and choice.”

AT&T: Nashville should expect a lawsuit if Google Fiber bill passes

In the letter, she said Google needs to attach to more than 44,000 poles and 33 have been made ready. In an email to The Tennessean, Google said that of the 16,000 pole applications that have been approved by NES, 9,400 poles need lines moved.

"One thing that has been very clear as we've been working on this ... is that residents and businesses want faster internet sooner," said Councilman Anthony Davis, referencing the emails many council members received. "They want it right now, and they want meaningful choice in their providers. They want less construction and disruption affecting their neighborhoods."

Davis, sponsor of the ordinance, also sought to counter AT&T's argument that the ordinance would violate contracts with union workers — a major point of contention for many council members. Identifying himself as an "avid union supporter," he said union workers will benefit by the increased work brought to the area by increased competition.

"All in all, unions stand to gain a lot of work," Davis said.

But CWA representative Rick Feinstein said the ordinance would force contractors out of work.

"Those folks out there doing that work now will not be doing that work," he said. "This will cost jobs."

Reach Joey Garrison at 615-259-8236 and on Twitter @joeygarrison. Reach Jamie McGee at 615-259-8071 and on Twitter @JamieMcGee_.