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092396 CC WS AgP C:ITY COUNC:IL WORK SESS:ION C:ITY OF SHOREWOOD MONDAY, SEPTEMBER 23, 1996 5755 COUNTRY CLUB ROAD COUNC:IL CHAMBERS FOLLOW:ING THE REGULAR C:ITY COUNC:IL MEET:ING AGE N D A 1 . CONVENE WORK SESS:ION A. Roll Call B. Review Agenda 2 . D:ISCUSS:ION ON TELECOMMUN:ICAT:IONS :ISSUES 3 . ADJOURN - , Emerging Communications Issues for Shorewood The Telecommunications Act of 1996 signed into law by President Clinton last spring will usher new communication services and providers in the next few years. Gone is the local telephone service (US West) and CATV (Triax) monopolies. Gone is the duopoly cellular suppliers (US West Cellular/Airtouch and Cellular One/AT&T). US West will be able to offer both local and long distance services as well as video services. Triax will be able to offer local and long distance services in addition to their CATV services. Long distance providers such as Sprint, A TT and MCI will be allowed to offer local service via wireless or wireline line networks. What does this all mean to Shorewood? If US West, Triax, Sprint, MCI, AT&T et al build local networks in Shorewood, the next few years we will see constant construction of one type or another, cable trenching, aerial and antenna tower construction, etc. We will also see opportunity for new streams of revenue and services in kind. Triax for example has petitioned the LMCC for early renewal of their franchise contract so that they can get a jump on US West in our serving area. Triax is motivated to conclude these negotiations very quickly and is receptive to offering free communications services as payment in kind in addition to the normal 5% franchise fee. These other companies will have to enter into negotiations of one type or another with the City of Shorewood, but we must have an even handed process on how to deal with these companies in place. First order of business should be to put in place a Communications Ordinance that encourages communications competition in Shorewood. The League of Minnesota Cities has drafted a model ordinance that Shorewood can use as a starting place. Second we should discuss the impact of these new networks on Shorewood. Some of the emerging technologies will require mounting small refrigerator sized apparatus above ground every several thousand feet. The Personal Communication System (PCS) will require numerous monopoly antennas for providing service. With up to seven licensees per serving area, this could amount to dozens of unsightly antennas. With multiples CATV providers, the utility poles might have twice or three times the wires looping from pole to pole. Plus an explosion of unsightly pole attached apparatus. Since completion is likely to be fierce, the companies have little incentive to spend extra cost in the area of aesthetics. In our communication ordinance we should have standards that apply to these aesthetic issues. A troubling aspect of these new services (i.e. internet access) is the lack of a clear requirement for universal access (like US West is required for phone service). Universal access means that anyone wanting the service is guaranteed of getting that service at a reasonable (or average) cost. Though we can not preempt federal law in this matter, we can require similar requirements as we do on Triax to provide Public, Educational and Governmental access. For example, we could set up computer labs in schools, public libraries and our community center and require that the service providers pay to maintain them. These would be open to the public, much in the same way public libraries are open to the public. Finally we need to assess what are the communication needs for the City of Shorewood and then move to obtain these services at the lowest cost to our taxpayers. What telecommunications services do we now pay for from US West. What additional services would we like, but don't now because the cost is too high. What are our wireless needs in terms of equipment and service. List of Emerging Techo Jargon PCS Personal Communications Service- A digital wireless mobility service similar to cellular. HFC Hybrid Fiber Coax- an upgrade to traditional coaxial based CATV networks where fiber trunks distribute two-way service to small (500 home) serving areas MMDS Microwave Multiple Distribution System- a wireless CATV service for large areas VOD Local Microwave Distribution System- a wireless CATV service, but small serving areas Video On Demand- a service that allows subscribers to choose a movie from a large database of titles. Near Video on Demand-a service that takes current blockbuster titles and staggers the start time by a prescribed period of time (10-15 minutes). Pay Per View- a service that plays certain programming at certain times and bills the subscriber. LMDS NVOD PPV