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desired. Based on these factors, the TROPOS representative indicated that the cost of installation is between $20,000 and $50,000 a square mile. Mr. Mayer concluded that the main reasons that Chaska is successful in installing, supporting and maintaining its wireless Internet system is because: • The City owns their own electric utility, thereby reducing their costs by not having to acquire or rent space on the utility poles. The City's already existing utility staff maintains their system. The City had access to fiber optic cable that was already in place when they decided to provide a wireless system. The City was significantly underserved by other cable systems/ companies. Since Chaska began providing wireless Internet services to its community, many other communities, most of them smaller, have started to provide similar services. The two reasons for installing a wireless Internet system that are most often stated include economic development opportunities and affordable access for everyone in the community. The City of Buffalo also has initiated its own wireless Internet system using equipment from WaveRider. Their story is very similar to Chaska and the summary of their project is also included for your review. NSCC Strategic Planning Retreat. On Saturday, February 26th, the North Suburban Cable Commission held a daylong strategic planning retreat and as part of their agenda, they discussed wireless technology and presented an overview of wireless networks in the Metro area. As expected, the Chaska story figured prominently in that discussion. Many items were discussed including the possibility of the 10 cities buying out Comcast and operating the whole system through a consortium similar to what currently exists. This idea received serious consideration and discussion. Cor Wilson, NCSS Executive Director, indicated that the 10 -city consortium does have a franchise agreement with Comcast that runs through 2013. Some attendees felt that this wash t an impediment, but rather an opportunity to research this idea further. Staff was given direction to look into this idea and provide the Operations Committee with the information they found. Terre Heiser, City of Roseville reported that it would cost approximately $27.1 million to replace/ purchase the whole cable system. This being reported, Terre also said that Comcast wants to meet with him and his assistant, Mike, about the idea of installing "fiber to the home' throughout the system. He said that they indicated that this installation is mostly done in Roseville and some other member cities. Terre said that the one piece of the project that Comcast may want cities' assistance with is the installation of the fiber boxes on individual homes. This piece is very expensive due to the labor intensity of this task. FiberFirst Minnesota. I also attended the FTTH Conference on March 30, 2005 presented by FiberFirst Minnesota. FiberFirst Minnesota is a consortium of telecommunications providers, cable companies and other interested or related businesses including FTTH Communications, Hiawatha Broadband (HBC), Optical Solutions, Technology Solutions & Consultants, ADC, Blandin Foundation, Bechtel, Corning, and Primal Solutions. The primary mission of this group is to work with stakeholders and interested parties to establish a network that would ultimately bring fiber H:\Memos\2005 \Wire1ess Internet 05032005.doc rev. I