POLICY REPORT
INFORMATION TECHNOLOGY - TELECOMMUNICATIONS
Date: July 18, 1996
TO: Vancouver City Council
FROM: General Manager of Engineering Services and General Manager of
Corporate Services
SUBJECT: Telecommunications Policy and Deployment of Broadband Network
RECOMMENDATION
A. THAT the City recognize the increasingly important role that
telecommunications plays in the economy of Vancouver and adopt
a leadership position in this area by approving the following
Telecommunications Policy goals:
- Facilitate rapid deployment of advanced telecommunications
services, not only to support City operations but to
facilitate communications between the City and its citizens
and its businesses;
- Encourage the development and use of advanced
telecommunications services to stimulate broader and deeper
participation in local government;
- Work towards making access to advanced telecommunications
services equitable and affordable to all citizens and
businesses;
- Develop, use and promote advanced telecommunications
services to allow for more efficient delivery of City
services;
- Ensure that the City maintains its authority to regulate
equitable access to rights-of-way, secure valuable
compensation for their use, minimize negative impacts
associated with their use, and utilize them in a manner that
furthers other telecommunications policy objectives; and,
- Influence the regulation of telecommunications in Canada to
the benefit of municipal government and its constituents.
B. THAT the General Managers of Engineering and Corporate
Services be authorized to explore alternative business models
for creating a broadband telecommunications network through a
"Request for Information" to be distributed immediately to
potential partners in the telecommunications sector, with the
results and staff recommendations reported back to Council for
consideration.
CITY MANAGER'S COMMENTS
The City Manager RECOMMENDS approval of A and B.
COUNCIL POLICY
There is no existing policy applicable to this matter.
Council is the appropriate body to establish corporate policy in the
telecommunications area.
SUMMARY
This report arises out of the feasibility study conducted by Teleconsult
on the City's broadband telecommunications network that was commissioned
by Council in 1995. Teleconsult has now reported out on the feasibility
study and its detail report is on file with the City Clerk's Office for
reference purposes.
The feasibility study examined a number of issues around the City's use
and deployment of its broadband network and covered areas such as
business trends and issues, assessment of existing and planned
telecommunications networks, telecommunications requirements, industry
regulation and the present legal framework, and finally, business and
policy models.
This present report recommends that Council adopt a Leadership policy
around the City's use and deployment of broadband telecommunications
services as the preferred choice among a number of policy models. These
models include staying with the status quo, or moving to an Operations
model or a Leadership model, all of which are explained in this report.
Staff, with the assistance of Teleconsult, have also developed policy
goals that support the adoption of the Leadership model. Both the policy
and its goals are presented for consideration in Recommendation A of
this report.
Along with adopting a leadership policy on advanced telecommunications
services, approval of Recommendation B of this report will initiate the
next step in the project through a Request for Information to outside
providers of telecommunications services. The results of this step will
assist staff in determining the most appropriate telecommunications
business model to recommend to Council in due course.
PURPOSE
The purpose of this report is to propose a telecommunications policy
that will position the City to take a leadership role (as herein
defined) to ensure that advanced telecommunications services are
deployed throughout the City to achieve a variety of social and economic
benefits, and to propose that the City formally explore private sector
interest in creating the necessary broadband telecommunications
infrastructure.
BACKGROUND
Since the late 1980s, telecommunications technologies and services have
evolved rapidly in the face of significant technological and regulatory
change. For example, there has been phenomenal growth in the following
areas:
- demand for wireless services, such as cellular, paging, mobile
radio communications and personal communication systems (PCS);
- the development of wide-area networks to connect distributed local
area networks; and,
- the explosion of a national broadband infrastructure, often called
the "Information Highway".
The Telecommunications Act passed in 1993 introduced deregulation and
competition in this industry, paving the way for traditional telephone,
cable and other companies to deliver new services. Today the majority
of telecommunications services are provided over two major
telecommunications networks - the cable television network and the
telephone network. Operators of each network have, until recently,
enjoyed a monopoly within their geographic operating area. In Vancouver,
these companies are Rogers Cablesystems and BC Telephone.
The convergence of telephone, cable TV, computing and telecommunications
technologies has created profound changes in the structure of the
telecommunications industry. Furthermore, emerging broadband services,
such as high definition broadcast television, video-on-demand, video
telephony and video conferencing, Internet access and corporate
networking require physical changes to these existing networks.
