5.3. ERMUSR 07-11-2006.^~/
Elk River ^-~
Municipal Utilities
13069 Orono Parkway
Elk River, MN 55330
July 6, 2006
To: Elk River Municipal Utilities Commission
Jerry Takle
Jim Tralle
John Dietz
From: Bryan Adams
Subject: Community Internet System
phone: 763.441.2020
Fax: 763.441.8099
The last couple of commission meetings have included discussions regarding a community wide
broadband Internet system. Currently there are 3 players in this market in Elk River. They are
Qwest, Charter Communication & Northstar Access. Apparently between these 3 providers, Elk
River does not have the desire level of broadband Internet service.
If it is this commissions desire to facilitate adequate community wide broadband service, the
following decisions need to be made:
1) Assess the Elk River market
a) Who are the current providers of voice video and data services
b) Is there an unmet need
c) Are people happy with their providers
d) Is the market big enough for competition
e) Is the risk worth the reward
2) Develop a business plan
a) Define what technology to be used. Wireless, fiber to the home, copper
system, power line carrier, etc...
b) Cost estimates for construction
c) Financial Assessment
d) Legal & regulatory issues & fees
e) Develop appropriate agreements/contracts
f) How to finance and cost of financing
g) Possible benefit to existing utility services (SCADO, AMR, Load Management)
Northstar Access is a major player in Elk Rivers Internet infrastructure. Bob Pearson and I have
had a couple of meetings with Northstar Access to try to identify common areas where we can
partner and make broadband Internet service available to all of Elk River. There appears to be
interest on their part to pursue a pilot project in northern Elk River using wireless technology
where fiber is already present to injection points. The large antenna at the intersection of Co Rd
33 & Proctor Av, which is owned by GRE, is an ideal site. In preliminary conversations with
GRE, they are agreeable to a lease arrangement on this antenna. From this antenna, the system
could cover a 2 to 3 mile directional radius as shown on the attached map. We are still in the
process of identifying costs, revenue and area of responsibility between Northstar Access and
ourselves for a pilot project. I will update you farther at our meeting
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