Authored by Daniel Lightfoot, Senior Intergovernmental Relations Representative, League of Minnesota Cities
The Federal Communications Commission (FCC) is considering sweeping new rules that could significantly limit how cities manage wireline telecommunications infrastructure in public rights-of-way. The Notice of Proposed Rulemaking (NPRM), Build America: Eliminating Barriers to Wireline Deployments (WC Docket No. 25-253), according to the FCC is intended to accelerate broadband construction by reducing what the FCC characterizes as “excessive permitting delays, fees and other local requirements.”
For cities, however, the proposal reaches well beyond routine streamlining. If adopted, it would establish federal standards for local permitting timelines, cost recovery and negotiated conditions, and make it easier for providers to challenge local requirements as barriers to deployment under Section 253 of the Communications Act.
What the FCC is Proposing
120-Day Shot Clock
A city would be presumed to have effectively prohibited service if it does not act within 120 days on all authorizations required for a deployment in a particular right-of-way. Under the proposed rule, the clock could begin when the provider submits its first application or completes the first mandatory pre-application step rather than when the application is deemed complete. The FCC is also considering whether the same deadline should cover batched applications and facilities outside the right-of-way, such as fiber huts.
Limits on Local Fees
The FCC proposes limiting fees to a reasonable approximation of a city’s actual, direct and objectively reasonable costs tied to a particular authorization. It also seeks comment on national fee safe harbors much like the existing rules for Small Cell Wireless Facilities. Fees above those amounts could be presumed unlawful unless the city documents and justifies its costs. Percentage-of-revenue, per-linear-foot and recurring right-of-way fees could be especially vulnerable.
Restrictions on In-Kind Compensation
The value of requirements — such as spare conduit, dark fiber, free or discounted service or work beyond the immediate construction footprint — could count toward the FCC’s fee limits. The NPRM even asks when road, curb or accessibility improvements should be treated as compensation rather than legitimate restoration or mitigation.
Rules for Commingled Facilities
Cities could not impose additional requirements simply because the same fiber facilities also carry broadband or other non-telecommunications services. Because modern networks routinely support multiple services, this provision could give the proposed timeline and fee standards broad reach.
Why This Matters to Cities
Cities should be aware of the broad reaching ramifications of this rule as it pertains to compensation for use of the public rights of way and management of the public rights of way that are held in trust for residents. Wireline construction sited in the public right of way is not a simple desk review. Wireline deployment reviews often involve excavation, traffic control, road closures, utility coordination, engineering review, inspections and restoration. Requiring every authorization to fit within one federal timeline, particularly if the clock starts with an incomplete submission or applies to a large batch, could strain staff capacity and make careful coordination more difficult. Smaller and rural communities may feel those pressures most acutely.
The fee proposal could also shift private deployment costs to local taxpayers. If adopted, cities may need more detailed systems to track and document project-specific labor, consultant, inspection and administrative costs, while losing the ability to use established fee structures or negotiate community benefits. Requirements intended to protect streets, utilities, accessibility and public safety could also become subjects of preemption disputes.
Importantly, the NPRM does not propose automatic approval when the 120-day deadline expires. It would instead create a presumption that providers could use in an FCC preemption petition or court challenge. The FCC is also considering delegating Section 253 preemption petitions to its Wireline Competition Bureau, potentially accelerating disputes.
Cities are Encouraged to Submit Comments
Comments are due Sept. 21, 2026, and reply comments are due Nov. 5, 2026. Cities can file electronically through the FCC’s Electronic Comment Filing System (ECFS). Select a standard filing, enter WC Docket No. 25-253 and upload the city’s comments. Filings are public.
The most useful comments will include concrete local examples: the steps and time required to review wireline projects; problems caused by incomplete or batched applications; staff and consultant costs; utility strikes or infrastructure damage; restoration and accessibility needs; and examples of provider-caused delays. Cities should also explain which local processes have successfully expedited deployment while protecting residents and public assets.
The FCC’s final rules will be shaped by the record before it. Cities should use this opportunity to demonstrate that timely broadband deployment and responsible local stewardship are complementary and not competing goals. As always, local government organizations will continue to suggest that the FCC facilitate efforts by telecommunications providers and state and local governments to work together to meet shared deployment goals.
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