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May 1, 2000

Committee approves high speed Internet access deal

High-speed Internet access for unincorporated King County residents surged past a major roadblock, following unanimous approval of a measure by the Metropolitan King County Council’s Utilities and Technology Committee today.

The deal, if approved by the full council, could deliver the high-speed Internet service to nearly 400,000 thousand unincorporated area residents within the next four to six months. In addition, the measure would ensure that residents receive the best possible deals on all cable and Internet services, and could protect King County from future litigation. Specifically, the agreement would grant a two-year conditional transfer of the TCI cable franchise to AT&T.

"Today’s action represents just one more step down the electronic superhighway," said Councilmember David Irons, chair of the utilities committee. "While unincorporated King County residents can’t claim victory just yet, they are closer to getting access to a service they should already be offered."

According to Councilmember Jane Hague, vice chair of the utilities committee, the measure represents a balanced approach that would provide citizens with immediate access to the high-speed Internet service, while taking market demands for fairness and access into account. "Technical jargon aside, this agreement delivers the service that residents have so far only heard about. Our past process, however, gave this council the tools it needed to negotiate this agreement."

Under the measure, citizens who sign up for the AT&T service will have a choice of Internet service provider (ISP). The agreement also gives the county flexibility to require the company to provide full open access at any time, pending the final outcome of a court battle over the issue between AT&T and Portland/Multnomah County, Oregon.

The legislation also would:

    • Set a price cap for the service at $39.95, and ensure that residents receive reduced rates AT&T promotes elsewhere in the country;
    • Create an Expert Monitoring Panel (EMP), designed to monitor the company’s high-speed Internet service. The EMP would receive quarterly reports from AT&T, to monitor whether the company is becoming a monopoly in the cable/Internet market. The reports would provide the council with the ability to impose further requirements on AT&T should the panel see any anti-competitive or monopolistic behavior; and,
    • Create a Cable Services Advisory Committee (CSAC), designed to provide citizens with a forum to discuss all service issues related to cable and Internet. The CSAC would consist of two citizen members from King County Council districts 3, 5, 8, 9, and 12.

The agreement also includes provisions to help bridge the "digital divide," a very real split between the electronic haves and have-nots. Under the agreement, King County would receive five percent of the company’s gross revenues from cable services, and the company would provide and install computers, high-speed Internet access and additional hardware, for two schools in King County. In addition, AT&T would provide 100 hours of expert assistance to help train area teachers.

The full council is scheduled to hold a public hearing on the measure on Monday, May 8. A final council vote is scheduled for Monday, May 15.

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