Interesting action on muni nets down in florida.

David Beery

http://telephonyonline.com/home/news/florida_senate_telecom_041405/

Florida Senate reaches compromise on muni telecom nets
By Carol Wilson

Apr 14, 2005 12:20 PM


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The Florida State Senate, one of several state legislative bodies
considering a ban on municipal telecom projects, has instead adopted
compromise legislation that allows cities and towns to build their own
advanced telecom networks under certain circumstances.

The measure, which must still pass the Florida House of Representatives,
was the result of weeks of effort by people on both sides, and
represents significant compromise by both the telephone and cable
companies and the municipalities, said Barry Moline, executive director
of the Florida Municipal Electric Association, which represents many
smaller towns and cities.

"We don't necessarily consider it a victory--we got some things and we
gave up some things," he said. "I think, overall, it's good public
policy."

The compromise replaces legislation that would have prohibited
municipalities from building telecom networks and required communities
that had already built such networks to stop adding customers. Florida
is one of several states pondering similar legislation this year.

The compromise, reached with the assistance of Gov. Jeb Bush's office
and State Sen. Lee Constantine, allows municipalities to build their own
networks only after they have provided notice of their network
requirements to private network operators and tried to get those
requirements satisfied by those enterprises. The municipality must
prepare a business plan that shows how its network operation would break
even within four years, and conduct a series of public hearings
explaining the plan to the public. If financing of the network will
require more than 15 years, a public referendum is required.

Moline admits that many of his organization's members are unhappy about
having to consult the telephone and cable industry before building the
networks they believe their municipalities need.

"A lot of cities have a philosophy that they should be able to provide
for the comfort and convenience of their community, in whatever the
community wants," he said.

Given the highly competitive nature of the telecom business, however, it
makes sense that existing service providers don't want more competition
from a public entity with taxing authority.

"The reality is that in a competitive industry, the competitors can't
serve everyone," he said. "They have to pick and choose where they can
make a profit. And they are skipping over small and rural communities."

Representatives of both BellSouth and Florida's cable industry spoke in
favor of the bill, Moline said, but he's waiting to see if new arguments
arise in that body.
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