Over its strong objections, Frontier Communications must lease part of its fiber-optic cable network to rival Citynet, according to a state Public Service Commission ruling that could boost competition for high-speed Internet service in West Virginia.
Last week, the commission upheld most of an administrative law judge's decision that requires Frontier to lease unused fiber to Citynet in several rural communities, including Philippi, Buckhannon and Elkins.
The dispute between the Internet providers has lasted since August 2014, when Citynet filed a complaint against Frontier at the PSC. Citynet has argued that Frontier's refusal to honor agreements to lease fiber to Citynet and other Internet providers has stifled competition.
"The Public Service Commission has taken a tremendously positive step for improving telecommunication services in the rural markets throughout the state, which is desperately needed," said Jim Martin, Citynet's CEO. "We feel vindicated by [the commission's action]."
In appealing the administrative law judge's decision, Frontier asked the PSC to bar Citynet from using the unused fiber to provide broadband Internet service to customers. Frontier asserts that the Federal Communication Commission's "Net Neutrality Order" - adopted in February - doesn't require the company to lease fiber to competitors that plan to use fiber for high-speed broadband services.
The PSC, however, said the FCC should sort out those matters. Several lawsuits already have been filed over the FCC's order. Citynet officials have said they plan to use the fiber for broadband, if the FCC approves.
Frontier spokesman Andy Malinoski said the company already leases unused fiber to other telecommunications providers across West Virginia.
"The commission's order helps provide a framework for our business moving forward, and supports much of our position in this unique case," Malinoski said.
In late July, the administrative law judge directed Frontier to provide detailed fiber route maps if Citynet asks to lease additional unused fiber elsewhere in West Virginia.
But the Public Service Commission last week overruled the judge, saying Frontier would only have to release less-detailed "street-level maps." Frontier successfully argued that the more-specific route maps included highly confidential information.
Last year, a Frontier engineer told the PSC that the company typically sets aside a third of its unused fiber for maintenance and emergencies - and, therefore, didn't have extra fiber to lease to Citynet.
But the Public Service Commission - and the administrative law judge - concluded that Frontier could lease at least two strands of fiber to Citynet without compromising Frontier's service to customers.
"The question is, how much fiber should be retained?" commissioners wrote in their order last week. "Frontier did not present convincing evidence that one-third of the fiber should be retained by it."
Also last week, Frontier agreed to spend $150 million to upgrade its Internet network in West Virginia, following a settlement with Attorney General Patrick Morrisey's office. Morrisey said his office received numerous complaints about Frontier's slow Internet speeds.
Frontier also faces a separate class-action lawsuit filed by customers who allege the company didn't provide the Internet speeds it advertised.
Reach Eric Eyre at ericeyre@wvgazettemail.com, 304-348-4869 or follow @ericeyre on Twitter.