For the City of Vancouver, this has a number of significant implications
for the future, which include:
- economic competitiveness is dependent on a city's ability to
communicate with the world community. This means that all sectors
of our economy, including government and education, need ready
access to telecommunications networks. These connections will
eventually occur through all businesses,
governmental agencies, educational institutions and indeed down to
the household level, allowing the achievement of significant social
and economic benefits;
- the establishment of a telecommunications network will allow
business (including personal) and social interaction to occur
without requiring people to meet face to face. This will ultimately
reduce the demand on our transportation systems with the resulting
benefits in reduced congestion, infrastructure investments, and
pollution. It is important to note that telecommunications has the
potential to significantly reduce the number of automobile trips,
and that Transport 2021 and other studies have seen this as a
component of a Transportation Demand Management (TDM) Strategy;
- there is a growing need to conduct City business and share
information with a large, dispersed and mobile work force. In the
past, a number of individual telecommunications networks have been
built within the City to support these needs, including an
extensive mobile radio network and underground cable network.
Facilities and services have also been leased to augment the City's
networks. While these networks have provided good service for many
years, they do not service many key City locations, such as
libraries and recreational facilities. There are also emerging
requirements to conduct City business electronically for mobile
emergency and operational services using text and graphical data.
Moreover, advances in telemetering systems offer the potential for
the City to join with other agencies in areas such as automated
meter reading;
- the City needs to communicate more effectively with its citizens.
Enhanced telecommunication capabilities provide an opportunity to
conduct business and deliver some services seven days a week, 24
hours a day. This can take the form of new points of access at
community-based locations (shopping centres, fire stations,
schools, etc.) and could ultimately provide direct connections into
the home. This would also enable direct feedback by citizens on
issues of public policy;
- the City presently owns and regulates the use of the street and
lane rights-of-way which are shared by many users, including the
telecommunications companies. With an increasing number of entrants
to this field it becomes most critical that this limited resource
is adequately controlled and regulated. Unlimited, indiscriminate
access will result in prematurely failed street pavements and
congestion to the rights-of-way, which would limit access for other
needs, increase maintenance costs on other underground utilities,
and increase inconvenience and disruption to the public; and
- the City must also preserve the right to generate revenues to
adequately reflect the cost to administer, maintain and operate the
City's street and lane system, noting that the CRTC has already
given municipalities the right to regulate and recover these costs.
In light of all of the foregoing, City Council approved the engagement
of a consultant (Teleconsult) to conduct a feasibility study around the
requirements for a broadband telecommunications network to support the
City's internal telecommunications requirements and communications with
its citizens, and to provide policy options for the development of such
a network. The consultant has now reported out on the feasibility study
and a copy of its detailed report is on file with the City Clerk's
Office should Council wish to reference that material.
DISCUSSION
The remainder of this report outlines the telecommunications policy
options explored by the consultant, the proposed goals and action plans
around adopting a leadership policy for the City, and the benefits,
risks and next steps to complete the project.
POLICY FRAMEWORK
The following principles guided the development of the leadership
policy for telecommunications services that is being proposed in
this report.
- The City recognizes the role that telecommunications plays in an
emerging information-based economy.
- The City will play an active role in the deployment of
telecommunications services in the city by leading by example in
its use of advanced services.
- The City is in a unique position to shape the deployment of these
services in Vancouver by exerting influence through its purchasing
policies and practices.
- Broadband telecommunication services are an essential part of the
municipal infrastructure and cities have a role to play in their
planning, deployment and use.
- Cities should receive compensation for the use of public
rights-of-way from all users, including telecommunications service
providers.
In exploring the telecommunication policy options available to Council,
the consultant developed three broad approaches to consider.
1. The Status Quo Option
This model supports maintaining the City's present telecommunications
operation. The result is the use of telecommunications services for
routine operational purposes with the introduction of advanced services
based on clear and definable cost savings.
2. The Operations Option
This model is more aggressive as it views advanced telecommunications
services as a requisite to the delivery of City services and to the
day-to-day operations of the City. Some departments of the City have, or
are moving to this model (e.g. EOCC operations, the Vancouver Public
Library, Integrated Service Teams to name a few). In this model, the
City has a broad and coherent view for the role of advanced
telecommunications services, and identifies and implements opportunities
where these services make its operations more effective and efficient.
While the scope of this model is limited to traditional City functions,
it offers many benefits as realized by other innovative public and
private sector organizations.
In this model, the rationale for the telecommunications network is the
applications that run on it.
3. The Leadership Option
This model includes all the aspects of the Operations model but extends
the scope of the City's role to ensure that advanced telecommunications
services are deployed throughout the City to achieve a variety of social
and economic benefits. The City will take on an active role to foster an
emerging information economy
to promote the following outcomes:
- stimulate economic growth by ensuring local business can
participate in the global economy;
- allow citizens more involvement in government;
- support public safety;
- improve the environment through reduced air pollution and traffic
congestion;
- improve quality of life; and,
- increase City revenues.
Unlike the Operations model, the telecommunications network drives the
applications.
