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5.4. ERMUSR 08-22-2006~/ Elk River Municipal Utilities ~ 13069 Orono Parkway ~~ phone: 763.441.2020 Elk River, Iv1N 55330 Fax: 763.441.8099 August 9, 2006 To: Elk River Municipal Utilities Commission Jerry Takle Jim Tralle John Dietz From: Bryan Adams Subject: Community Wide Internet System The last couple of Elk River Municipal Utilities (ERMU) commission meetings we have been discussing community wide broadband Internet service for Elk River. Because Northstar Access is a reputable local provider of voice, video & data service, they were the logical people to contact. ERMU staff suggests the following 3 options to Northstar Access in providing broadband data services. 1) Northstar Access could expand their existing fiber to the home system or expanding into the wireless technology in Elk River where the population density is low, snaking fiber to the home technology to expensive. 2) Northstar Access &ERMU could partner utilizing wireless broadband technology in Elk River where the population density is low, making fiber to the home technology to expensive. 3) ERMU would provide wireless broadband data technology to Elk River At first Northstar Access was not excited about expanding into wireless broadband technology, particularly when only unlicensed frequency spectrums were available. Northstar Access again reconsidered their position knowing that ERMU would pursue wireless technology, and decided to do a pilot study. This pilot study will involve 45 customers in the Co Rd 33 area using unlicensed wireless broadband without any financial support from ERMU. This pilot study should be operational in a couple of months. I took the liberty of requesting they include Jim Tralle in this pilot study. I will keep involved in this pilot study to ensure forward progress.