Wireless Carrier Attempts Backdoor Land Grab

Our law firm recently dealt with an interesting issue: an attempted unpaid land grab by a carrier.  This is an issue that wireless site landlords should ALWAYS be on the lookout for when reviewing the plans for a proposed site modification.  This story deals with a proposed standby power generator.

In the matter we just resolved for our landlord client, the wireless carrier wanted to install a new propane gas powered standby power generator at its cell site on our client’s property.

Standby power generators provide electrical power during commercial power outages, thereby allowing the cell site to operate during a local power outage.

For the most part, that’s a good thing.

The carrier proposed that the 7,500 watt standby power generator; the 120 gallon propane tank; the power transfer switch, etc. all to be placed entirely within the existing leasehold area.

That’s a good thing, too.

When we reviewed the project plans for the landlord, we recommended the landlord DENY the request.  The landlord was surprised.  All of the proposed modifications were to be entirely within the leasehold area, so on what basis wound he deny the request, he wanted to know.

Well, it turns out that the carrier’s request to modify its site—entirely within its leasehold area, was an attempt to secure a defacto, covert unpaid expansion of the land on the landlord’s property to be controlled by the carrier.

And that’s not a good thing.

What the carrier outright failed to tell the landlord (and only provided a single oblique reference on one panel on a single page of the 11 pages of zoning plans) was that the location of the propane tank triggered a fire safety code ignition clearance zone of 5 feet in all directions around the tank.

To maintain the ignition clearance from all of the existing wireless equipment inside the leasehold, the carrier proposed to place the propane tank against the edge of the leasehold.  That meant that the 5 foot clearance zone around the tank would actually extend outside of the leasehold area, thereby restricting and controlling the landlord’s use of his own property.

Figure 1, below, contains a capture of the relevant portion of the plans as proposed by the carrier:

.

In the next graphic, Figure 2, I’ve animated the plans in Figure 1 to show exactly where the land grab would have occurred had we not detected it:

(Click on the image above to see it in full size and animation.)

Did the carrier, on its own, actually disclose these the relevant facts to the landlord other than via an oblique plan page reference? No.

Did the carrier, on its own, offer any additional rent to the landlord? No.

In the end, did the landlord, once alerted by us the unpleasant reality, agree to permit the defacto unpaid expansion? No.

Having being caught by us, the carrier redesigned the site to comply with the fire safety codes without trying to sneak in an unpaid leasehold expansion.

That’s a good thing, too.

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Mayor Sam Liccardo Resigns from FCCs Sham BDAC

Today, San José Mayor Sam Liccardo resigned from the FCC’s Broadband Deployment Advisory Committee (“BDAC”). This comes as no surprise to most of us in the local government sector, yet we’re sorry to see him leave.

When FCC Chairman Ajit Pai announced just one year ago his intention to form the BDAC as a vehicle for local governments and the wireless industry to work together to draft proposals for balanced local wireless deployment policies, we knew that the membership of the BDAC (hand selected by the Chairman) would tell the tale.

Unfortunately, the tale told by the Chairman’s lopsided selection for BDAC membership showed an industry-captured agency where the real intent was to top-load the Committee with industry players, while assigning a paltry-few membership slots to local government representatives.  More: See this link.

Mayor Liccardo took on one of the micro-minority slots doled out by the Chairman to local government representatives and he really attempted to make something of it.  For that, we applaud Mayor Liccardo, and hope the side of his head is not too dented.

Read his resignation letter, below.  You’ll get why we know that work product of the BDAC is most likely (say only 99.999999999999% likely) to be a sham…and a means and justification for the Commission to adopt new rules based on the sham work product of the captured agency.

jlk

 

FCC BDAC Resignation Letter of Mayor Sam Liccardo (San José, California). January 25, 2018.
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New Mobilitie Design: The ‘Fanny Pack’

Mobilitie, the purveyor for Sprint of such new but instant classic wireless designs as:

The “Speargun” Design * (see below)

and

The “Pox on a Pole” Design (this is the Walrus version) *

and

The “Stick it Up Your Pole” Design * # (see below)

…has (finally) come up with a fairly-decent site configuration.  I call the new design the “Fanny Pack.”  Here’s what it looks like, as recently deployed in the City of Los Angeles:

The “Fanny Pack” Design *

The RRU, UE (backhaul) Relay, the power distribution, and elements other than the downlink antenna are all located within the Fanny Pack.

