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in 95 IDJ\ 15:~5 FAX @006 :Mr. Dan Wall August 1 0, 1998 Page 4 po:;itions I\1ediaOne to meet the needs and challenges of competitwn 4S well as the flexibility to pursue the opportunities which are likely to present themselves over the ne>.1: several years. IN TERCONNECTION Our system sen..icing the ten cities of the North Subwb Cabie Conlmurucatlons Corn111ission is fully integra.ted and interconnected and can be thought of, esser1t1ally, as "one system". Furthermore, the franchise commits us to make available fur interconnection purposes one six megahertz channel for forward pUlposes, one six megahertz channel' for return v~dco purp;,,;scs, one ~ix megahertz chanr.el for fOlward data or other purposes, and one six megahertz channel for return data or other purposes between the "Nonh Suburban System" (induding Rosevl11e) and all of the adjacent cable systems under common ownership with MediaOne This intercormection commitment, tor example, includes interconnection with the system serving the 12 cities in the Ramsey/Washington commission area, the seven cities in the North Central Suburbs commissIon an::a, the system serving the City of St. Paul, etc, Our interconnection commitment is not restricted II1t;;rely to the subscriber network Rather, the institutional net'W'orks may be interconnected_ and in fact, the institutional network serving tbe City ofRoseville and the other North Suburban ccmmuruties IS cun-ently interconnected ",,'ith the institutional network serving the Ramsey/Washington communities TechnologIcally, the mterconnectlOTl is accomplished lhrough the connection of ::he vanous "ystem'head-ends" McdiaOne' 5 engineers met with representatives of t.h_c North Suburban Commission, RamseyrWashington COIIlIJ'lissioil, Nonh Central Cornrnisslon, City of St. Paul, and the other r.1ediaOne franchising authority commissions on June 22, 1998 to outline the mterconnection technology and discuss the opponunities and issues \Vc would be happy to meet with other representatives ofRose....1l1e to discuss these issues further in the context of any particular application or opportunities. INSmUTIONAL NETWORK The renewal franchise requires a substantial upgrade: of rhe e.xi~ting lnstitutionai Network. In that regard) the Institutional Network \l;1ll incorporate a hybrid fiber coaxial architecture. Initially, the Institutional Network will include two fibers to transmit the 54 channel capacity set forth in the franchise. This will ar;:collUllodatc all existing institutional uses, and much more. Undcr the franchise, of the 54 channel capacity on the Institutional Network, the City and other institutional users may make use of three (3) channels dO\l;nstream and three (3) channels upstream for non-video uses at no charge, as well as the fun chaunel capacity for \ldeo uses at no charge. This capacity far ex.ceeds existing uses of the Institutional Network, Non-VIdeo uses beyond the three channels downstream and t..1rree channels upstream can also be used by the City or other public institutions at a rate calculated based on MediaOne's actuai cost plu.:; a 4S% mal gin or the "most favored 2122636-1 tl.ii-'~~