AT&T has lost a court case in which it tried to stall construction by Google Fiber in Louisville, Kentucky.

AT&T sued the local government in Louisville and Jefferson County in February 2016 to stop a One Touch Make Ready Ordinance designed to give Google Fiber and other new ISPs quicker access to utility poles. But yesterday, US District Court Judge David Hale dismissed the lawsuit with prejudice, saying AT&T's claims that the ordinance is invalid are false.

"We are currently reviewing the decision and our next steps," AT&T said when contacted by Ars today.

One Touch Make Ready rules let ISPs make all of the necessary wire adjustments on utility poles themselves instead of having to wait for other providers like AT&T to send work crews to move their own wires. Without One Touch Make Ready rules, the pole attachment process can cause delays of months before new ISPs can install service to homes.

Google Fiber has continued construction in Louisville despite the lawsuit and staff cuts that affected deployments in other cities.

AT&T’s claims picked apart by judge

AT&T claimed that Louisville has no jurisdiction under federal or state law to regulate pole attachments, an argument that the district court judge picked apart. AT&T argued that the rule referred to in-court documents as Ordinance No. 21 "impermissibly regulates the terms and conditions of pole attachments," but in doing so AT&T "narrowly characterize[d] Ordinance No. 21 as one that regulates pole attachments," the judge wrote. In reality, "the ordinance actually prescribes the 'method or manner of encumbering or placing burdens on' public rights-of-way," Hale wrote.

Further Reading AT&T sues Louisville to stop Google Fiber from using its utility poles

Kentucky's state Public Service Commission has exclusive jurisdiction over regulation of rates and services of utilities, but cities are allowed to "regulate local utilities in every area except as to rates and service," the judge wrote.

"Louisville Metro has an important interest in managing its public rights-of-way to maximize efficiency and enhance public safety," Hale wrote. "And Kentucky law preserves the right of cities to regulate public rights-of-way. Because Ordinance No. 21 regulates public rights-of-way, it is within Louisville Metro’s constitutional authority to enact the ordinance, and [Kentucky law] cannot limit that authority."

AT&T's claim that federal law invalidates Louisville's ordinance failed to convince the judge as well. The Federal Communications Commission helped Louisville on this front with a court filing in October 2016; the FCC said that states are allowed to opt out of the federal rules governing access to utility poles and that Kentucky is one of 20 states that has opted out of the federal regime and imposed its own rules.

The judge agreed with the FCC and Louisville, writing that "While Ordinance No. 21 imposes requirements that are different from the FCC’s regulations, AT&T’s federal preemption argument fails as a matter of law because the FCC regulations at issue do not apply in Kentucky."

Most of the poles used by AT&T in Louisville are owned by AT&T or Louisville Gas & Electric.

AT&T also claimed that Louisville Metro did not follow its own requirements when enacting the ordinance. This was an attempt to invalidate the ordinance on a technicality related to how the metro government amended its municipal code.

"The Metro Council uses the 'strike-through and underscoring method' of amending the municipal Code, which identifies both the language to be repealed and the new language to be added," Hale wrote. "This is the longstanding practice of the Metro Council when enacting ordinances that amend the Code. AT&T has failed to show how this method is inconsistent with the requirements."

Charter lawsuit still pending

Charter also sued Louisville over the One Touch Make Ready ordinance. That lawsuit is still pending and appears to be heading to trial. Besides objecting to One Touch Make Ready, Charter also alleged that Louisville has given preferential treatment to both AT&T and Google Fiber.

While AT&T operates under a historic state-issued telecommunications franchise, it was not required to obtain a separate franchise from Louisville Metro Council, Charter says. Louisville regulates Charter as a "Cable Communications System," but Charter says that Louisville is placing less burdensome regulations on Google Fiber by treating it as a 'Communications Service' provider instead.

Disclosure: The Advance/Newhouse Partnership, which owns about 13 percent of Charter, is part of Advance Publications. Advance Publications owns Condé Nast, which owns Ars Technica.