In examining the three policy options, staff and the consultant
concluded that the Status Quo model reflected a situation which, on
several fronts, has already been advanced to the Operations model stage
through initiatives like Better City Government, Business Process
Re-engineering and Emergency Planning and Management. That model was
therefore discounted as a viable policy option around advanced
telecommunications services.
Given that the City has at least one foot in the Operations model
already, we examined a side-by-side comparison of the policy areas and
policy statements that would apply to each of the Operations and
Leadership models. A table of that analysis is shown in the report
Appendix. The main difference between these two options is the
Operations model is based on traditional City functions and the
Leadership model seeks to explore and develop new territory for
innovative business solutions using the "Information Highway".
Since adoption of the Leadership model would promote many of the
benefits that Council has previously established as a "Vision" for the
future of Vancouver, staff have developed the Goals and Action Plans
identified below in support of the Leadership option, which we believe
is the most appropriate direction for the City.
GOALS AND ACTION PLANS
GOAL 1: Facilitate rapid deployment of advanced telecommunications
services, not only to support City operations but to facilitate
communications between the City and its citizens and its businesses. ACTION PLANS:
The City will be a leader in planning and deploying advanced
telecommunication services for its own use by:
- developing a long-term plan based upon the broad scope of the goal;
and,
- seeking to participate in the planning process of the major
carriers.
The City will be a leader in stimulating advanced telecommunications
services that support the development and betterment of life in the City
by taking the following actions:
- involving citizens and businesses in identifying needs/benefits
associated with advanced telecommunications services; and,
- becoming a facilitator and broker in the deployment of new
telecommunication services in the city.
GOAL 2: Encourage the development and use of advanced telecommunications
services to stimulate broader and deeper participation in local
government.
ACTION PLANS:
The City will use telecommunications services and technologies to
improve the effectiveness of participation by all constituents in local
decision making by:
- allowing its decision making processes to accommodate input through
various real and non real-time electronic methods;
- making information about government available in a variety of
electronic formats; and,
- ensuring technology is accessible to all citizens as practicable.
GOAL 3: Work towards making access to advanced telecommunications
services equitable and affordable to all citizens and businesses in the
city.
ACTION PLANS:
The City will undertake necessary actions to provide for equitable
access to advanced telecommunications services to residents and
businesses by:
- involving itself in carrier relations and planning; and,
- using its purchasing power where appropriate as leverage in
obtaining the necessary resources and equipment.
GOAL 4: Develop, use and promote advanced telecommunications services to
allow for more efficient delivery of City services.
ACTION PLANS:
The City will play a leadership role in the deployment of
telecommunications technology where appropriate to deliver and improve
existing services by:
- using telecommunications technology to deliver City services and to
expand the scope and reach of these services;
- identifying new service applications wherever possible; and,
- expanding customer service in new dimensions. For example,
providing seven days a week, 24 hours a day availability.
GOAL 5: Ensure that the City maintains its authority to regulate
equitable access to rights-of-way, secure valuable compensation for
their use, minimize negative impacts associated with their use, and
utilize them in a manner that furthers other telecommunications policy
objectives.
ACTION PLANS:
The City will undertake all appropriate actions to ensure that the City
has the necessary control measures to efficiently and effectively manage
its rights-of-way ("ROW") by:
- monitoring legal and contractual restraints on ROW usage;
- exercising its full legal rights in granting ROW access; and,
- setting new administrative processes for those wishing to acquire
ROW access.
The City will seek compensation for the use of and negative impacts from
the use of ROW infrastructure where prudent by:
- negotiating ROW agreements that provide telecommunications benefits
for the City and its citizens.
GOAL 6: Influence the regulation of telecommunications in Canada to the
benefit of municipal government and its constituents.
ACTION PLANS:
The City will strive to influence telecommunications regulation to
promote the provision of services to expand city infrastructure by:
- becoming an active intervener at CRTC hearings;
- developing internal regulatory expertise independently and jointly
with FCM; and,
- coordinating with the provincial government and UBCM.
BENEFITS TO THE CITY
The development and use of advanced telecommunications stimulates
economic growth by allowing business to participate in the global
economy, allows the City to deliver services more effectively and
efficiently, allows more involvement in government by its citizens,
supports public safety, improves the quality of the environment through
reduced air pollution and traffic congestion, improves the quality of
life for all residents, and, importantly, increases the City's revenues.
The deployment of a broadband network is key to many of the recent
innovative City initiatives under way in the following areas.
- It supports the objectives of Better City Government by using
telecommunications to more effectively and efficiently deliver
services to the public.
- It helps realize the vision of Vancouver as described in CityPlan
by allowing greater communications among citizens and between
citizens and decision makers.
