Boston, MA 12/17/2013 (wallstreetpr) – AT&T Inc. (NYSE:T), a company that holds about 20% of the utility poles in Austin has denied access rights to Google Inc (NASDAQ:GOOG), as it is not a cable or telecom provider. Google wants to build a fiber network in Austin but AT&T has caused a sort of interference in that. The rest of the 80% of the utility poles are owned by the city. It was reported recently that the Council of City was expected to vote on for forcing AT&T to allow Google Inc. use their poles so as to install it high speed Fiber network in the city, instead of adding more poles and increasing congestion. However, the vote has been delayed until January 23, 2014.
Reasons of AT&T
The company Google and AT&T Inc. (NYSE:T) are anticipated to negotiate an agreement before the day of vote but the public stance of AT&T says that they cannot allow Google to use their poles. The Vice President of Public Affairs of AT&T, Tracy King said in a report that under federal law, Google has every right to use their poles if it qualifies as a cable or telecom provider. He said that when Google will become qualified for this, they will not hesitate to work with it. They work will all the qualified providers of cable or telecom.
Are The Reasons Valid?
It may sound as if AT&T Inc. (NYSE:T) is whining about Google for sharing its utility poles, its reasons are correct, legally. The assistant manager of telecommunications and regulatory affairs, Paul Lewis said that a company that holds public rights for utility poles can provide access only to certified providers of telecommunications and to TV/cable companies. It is no doubt that Google is a video service provider but it cannot be certified as TV/cable Company. Therefore, the current regulations do not allow utility poles public rights to Google. However, Google said that it can pay for access to utility poles at negotiable prices.