ERMUSR MISC ISSUES 03-09-2004 - Laserfiche WebLink

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//I/V�1 MINNESOTA 1.1uNICIPAL UnUrIES-S SCC'A IION 12805 HISnvay 55 • Suite 212 • Plymouth, MN 55441-3880 • 763 551 1230 • 800 422 0119(MN) • Fax 763.551.0459 Municipal Telecommunications A modem, affordable telecommunications infrastructure is key to economic growth in the 21st century. Unfortunately, many areas of our state are without this infrastructure. Others suffer with unreliable, slow, or expensive service. Municipal utilities are at the cutting edge of broadband technology service provision in Minnesota. Municipal utilities offer a variety of wireless, DSL and fiber optic broadband services. The first test of broadband power line technology—which makes surfing the Intemet as easy as plugging in your computer—will be conducted by Rochester Public Utilities this spring. The state's municipal electric utilities and small, rural telecom providers share much the same perspective on broadband deployment in Minnesota, a fact that emerged during testimony before the House Regulated Industries Committee on Jan. 29, 2003. One member of the Minnesota Association of Rural Telecos testified that his company began offering DSL three years ago because a local Polaris dealer needed it to remain in business. The company didn't develop a business plan. It made the investment because broadband access was vital for the community. Another small telephone company manager told the Regulated Industries Committee in an Oct. 30, 2001 hearing that broadband deployment in Greater Minnesota was cost prohibitive without subsidization. Minnesota's dominant local exchange carrier—Qwest--continues to lose money, reporting a fourth-quarter loss of$307 million Feb. 19, after losing billions in previous years. The company testified before the Minnesota Public Utilities Commission Feb. 4, 2003 that it did not view DSL deployment in Greater Minnesota as a good business decision. Cities without affordable broadband access should not be sentenced to the economic backwaters. Municipal utilities are often well-positioned to provide broadband service to their cities. The Legislature can allow cities to better control their economic destiny by: • Giving municipals express authority to enter into joint telecommunications ventures with other entities. • Removing barriers to entry to municipal telecommunications efforts. • Giving cities an opportunity to bid on local exchanges, if they are to be sold. Joint ventures make sense. Municipal utilities have authority to enter into joint ventures with other entities for the provision of electric service. It is a logical extension to include telecommunications under the municipal joint venture authority. Municipal utilities are perfect partners for local telephone companies in the provision of broadband access in