- It recognizes that the success of the Integrated Service Teams is
based on members' ability to communicate by making a range of
telecommunications services available to them.
- It supports the further devolution of police services to
communities.
- It functions as a building block to support the outcome of business
process re-engineering projects.
As the City links its internal computer networks with external networks,
significant new benefits can be obtained from new ways of conducting
routine business activities.
- Paperless exchange of requests for proposals, purchase orders,
invoices and payments ("electronic commerce") can reduce
administrative expenses.
- Access to worldwide educational resources, ranging from university
faculty to municipal libraries to federal data bases, can reduce
the costs of acquiring technical and research services and
resources.
- Conducting routine transactions, such as filing building permits
electronically, can reduce staff time and improve service to the
public.
IMPLICATIONS AND RISK
The financial implications of adopting a leadership policy versus other
policies, or maintaining the status quo, are difficult to quantify as
the City is likely to expend more money on telecommunications services
in the future, regardless of which policy position it takes. Staff
suggest, however, that the cost to the City to expand its
telecommunications services will likely be less following the leadership
policy than it would be with the other available options.
The adoption of a leadership policy has some organizational implications
as well. Currently, the experience to assist the City in implementing a
telecommunications policy does not reside in the
City. While the responsibility for this task would be placed in the new
Information Technology Department, it is likely that a new position will
be required within the Information Technology Architecture and Planning
division in that department. This requirement would, in any event, be
reported back to Council for approval at the appropriate time.
Council should also be aware that the adoption of a leadership policy
will receive considerable attention from the telecommunications
industry. While the vendor community will initially see immense
opportunities for enhanced business, those who are not selected,
especially the traditional suppliers of these services, may react
adversely. The generation of controversy is not the object of adopting a
leadership policy but the City's best interests will likely be served
through a single partnership/association with a major player in the
industry nonetheless. On the other hand, we note for Council that
partnerships with a single firm may bring associated business risks
along with the rewards, and this assessment will be reported to Council
at the appropriate time.
OTHER JURISDICTIONS
There are a number of municipalities which have taken an aggressive role
regarding ensuring that telecommunications services are deployed
throughout the City. Seattle has signed a Memorandum of Understanding
for a non-exclusive franchise agreement with its existing cable
franchisee that will require the cable operator to upgrade its network,
conduct high speed Internet trials, provide a number of educational and
community channels, and give the City 5% gross revenue. San Diego
recently issued a Request for Proposal for a private-public partnership
to develop and operate a private virtual network to serve all the needs
of the City. It is expected that San Diego will take an equity position
in the network, will act as the "anchor tenant", and will offer access
to its rights-of-way.
In Canada, Vaughn, Ontario recently signed an agreement with Shaw which
will provide a high-speed broadband network in that community. Recently,
Calgary allowed a private sector firm to install fibre optic cable in
city-owned duct. Calgary will lease the fibre back to that company, use
the fibre for its own purposes, and sell spare capacity to others.
Montreal has laid fibre throughout the City and requires carriers to
lease capacity directly from the City.
The foregoing are examples of the kinds of partnership/business
arrangements that can be negotiated with the private sector and are
included for illustrative purposes only.
NEXT STEPS
In terms of developing an overall telecommunications plan for the City
(the "Project"), the consultant has now tabled its Feasibility Study
report, outlining policy options around the deployment of a broadband
network.
This present report submits for Council consideration a Leadership
policy recommendation arising from that feasibility study.
The next step in the Project is to determine what types of business
alternatives are available to the City and what range of
telecommunications services the outside providers are willing to offer
to the City. This step will be reflected in the issuance of a Request
for Information ("RFI") and the subsequent evaluation of the responses
with a report back to Council on the results.
This present report submits for Council consideration a recommendation
on proceeding to the RFI stage immediately.
The third step in the Project will take the input from the previous step
and complete a detailed network design and budget that will allow the
City to issue a Request for Proposal, again for subsequent evaluation
and report back to Council.
We expect that the entire Project will not be completed until later next
year.
CONCLUSION
Appropriate access to the emerging Information Highway will position the
City, its citizens and its businesses to prosper in a global
marketplace. This will bring new educational opportunities to local
schools, improve the delivery of municipal services, streamline
internal operations and improve the local environment through reduced
traffic congestion and air pollution, the latter
two being laudable goals in themselves.
Adopting a telecommunications policy that positions the corporate City
of Vancouver as a leader in the deployment and use of advanced
telecommunications services can result in significant social and
economic benefits. Exploration of potential private/institutional
partner interest in the deployment of a broadband telecommunications
infrastructure will assist the City in selecting the course that
maximizes these benefits.
The recommendations of this report support taking the next step in that
direction.
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