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Restrictive Covenants Meet the Telecommunications Act of 1996

BY Stewart E. Sterk
April 01, 2004

Congress enacted the Telecommunications Act of 1996 to encourage development of telecommunications technologies, and in particular, to facilitate growth of the wireless telephone industry. The statute's provisions on pre-emption of state and local regulation have been frequently litigated. Last month, however, the Court of Appeals, in Chambers v. Old Stone Hill Road Associates (see infra, p. 7) faced an issue of first impression: Can neighboring landowners invoke private restrictive covenants to prevent construction of a cellular telephone tower? The court upheld the restrictive covenants, recognizing that the federal statute was designed to reduce state and local regulation of cell phone facilities, not to alter rights created by private agreement.

The Federal Statute: State and Local Pre-emption

Section 332(c) of the statute (47 USC sec. 332(c)) deals with regulatory treatment of mobile services. Subsection 332(c)(3) preempts state or local government authority “to regulate the entry of or the rates charged by any commercial mobile service or any private mobile service … ” Subsection 332(c)(7), however, largely preserves state and local zoning authority over wireless facilities: “ Except as provided in this paragraph, nothing in this Act shall limit or affect the authority of a State or local government or instrumentality thereof over decisions regarding the placement, construction, and modification of personal wireless service facilities.”

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