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c+ 9W4 ce <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />515 Little Canada Road. Little Canada, MN 55117 -1600 ADMINISTRATOR <br />(651) 484 -2177 / FAX: (651) 484 -4538 Joel R. Hanson <br />Email: cityhall @ci.little- canada.mn.us <br />MEMORANDUM <br />TO: Mayor Fahey and Members of the City Council <br />FROM: Kathy Glanzer, Deputy Clerk <br />DATE: August 4, 2000 <br />RE: Update on Cable/Telecommunication Issues <br />Merger — <br />AT &T's merger with MediaOne has been completed. As a result you will soon be seeing <br />a name change to AT &T Broadband. As a part of the merger process, an analysis was <br />done of AT &T's financial, technical, and legal capabilities to operate the cable franchise. <br />AT &T met has the necessary qualifications. The merger was also reviewed by the FCC <br />and was allowed to proceed. <br />Competitive Franchise Process — <br />The North Suburban Communications Commission has received two applications for <br />competitive franchises. These are from Wide Open West and Everest. The initial step in <br />the process is to review these applications with regard to financial, technical, and legal <br />capabilities to operate franchises in the north suburban area. This process has begun. <br />Given the fact that these companies are seeking to serve competitors to an existing <br />system, an expanded review of the applications is being undertaken. The expanded <br />review will look at the applicants' financial projections as well as sources and uses of <br />funds. It will determine the viability of their business plans, analyze construction plans, <br />and verify adequate technical standards. The expanded review will also look at the <br />impact that competitive franchises will have on existing utility poles, underground <br />utilities, and rights -of -way. <br />Another factor in the review is the ability for the new companies to meet unmet <br />community needs. Franchises awarded to new companies will have to be on a level <br />playing field with the AT &T franchise. Given that AT &T already provides community <br />and institutional access, rather than duplicate these services consideration should be given <br />Page 32 <br />