I see the Fanny Pack design as Mobilitie’s best efforts to date to come with and deploy a closer-to-mainline wireless site that is far less awful that its prior outdoors site configurations.  There are some site deployment issues with the Fanny Pack design, but those issues are relatively easy to address.

We’ve seen plans for the same basic Fanny Pack design, but with the equipment enclosure on the back of the pole.  Needless to say, we’ll refer to that as the “Back Pack” when deployed.  Photos to follow after the first Back Pack goes up near us.

Keep up this better work, Mobilitie!

Jonathan

* Okay, as you should have guessed by now, these are my design names, not Mobilitie’s. Got it? Good!

# Ms. Shannon Nichols, a NCE Permitting Manager for Mobilitie in Southern California told me on 12/6/2017 that the wood pole configuration shown above, with its standoff bracket and equipment, was a design requirement of the City of Los Angeles.  She went on to say that Mobilitie would have preferred to have its equipment flush to the body of the pole.  Thanks for the clarification, Shannon.

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Most Favored Wireless Lessee Clause?

One of the big wireless carriers has added an interesting new ‘standard provision’ in its lease template.  It’s a clause that makes that particular lessee the ‘most favored lessee’ over the decades-long life of the agreement.

Some of you will recognize this type of contract provision as a Most Favored Nation (“MFN”) clause.

In the wireless leasing context, a wireless landlord granting this MFN might be called a “Most Flagrant Numskull.”

I’ll review the meat of the MFN clause. Then I’ll you how we’re handling this odious little clause for our wireless landlord clients.

Paraphrased, major elements of the MFN cause require the Lessor to guarantee to its wireless carrier tenant that if the Lessor does any subsequent lease deal…not just for wireless…with another entity at the same property — or even at an entirely different property anywhere in the world — then the wireless tenant gets to decide whether they want those same better deal points

The elements of the MFN include rent, contract benefits, as well as the terms and conditions for any deal the lessor does for identical or even similar land deals.  Essentially, every deal point comes into play. The MFN also requires that the landlord timely disclose every one of  those lease deals to the carrier, but the carrier reserves the right to reject any or all of the other terms if it doesn’t like them.

Oh, yes, through the MFN, the carrier reserves the right to independently dig into every deal the landlord does. Arguably, this means that any type of similar deal the landlord does anywhere else in the world has to given to the wireless tenant to pick and choose to see if they want also, some, or none of the terms retroactively.

Also, there’s no limit to the number of times or deals that the MFN can be used to favorably tweak its wireless lease.

What’s a landlord to do?

Well, there are two obvious answers to the MFN issue.

The answer I particularly like is to AGREE to the MFN clause and…

wait for it… wait for it…

…the landlord requires that the carrier mirror the MFN clause so that the wireless carrier has to give the very same bundle of rights to landlord. Yeah, like that’s going to fly with the carrier.

Okay, you can probably guess the better second answer: We recommend our clients strike the clause and tell the carrier to keep their hands inside their own ride at all times.

Do I chide the wireless companies for overreaching clauses like this?  Of course not.

The legal duty owned by management to its wireless company shareholders is to enrich the shareholders regardless of the legal and financial devastation they might do to the unknowing landlord.  There are no morals involved here. It’s simply the way of business.

It’s also why we enjoy working with wireless site landlords to point out the obvious and not-so-obvious legal landmines buried in wireless site leases.

Jonathan

(Base photo: By Reedhawk – Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=36811331)

 

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Sprint Uses My Photo of Mobilitie to Promote Small Cells

I guess Sprint really, really likes my cell site photo collection, and photos I use in my lectures.  So much, in fact, that they they included one of my annotated photos of a Mobilitie ‘pox-on-a-pole’ site in Los Angeles as a presentation tool in an Ex Parte meeting with 9 staff members at the FCC on October 23, 2017.  Here’s my annotated photo, used by Sprint in its Ex Parte presentation:


Did Sprint bother to ask me for permission to use my intellectual property in its Ex Parte presentation?

Of course not.

Does my annotated photograph above, used by Sprint without my permission, look like the type of cell you’d want in front of your residential balcony?

I suspect not.

Hey, Sprint (and specifically Keith Buell), the next time you’d like to use my intellectual property, please consider giving me a call first.

Here’s a link to Sprint’s Ex Parte 4-page filing containing MY photo: CLICK HERE.

jlk

 

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SB 649 VETOED BY GOV. BROWN!

Very late last night (October 15, 2017), Governor Jerry Brown VETOED Senate Bill 649 (Hueso).  Thank you Gov. Brown!

