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074"30/98 THE; 12 14 F-LY aog franchise fees. M-S.A_ § 23 ,08 1 ). Nothing in Minnesota law prevents a m un iQipaiit 7'Tom imposing tenns and co:nd.i tons in a competitive franchise thee. are more sirin ent than ose imposed in ark eX i SIbIlu -anchisee. The City is also cozitemplating Lhe provision of te;ecorn-mull icati on s s ernc es over its own fiber optic nctwork (herein " 'I Most cities considering the d e elopment of mtcm.cipally ovy-net. {ele v ors um-cations nctworks are, as is the case 1n tl�a arty: cities that currently own and operate rate e l ec c or water uti l it- An existinor mumcip ally owned utility 4-ifrastru�,turc cases mall-et entriir for Provision of uelecommur.cations i- l a.ted services- CI-ties ar xpandin� operations into telecommunications for the swine regions tlae first entered the utility bushiess. it uardcipa.litics are not seeing. the fhaits of competition promised with the adoption of the 1996 Act, p eU—C, Olaf ly m rarai areas. Telecom r ium cations companies are battlir19 Over urban turd", wt-i :re kraic volurlic is kin C, and I anorm& for now., other areas. Some nit "cipahties are no 1. i ding to wait for comp tltio;� and see municipal oivnership as j lit fastest way to bring the bmiefits 10f comp tltion to their connauni ty- 1-he current MIDn esota Public Utilities Commission ("V_, PUC") looks favorably upon Municipal ownership, espcelaRy in rural arras. F redri son & Barron recent) rcpres n tad the City of l oom ead. or an application for authority to build a PO t and prov'de relccormunications services to the public. At th.e public beam , Comm lsszoiitr Marsl fall Jobuson, jorning M the 1 PU 's ini nimous appro-val of Moionccad's application, commented on the record# 41 think what Moorhead-public r;nTice is doitzc, is xlu`Lovative and very forward-ffdnki tu. } B. Mrnnesota Law. T -econ scab on s Reg alatiorl, .12.1e Minn- csota_ PUb l i c Uti litl es poi-nmi ss i on {WTI " has exclusive -re i.ij-;o authority over the provision of "Iclecommunications service" xd '`telephon a cornp a�nies~' in the t to o f irl. esota. Minn. tat. -in, 37.02 (1-992). A '}telephone company" is any person, firn-4 association or an corporation, private or municipal, oxvnincr or op eratin anv telephunc; lime or telephone exchange for hire, wholly or partly within Wnnesota, or ftimi shing any telephone service to the public. Minn. Stat., An, § 237-01 u.bd. 2 (West Supp. 1997). No person cmi provide "'telephone service:"' in ®Minnesota without Erst obta r�g a d ttermination that the person possesses the tech cal, i-nana erial, and I'inailcial resources to provide the proposed telephone sen rices and a cert'fi cate �`authority �n� the WUC under the terms and conditions the 2vIPUC finds to be con si stern with fair and reasonable competitiop, universal service., and the provision of affordable telephojac service aL a q!"'ia.lit • consistelt With IMPUC axles, and the MFUC n les. LI. § 237.16 Subd_ �_ The tend '"telephone service'' is Outline-Roseville, r Project #2;(,,7 772_1 -7/.10/98--Pg. t I