City of Cayce v. AT&T Communications of the Southern States, Inc.

FINNEY, Chief Justice:

We agreed to answer two questions certified by the United States Fourth Circuit Court of Appeals concerning the powers of a municipality vis-a-vis interstate telephone fiber optic cable installed within the municipality’s corporate limits. In essence, the certified questions ask whether franchise powers can be exercised in circumstances where the utility provides no direct services to the municipality or its residents, and whether a fee may be charged. We hold the respondent (Cayce) may not require appellant (AT & T) to enter a franchise agreement as a condition of…