Frontier Communications Inc. has backed AT&T Inc.(T Quick QuoteT - Free Report) in the latter’s legal battle against Louisville Metro Government over an ordinance that will give Alphabet Inc.’s (GOOG Quick QuoteGOOG - Free Report) Google Fiber some key pole access. AT&T filed the lawsuit this February against the "One Touch Make Ready" ordinance passed by Louisville Metro Government, which allows competitors to install wires on utility poles owned by AT&T without prior approval.

Such ordinances are passed in order to lower network layout costs and reduce the time for installing network equipment.

Frontier’s Take

Frontier is concerned that the company could find itself in a similar situation in the future too. Moreover, if the ordinance is successfully implemented, other cities may soon follow suit. Recently, the telecom company has purchased wireline assets from Verizon Communications Inc. (VZ Quick QuoteVZ - Free Report) . Naturally, it is no surprise that Frontier has now teamed up with AT&T against the said ordinance. Moreover, since the ordinance allows third parties to utilize poles which could be less familiar, companies like Frontier and AT&T face the risk of damage to their existing cable layout.

Bottom Line

Even as competition continues to intensify in the telecom space, such ordinances are definitely going to bring in new players in a market which is presently dominates by AT&T and Frontier. Thus, these two telecom operators have joined hands to lobby against the successful implementation of such detrimental laws. Nevertheless, it is ultimately the consumer who bears the brunt of paying higher fees for lower speed.

Currently, Frontier has a Zacks Rank #3 (Hold). AT&T is a better-ranked stock in the same space, carrying a Zacks Rank #2 (Buy).

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