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To: Frank A. Coluccio who wrote (18044)	12/18/1999 3:30:00 PM
From: GraceZ	Respond to of 29970

I've got some Christmas shopping to do, or, so I've been told. -smile- Gee, Frank, aren't you going to wait until Christmas Eve so you can be out there with all the rest of the guys?

To: Frank A. Coluccio who wrote (18044)	12/18/1999 8:01:00 PM
From: Scott Heaton	Read Replies (1) \| Respond to of 29970

Jessie Ventura is calling for open access up here in Minnesota. Scroll down to the bold. The article was in the Minneapolis StarTribune - Scott Heaton Published Wednesday, December 15, 1999 Major changes proposed for state telecommunications policy Mike Meyers / Star Tribune The Ventura administration on Tuesday proposed what it billed as the most far-reaching change in state telecommunications policy in more than 80 years. The ambitious, complex plan -- involving changes in public utility regulation, taxes and telephone rates -- aims to give every Minnesotan the chance to participate in the Information Age, whether through high-speed telephone connections, cable TV wires or satellite dishes. It would involve shifting hundreds of millions of dollars out of some pockets and into others, making the proposal the likely topic of intense lobbying in the months ahead. The next step is for legislators to frame bills, opening a broad debate on telecommunications policy. Reaction from legislators and officials of the telecommunications industry on Tuesday ranged from muted to skeptical, with many saying they want more time to study the proposal. The Ventura administration portrayed the proposed changes as long overdue, noting repeatedly that most state laws governing telecommunications were written during Woodrow Wilson's presidency. Gov. Jesse Ventura and members of his cabinet told legislators that their proposal would foster free-market competition, increase consumer choices and lower the cost of high-speed access to the Internet. And they said the state's economy would get a boost in the process. "How can a business compete these days if they don't have access to the latest technology?" Ventura said in a joint hearing of the Senate and House on telecommunications policy. "We don't want a state of haves and have-nots." A state survey of 702 Minnesota cities this fall found that 85 percent have cable TV service, although not all with the technology to allow Internet or digital telephone access. It also found that 109 cities have broadband modem service allowing high-speed Internet access via telephone, and that another 125 cities plan to add that service. Particulars of the plan The 153-page "Telecommunications Strategic Plan" is part of the governor's broader plan for altering the way state government does business. The telecommunications plan would: Lift state regulation of telephone and cable TV rates as competition increases -- a carrot to give companies the incentive to offer "open access" to rivals. "Open access" means that a company leases cable, wire or broadcast capacity to rival service providers. Offer $200 million in sales tax breaks during the next four years to companies that make capital investments in advanced telecommunications equipment. Scrap $500 million in annual "invisible subsidies" that have been built into telephone rates for generations. Business customers pay higher rates to keep rates lower for residential customers, for instance. And some of the money paid by urban customers goes to underwrite the higher cost of serving customers in the inner cities and in remote rural areas. Provide direct state subsidies to help extend service to communities with no high-speed Internet service or no choice of providers. The money would come from new fees on telecommunications services totaling about $500 million a year. Drop restrictions on municipalities starting their own cable TV or telephone services if they have no high-speed Internet service or have a single company setting rates and service levels. Withdraw most city regulation of cable television. The plan would allow cities to continue to collect 5 percent cable TV fees and to require public-access channels but would leave overall regulation to the state. "The Ventura administration believes that whether high-speed data signals are delivered over a cable hardwire, telephone or wireless network should be irrelevant in determining which regulatory framework governs," the report said. Industry reaction "It was nice to hear as much talk about outstate Minnesota as the metropolitan area" in the proposal, said Mike Olsen, general manager of Crystal Communications, a telephone company based in Mankato. "Economic development for the state really depends on outstate Minnesota as well as metro Minnesota." Said Jim Smiley, U S West regional vice president of public policy: "If I read through it three times and still don't understand it, it's probably too complex. The regulatory framework they've set up looks more complex than what we have now." Brian Dietz, director of communications at MediaOne, a Twin Cities provider of cable and Internet services, said the Ventura proposal seemed to create a second layer of regulation for cable companies, adding state oversight to city franchise rules. Dietz bristled at "open access" passages in the proposal. "That indicates to us a movement towards forced access or government regulation of the Internet, which we strongly oppose," he said. The Minnesota Telephone Association said in a prepared statement that the group would form its own panel to advise the Legislature on changes in telecommunications laws and regulations. It suggested that Ventura set up regional task forces of parties with a stake in telecommunications to advise on changes. "It's time to look at the telecommunications laws and regulations that were originally enacted 85 years ago," said Michael Nowick, executive secretary-treasurer of the trade group. Consensus won't be easy The sweeping vision of the Ventura administration is likely to be only the opening gambit in obtaining political consensus on dealing with statewide telecommunications. Reaching agreement on how to deal with converging telephone and cable TV technologies will be a daunting task. It will involve reconciling competing public and private financial interests, ensuring that rural Minnesota is not left out of the Information Age and finding common ground on government's role. "This has every bit as much importance as education policy, health policy or transportation policy in the state," said U S West's Smiley. "Moving information around the state and between states may have as much to do with the future of Minnesota as building more highways or more schools." The way communications technology has changed in recent years raises difficult questions. Should the free market choose which communities hold the potential for profit? Many fear that small, remote communities could be left without telephone switching stations and cable TV access, in that case. Without the infrastructure of an "information superhighway," the population of rural Minnesota will decline even more sharply in the future than in the past, Dean Barkley, Minnesota planning director, said in a forum earlier this year. However, advocates for free enterprise, including independent telephone companies, say their industry already has spent $320 million in private investment to upgrade communications facilities around the state, stringing more than 20,000 miles of fiber-optic cable. More investment could come with the help of public subsidies, Smiley said. A state fund earmarked for "universal service" could ensure that companies provide service for all customers, even those remote from what Internet providers view as more profitable population centers, he said.