Memorandum

To: City Cable Negotiating Committee

From: Robert D. Carlitz, Executive Director

Date: April 8, 1999

Subject: An Extendable I-Net

Over the past few months, a group of local community leaders, including representatives of community groups, the School District, the libraries and hospitals, has been discussing the communications needs of the public, in anticipation of the upcoming franchise renewal negotiations with TCI and AT&T.

In the course of those meetings, it has become clear that these groups have needs for affordable, high bandwidth services and that the needs are not being met by current service providers. These groups are dispersed throughout the City's neighborhoods, beyond the downtown area where traditional telecommunications service providers build the necessary facilities. In particular, we have discussed the opportunities presented by an institutional network (I-Net) to address these needs.

We are continuing those discussions to gain a clearer idea of the type of system that might best address the needs, and we have been expanding the discussions to a broader range of institutions to assess both their needs and their interest in participating in such a project. Nevertheless, to date, it appears that the following alternatives would be a good starting point for a system that serves these needs:

1. Extendable I-Net. It appears that the City is seeking an I-Net that will serve a certain number of City facilities (Basic I-Net). While we are not aware of the details of the City's plans, the idea appears to be a good one for the City. TCI would install fiber dedicated to the City at the same time as TCI is installing fiber for the commercial system. The fiber can be used to provide an ATM fabric upon which the City can operate its internal communications network. This would fit well with the City's existing information infrastructure.

We recommend, however, that the I-Net also be designed (i) to provide sufficient capacity in the fiber backbone to serve the additional communications needs of community groups and institutions, (ii) that the points where the fiber runs of the Basic I-Net terminate (at City facilities) be designed to enable these additional users to connect to the network, and (iii) that the termination points be sufficiently dispersed to enable connections in each of the City's 88 neighborhoods. These connections could be funded through an additional capital grant from TCI and/or from other sources.

2. Comprehensive I-Net. As an alternative, the I-Net could be designed from the outset to extend fiber in a cost-efficient manner to all participating institutions. Such a system would be funded partially by TCI and partially by funds from the institutions. A system as complex as a comprehensive I-Net, however, might be difficult to design in the short time frame available for the present cable negotiations. An Extendable I-Net would allow the growth of a Basic I-Net into a more comprehensive system.


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