1	MUNICIPAL WIFI: A Legal Primer
2	How Do You Get Your Internet?
3	Pros of Municipal Wireless Broadband Incumbent telephone and cable operators provide limited broadband services in the community at high rates and a municipal system would improve availability and increase competition. Municipalities can leverage such networks to obtain lower cost communications services by serving as an “anchor tenant.” Wireless networks are more cost effective than installing wire-line systems. Installing a wireless system will spur economic development and/or help retain local business and telecommuters. Political accountability will minimize the risk of wasteful decisions in constructing the network.
4	Cons of Municipal Wireless Broadband A government run system will not perform at the level of private enterprise. Once built a municipality may have an incentive to prohibit others from entering the rights of way to maintain a competitive advantage. Wireless broadband is not a “natural monopoly” similar to water and electric service and there already exists competition in the broadband marketplace. Municipalities are inefficient in adopting new technologies demanded in the marketplace. Taxpayers will be forced to finance the system and will shoulder the burden if the network fails to meet estimates.
5	Ownership Models Non-profit Private Contract Public/Private Partnership Municipal Ownership Model
6	Drafting a WiFi Agreement Scope of work Project schedule Payments/pricing Schedule of fees Service level agreement
7	Minneapolis Agreement A 10-year fixed rate of $19.95 for 1-3 megabit residential service. USI will provide $500,000 to create a Digital Inclusion Fund (“DIF”) that will be used to promote affordable Internet access, low-cost hardware, local content and training. USI will direct a minimum of 5% of the network’s net profits to the DIF for ongoing digital inclusion efforts. In total, an estimated $11 million will be provided to the DIF over the 10 year term of the contract. Free service will be available in specified public locations, such as parks and plazas in Minneapolis.
8	Minneapolis Agreement cont’d. A free “walled garden” level of service will be available to people throughout the City for neighborhood, government and community services information. Designated community technology centers will receive free wireless access. Minimum service levels must be maintained on the network or USI will be subject to enforcement penalties from the City. Mandatory wholesale requirements and pricing to encourage open access to the network. Completion of the Minneapolis network is expected by the end of 2007.
9	Enforcement Dispute Escalation procedure senior management meet Outage credits Termination right to acquire system
10	Outage Credits 2-3 hr $100/node 3 hr⁺$500/node $50,000 cap/month $250,000 cap for consecutive outages
11	100% Network Outage 60 minutes = up to $50,000/day $250,000 cap for given outage Uncured for 72 hours third party cure – operator pays termination city right to purchase
12	Service Level Agreement 1-3 Mbps 95% outdoor / 90% indoor High rise coverage may be met with other transport capability Municipal vehicle 1-3 Mbps 95% outdoor coverage Force majeure clause
13	Thank You!