The Village of Deerfield is a residential community located just 21 miles north of the Loop with a population of 17,325 (per the 1990 census). Over the last 15 years, Deerfield has developed a robust and thriving business presence (corporate headquarters for Walgreens, Nutrasweet, Baxter Health Care, Jim Beam to list a few) along the Lake-Cook corridor which brings in some 45,000-50,000 commuting employees each day. Additionally, current development will most likely increase Deerfield's population to about 18,500 within the next few years.

Several years ago. Deerfield completed a survey which was commissioned to assist in the Village's ascertainment process during our cable franchise renewal. Upon completion, the Village was shocked to find that 72 percent of Village households own a computer, 44 percent own a modem and that 26 percent subscribe to some form of on-line service. Of the 5,800 households receiving the survey, over 1,800 were returned representing a 31 percent participation rate (more than enough for a good representative sample). Clearly, one can see the potential demand for the various telecommunications gadgetry within a community like Deerfield.

In June and September of 1994, two memorandums were distributed outlining the need to develop a telecommunications ordinance in an effort to be prepared prior to the flood of telecommunication entities seeking access into or through the community. The Village has been approached by various telecommunication entities over the course of the past several years seeking to provide some form of telecommunications service to many of the businesses and some of the residents. Each of those reports concluded that federal efforts currently underway resulted in a host of uncertainties as in how to proceed in drafting a telecommunications ordinance. It was therefore decided to abandon the drafting of a telecommunications ordinance until such time as Congress clarified those rights pertaining specifically to local governments (e.g. the preservation of local authority to manage public right-of-way, to receive fair and reasonable compensation for their use, and the protection of local zoning and taxing authority from federal preemption). In the interim, staff and Village counsel, under the recommendation of the Cable & Telecommunications Commission, drafted a telecommunications application process for those telecommunication entities presently seeking access into the community — until such time when a telecommunications ordinance could be adopted.

Early last month, on February 8, 1996, President Clinton signed into law the Telecommunications Act of 1996 which represents the most sweeping changes in the telecommunications industry in its 62-year history. As remarked in the National League of Cities newsletter, "The telecommunications law will substantially rewrite U.S. telecommunications law, impacting how Americans get cable TV, telephone and computer online services and what price they pay for them." Of the major concerns affecting local government, Congress has preserved the rights of local authorities to manage their right-of-way, to receive a fair and reasonable compensation, and the protection of local zoning and taxing authority from federal preemption. However, in the area of wireless direct broadcasting services (DBS), the federal government retains all regulatory control.

Now that the telecommunications bill has been signed into law, local governments will be scurrying about to develop and adopt a telecommunications ordinance governing how telecommunication entities are to be treated. In early 1994, no one was really clear as to how this telecommunications technology would be used, or how the various telecommunication markets would evolve, but one thing was very certain, for any of this to be at all successful, the public rights-of-way would have to be accessible to them. During much of the legislative fight in Congress, telecommunication entities sought preferential treatment that would have removed all state and local barriers (i.e., removal of franchise fees, and the provision of unlimited access into public rights-of-way free of charge — in short a federal preemption from local controls) in order to quickly deploy their various technologies.

Deerfield has been active through its membership with the National Association of Telecommunication Officers and Advisors (NATOA), in lobbying our congressional representatives to fend off those challenges

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from the telecommunications industry over the last two and a half years. Initially, the White House, and a majority of politicians from both houses of Congress, supported the preemption of State and local jurisdiction regulatory controls. However, by the intense lobbying efforts by municipalities such as Deerfield, we were able to preserve the rights of municipalities which, had it gone the other way, would have amounted to one of the biggest government giveaways since the days of the great railroad land grants during the latter part of the 19th Century. Now that the boundaries have been drawn (between local jurisdictions and telecommunication entities), municipalities should expect a flood of requests from a host of telecommunication services seeking access into their communities (to provide service), and/or through (as pass through operators), from entities such as Ameritech (seeking to provide long distance and cable service), AT&T (seeking to provide local access and possibly cable service), Commonwealth Edison (possibly seeking to provide cable, local and/or long distance phone service), and the local cable provider (seeking to provide local and/or long distance service), not to mention the other telecommunication entities that will be seeking to provide some type of proprietary service. In short, over the course of the next 12 months, telecommunication service providers, be they cable, phone, computer, or electric, will be expanding their respective markets, broadening their base of service, merging with larger telecommunications service providers, and trying to survive in an industry spun into a virtual state of flux. In the middle of this mass communication/confusion, local jurisdictions must provide a framework by which these entities make application for access into their communities, and how communities derive revenue from such operations. While the local jurisdictions have retained their regulatory abilities, the new law prohibits local jurisdictions from refusing access to any telecommunications entity and requires that they all be treated equally. This brings us back to the drafting of a telecommunications ordinance which the Village abandoned a year and a half ago.

Several years ago, the Northwest Municipal Conference, the West Central Municipal Conference, the DuPage Mayors & Managers Conference, along with the South Suburban Mayors and Managers, and with the assistance from the local chapter of NATOA, combined their efforts to develop a Model Telecommunications Ordinance (MTO). The purpose for the development of the MTO was to assist the region in developing a model telecommunications document for the purpose of establishing "a level playing field" for those telecommunication entities seeking access within any community. For those municipalities unaware of the activities surrounding the telecommunications industry they should contact one of the above groups for a copy of the Model ordinances. Municipalities must realize that telecommunications at the local level is no longer limited to the franchising and use of cable television to deliver clearer television reception and more program services. Advances in cable, telephone and computer technology have led to a flood of new communications services and technologies, such as sophisticated personal communications systems and cellular systems, locally-based cable programming, institutional networks, internet, World Wide Web, and BBS information services. The result is unprecedented services to citizens, delivery of communication services, and significant improvement in local administration.

At the same time, major changes in the regulatory environment for both industries give local officials a tremendous new challenge: effectively integrating cable and telephone technologies into a complete telecommunications infrastructure while preserving local authority over and revenues from public rights-of-ways. At this year's NATOA conference (scheduled for June 5, 1996), the local chapter will provide nationally renowned authorities to provide information on the impact that the telecommunications act will have on local governments. Given the sweeping federal legislation recently passed, this year's NATOA conference committee will expect a much larger than normal participation. For further information on the conference, contact Dough Kozlowski (e-mail address dkozlow@synet.net), Cable TV Coordinator, Village of Downers Grove. For more information about Deerfield contact Gerald C. Smith (gsmith5131@aol.com). •

Page 18 / Illinois Municipal Review / April 1996