SB 649 was nothing more than an obscene transfer of wealth away from California citizens to wireless industry and cable TV industry shareholders by way of grossly reduced site rental fees, far below their fair market value.  A diversion of funds that currently goes to offset public safety costs like police and fire services.

The pig is dead!

What did the industry promise in SB 649 to do for the incredible gifts of public funds and public property?

Perhaps a duty to provide 5G services anywhere in California?  Nope, not in SB 649.

Perhaps a duty to provide 4G (or even 3G) services to under- and un-served areas of California? Nope, not in SB 649.

Maybe some duty to provide an earthquake early warning system, which the carriers told legislators could only be provided by 5G?  Nope, not in SB 649.

Maybe some duty to close the ever-widening digital divide in California?  Nope, not in SB 649.

Maybe a duty to provide a non-actionable report to the Legislature?  Yup.  This was the only actual duty on the industry in SB 649.  One that was truly meaningless in the grand scheme of things.

SB 649 was a multi-billion dollar sham almost perpetrated on Californians by Sen. Hueso and Asm. Quirk, the co-sponsors, on behalf of their patrons, the wireless industry and the cable TV industry. A sham that would have caused local government to raise taxes to replace the non-tax revenues paid by the wireless industry for fair-market site rentals.

SB 649 was opposed by nearly 300 local governments and government associations representing over 95% of the citizens of California who knew that they were being taken for a ride. It was also opposed by the AARP and the Teamsters.

It took the vision and courage of Governor Jerry Brown to VETO this horrible bill, and all local governments and their citizens in this Golden State thank him for his leadership and courage to buck the will of the wireless industry!

My partner, Robert (“Tripp”) May points out that Governor Brown sent us all an important message in his veto statement. Governor Brown said in relevant part:

There is something of real value in having a process that results in extending this innovative technology rapidly and efficiently. Nevertheless, I believe that the interest which localities have in managing the rights of way requires a more balanced solution than the one achieved in this bill.

Tripp notes that this is a value proposition: Each side should get real value.  SB 649 had no real value for the people of California because there were no real duties on the part of the wireless industry.  Value isn’t found in a blatant wealth transfer that results in the reduction in police and fire funding.  When the wireless industry gets that key point, and is prepared to discuss a true small cell bill (sorry…35 cubic feet is not small) they will find willing negotiators in California’s local government community, and among our partners.

Jonathan

To read Governor Brown’s veto message, click on the following link: Sb_649_Veto_Message_2017

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SB649: Autonomous Cars and Autonomous Lies

In a frantic effort to try and salvage SB649 (the “Wireless Industry Prevarication and Theft of the People’s Property Act”) from a veto by Gov. Brown, the wireless industry has come up with a nifty new lie: Without 5G small cells we cannot have autonomous cars.

Huh?

Well, with other industry ‘sounds good’ myths debunked, the wireless industry lobbyists have straining to find a new prevarication not once mentioned in any of the SB649 hearings: autonomous cars need small cells to work drive.

Okay, if that’s the case (and its not) then how will self-driving vehicles travel on controlled access state highways and Interstate Highways?  Will the industry commit to placing small cells for each company about every 500 feet along those high access/use roadways?  That would be about 45 new small cells along each mile of roadway.

Oh, wait… As Jim Lovell actually said during the Apollo 13 mission, “Houston, we’ve had a problem.”

The problem is that SB 649 doesn’t grant any rights to install small cells on controlled access state highways or Interstate Highways.  It only deals with right-of-ways controlled by local governments.

Oops!  Let’s not let the truth cloud the wireless industry lies…again.

SB 649 is simply a way of diverting 10s of $billions of rent from the citizens of California and into the pockets of wireless industry shareholders with no duties on the wireless industry to build even one small cell site, close one inch of the existing digital divide, provide even 4G services to under- and unserved areas in California.

Stop the SB649 Rip Off!

 

 

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Sprint, T-Mobile, Cable TV, Mobilitie, and Removal Bonds

Months ago I was pondering the society news pages talking about Sprint pursuing a marriage with the cable TV industry.  Today the society pages say the off-again, on-again romance between Sprint and T-Mobile is back on-again, and may well lead to their marriage.  If that marriage is consummated, I think it’s likely that T-Mobile will force Sprint to breakup with Mobilitie.  (Think Diana, Charlie, and Camilla.  One too many.)

Ricochet node hanging below a street light arm.

