TL:DRPresident Trump issued a new executive order (EO) this week
aimed at streamlining the environmental permitting process. But how the new rules might affect the US telecom industry are somewhat unclear."We don't think the EO will be material to reducing the time and costs of broadband deployment but there is a possibility that it leads to technological developments and other innovations that do have that impact," wrote Blair Levin, a policy adviser to New Street Research and a former high-level FCC official, in a recent note to investors.The topic is one of great importance to virtually every telecom company in the US. That's because many network buildouts or upgrades require such permits, and telecom companies routinely complain about the lengthy time it takes to obtain such permits.
"NEPA [National Environmental Policy Act] reviews require significant time and money and substantially slow infrastructure deployment," wrote the Rural Wireless Association (RWA) in new comments to the FCC. The trade association represents many of the nation's smaller wireless network operators."In many situations, these costs and delays substantially outweigh the benefits of such reviews especially when a proposed facility has minimal environmental or historical impact," the group argued in an FCC proceeding dedicated to deregulation.
But Levin, the New Street adviser, wrote that Trump's new orders don't specifically mention telecom or broadband, nor do they address environmental permitting on federal lands or how state rules might be handled.
The details
"The government does not properly leverage technology to effectively and efficiently evaluate environmental permits, causing significant delay to important infrastructure projects that impact our economic well-being," according to Trump's new executive order. "This will now change."
The order mentions "roads, bridges, mines, factories, power plants" as well as "other" areas.The order details methods to speed up permitting, including by using digital processes, accelerating decisions, improving transparency and increasing agency coordination.The order also proposes a Permitting Innovation Center that will "design and test prototype tools that could be implemented pursuant to the Permitting Technology Action Plan for NEPA reviews and other environmental permits and authorizations."
"A permitting innovation center could produce innovations that could filter down to the state and local levels and be helpful over time," Levin wrote.Levin also said other elements of the order could help the telecom industry in the long run as they're digested by the FCC and other players.
"While not directly focused on broadband, and while not targeted at what we think are the principle permitting concerns of broadband network providers, the initiative could have some indirect collateral benefits," he added.
My Thoughts ðŸ’
RIP to my Verizon shares ahaha. But it is interesting to see telecom point to NEPA for a lack of progression in the industry which is a stretch to me. But overall NEPA can be a real pain in the butt even with this EO a sector of the USA economy is confused how it will benefit their businesses.