Conversation with Denver Office of Telecommunications

["Ashley Schannauer" <schannauer@info-ren.org>]

I talked with Darryn Zuehlke, Assistant Director of Denver's Office of
Telecommunications last week. Denver has not started any work yet. The
franchise agreement must be approved in a referendum this Fall.  He said the
City estimated it would cost $5 million for the City to build the system the
City wanted (if the City were to do it on its own), but they expect the cost
will be substantially less if TCI does it while TCI is installing its
system. The agreement provides for Denver to pay the incremental costs.

But the City does not have an idea what those costs will be right now, at
least that's what he said. He said the installation of the I-Net will occur
on a gradual process.  As TCI proceeds throughout the various sections of
the City, TCI will prepare plans and cost estimates, and the City will, at
that time, determine whether and how much to build in each such section for
the I-Net.  Similarly, the City does not know at this time how much it will
cost to maintain the system.

One interesting feature is that, unlike the agreement in King County (in
which the County leases the distinct fiber from TCI and nothing is said
about the County's right to use the fiber at the end of the term of the
franchise agreement), TCI agrees that Denver will have the continuing right
to use the I-Net fiber even after any future termination of the franchise
agreement.

The funding of the I-Net is similarly dependent upon how much is built.  TCI
makes ongoing capital contributions under the franchise agreement for
"Public Access" (PEG access), which amounts can be used, at the City's
discretion, for community access or for the I-Net.  Any additional amounts
required for the I-Net will come from the City, not TCI.

According to Zuehlke, the amounts contributed by TCI actually represent a
continuation of the levels at which TCI had been funding community access in
the past (approximately $1 million).  As a result, funds used for the I-Net
will be deducted from the amounts that could be used for community access.

The per-customer amounts of the capital contributions may appear on customer
bills.

He said the I-Net will be used for high-speed data communications  by the
City, the School District, the Univ. of Colorado at Denver, state government
and non-profit groups.

Ashley Schannauer