I’m sure that many–especially Mobilitie–hoped that the Sprint/Mobilitie relationship would blossom into a love that could survive the test of time. Alas, I don’t think that is in the cards, or the stars.  Cable TV and T-Mobile both seem to prefer fiber backhaul over wireless backhaul because, well, it just makes more speed and capacity sense over the long term.

From a local government perspective, this sad evolving ‘left-after-the-alter’ story (that might involve Mobilitie) strongly suggests that we must more carefully consider requiring small cell/DAS providers to post removal bonds as a condition of approval of new right-of-way installations.  It seems likely that some providers of small cell services and backhaul will survive, while some with less robust and less saleable networks will not.

What we in local government service must avoid is a repeat of the Metricom (Ricochet) fiasco in 2001.  That radio backhaul internet firm went belly-up, bankrupt, and abandoned thousands of their wireless nodes on street lights in major cities across the U.S.  For years many of those nodes sucked street light power until the local power entity manually disconnected the ballast/photocell tap above the cobra head.  Many of those abandoned nodes can still be seen on street lights today.

It is not the bonds of wireless matrimony that count anymore; it is indemnification provisions and the performance bonds (or even the irrevocable letters of credit) to ensure removal of otherwise abandoned equipment that count.

That’s my opinion.  What’s yours?

Jonathan

 

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A Modest Proposal to ‘Shake Up’ SB 649

California is a part of the Pacific Rim’s earthquake ring of fire, as the wireless industry likes to remind our State Senators and Assembly Members.  In fact, as part of its full court press on California legislators to pass SB 649 into law, one of the more commonly-heard arguments in legislative offices is that 5G small cell sites are necessary to give cell phone users, hospital, police and fire stations, and others advance warnings of earthquakes.  In fact, without 5G there is no earthquake early warning system.

(Not surprising is that the wireless industry assertion is a factual hoax from a technology standpoint, but let’s not let facts confuse wireless industry puffery.)

What is surprising, given the industry chest-pounding claims about the need for 5G small cells for an earthquake warning system, is that SB 649–which was written by the wireless industry–is absolutely devoid of any mention of any requirement to make earthquake early warnings a reality, much less a wireless industry obligation.

Essentially, the wireless industry’s claims that we need 5G for earthquake early warnings is good old fashion fear-mongering without even an iota of an industry solution.

Well, folks, I’m here to help suggest a once-for-forever solution to the wireless industry’s concerns about the need for earthquake early warning!

Let’s start with an insane reality connected to SB 649.  As ghost written by the wireless industry, SB 649 will result in billions of dollars of wireless industry shareholder value by requiring that municipalities rent publicly owned and paid-for property at far below fair market value. Those under-market value rents will be in place for at least 50 years.

Here’s another insane reality: Historically, the state and federal governments have been unwilling to come up with the relatively modest funding required to deploy and maintain a fully effective earthquake early warning system in this Golden State.

Given  that:

  1. California has unsuccessfully struggled to get adequate state and federal funding to fully deploy and activate a statewide early earthquake warning system, much less one that is integrated into the wireless and broadband wired networks, coupled with the need to fund maintenance and improvements over decades, and

  2. the wireless industry has repeated told our legislators that 5G small cell deployment is necessary for them to provide the pubic with early warnings of earthquakes, and

  3. the wireless industry will be given nearly free access to billions of dollars of public property and funds by the cost caps built into SB649, and

  4. Mexico’s early earthquake warning system just provided up to a full minute of early warning time before the 8.1 magnitude waves hit…

I think the wireless industry should be funding and building a world-class earthquake early warning system to save lives paid out of their wallets to be grossly fattened by SB 649. The wireless industry lobbyists say that 5G is needed for earthquake early warning, and SB 649 is needed to lower wireless industry site rental costs? Okay, then I’m sure you’ll amenable to amend SB 649 to require the very same concerned wireless industry to fund the statewide research, deployment, maintenance, and upgrades of the world’s finest and most effective earthquake early warning system.

That would be a fair concession, at least in part, for the billions of dollars of financial benefits the wireless industry and their shareholders will receive from SB 649.  I’m sure my industry friends will agree to this modest proposal.  I expect your next amendments on this within, say, the next 7 days.

I’m waiting to hear from you…  I’m sure @DrLucyJones and her scientists will quaking in their boots waiting, too! (Sorry…I had to have a bad pun in this post somewhere!)

Jonathan

PS: If the wireless industry needs help writing an amendment to achieve this modest proposal, just ask.  I’m ready.

PPS: Here’s my industry-friendly slogan for this proposal,

Save a life, save a revenue unit!

 

 

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