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<br /> . KEY POINTS: CITIES' INTEREST IN TELECOMMUNICATIONS REGULATION <br /> 1. Cities' interest in telecommunications and utility regulation is defined by the <br /> their responsibility as trustees of the public rights-of-way within their <br /> corporate limits. As trustees of this public property, they have an obligation <br /> to ensure that the rights-of-way are managed in the public interest. These <br /> interests include: <br /> a. prohibition against red-lining (In the early 'SO's, when cable was <br /> being developed in the state, the legislature passed a very pro- <br /> gressive law which prohibited cable companies from cherry- <br /> picking cities and communities to serve. Unfortunately, U.S. West's <br /> video dialtone proposal now being considered by the FCC would <br /> effectively red-line some Minnesota communities.); <br /> b. economic development; and <br /> c. the infrastructure, distribution and support for community television <br /> programming; and <br /> . d. compensation for use of this public property. <br /> 2. This obligation is technology neutral and, therefore, extends to Mr.l provider <br /> using the public rights-of-way, including telephone and power utilities, as <br /> well as cable television. <br /> 3. Cities are often cast as obstacles to the development of information net- <br /> works and services. In fact, we are now comtemplating the recommen- <br /> dation that the franchising process be replaced with a simpler, more <br /> straight-forward permitting process. (Reference the MACTA White Paper.) <br /> We believe that the State and Federal governments have legitimate and <br /> important roles to play in the development and enforcement of minimum <br /> technical and connectivity standards and rate regulation in the absence of <br /> competition. Further, we would recommend that the State be responsible <br /> for licensing telecommunications providers, ensuring that they have the <br /> financial, technical and legal qualifications to provide tl:le proposed service. <br /> 4. An LMC task force on telecommunications is recommending that the League <br /> develop legislation that would protect cities' interests in the management of <br /> their public-rights-of way and re-structure, and simplify, the regulatory <br /> framework for telecommunications in the state. <br /> . <br />