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.^~/ <br />Elk River ^-~ <br />Municipal Utilities <br />13069 Orono Parkway <br />Elk River, MN 55330 <br />July 6, 2006 <br />To: Elk River Municipal Utilities Commission <br />Jerry Takle <br />Jim Tralle <br />John Dietz <br />From: Bryan Adams <br />Subject: Community Internet System <br />phone: 763.441.2020 <br />Fax: 763.441.8099 <br />The last couple of commission meetings have included discussions regarding a community wide <br />broadband Internet system. Currently there are 3 players in this market in Elk River. They are <br />Qwest, Charter Communication & Northstar Access. Apparently between these 3 providers, Elk <br />River does not have the desire level of broadband Internet service. <br />If it is this commissions desire to facilitate adequate community wide broadband service, the <br />following decisions need to be made: <br />1) Assess the Elk River market <br />a) Who are the current providers of voice video and data services <br />b) Is there an unmet need <br />c) Are people happy with their providers <br />d) Is the market big enough for competition <br />e) Is the risk worth the reward <br />2) Develop a business plan <br />a) Define what technology to be used. Wireless, fiber to the home, copper <br />system, power line carrier, etc... <br />b) Cost estimates for construction <br />c) Financial Assessment <br />d) Legal & regulatory issues & fees <br />e) Develop appropriate agreements/contracts <br />f) How to finance and cost of financing <br />g) Possible benefit to existing utility services (SCADO, AMR, Load Management) <br />