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
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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