ADMINISTRATIVE REPORT

                                      Date:  February 24, 1997
                                      Dept. File No.
                                      CC File No. 1203-1

   TO:       Vancouver City Council

   FROM:     General Manager of Engineering Services

   SUBJECT:  Municipal Access Agreement with Broadband Solutions Network
             Inc.



   RECOMMENDATION

        A.   THAT the General Manager of Engineering Services and Director
             of Legal Services be authorized to conclude negotiations of,
             and execute and deliver, a legal agreement with Broadband
             Solutions Network Inc. incorporating the general terms and
             conditions outlined in this report and such other terms and
             conditions satisfactory to the General Manager of Engineering
             Services and the Director of Legal Services.

        B.   THAT Broadband Solutions be permitted to install and operate a
             fibre optics network in the City of Vancouver once it has
             executed a legal agreement with the City of Vancouver and
             performed any preconditions to such installation and operation
             as are set out in such legal agreement.


   COUNCIL POLICY

   Execution of legal agreements by the Director of Legal Services requires
   Council approval.  

   The terms of this agreement are consistent with the Telecommunications
   Policy as adopted by Council on July 30, 1996.


   PURPOSE

   This report seeks Council approval to permit Broadband Solutions to
   install a fibre optic network in the City of Vancouver subject to the
   execution of a Municipal Access Agreement by the General Manager of
   Engineering Services and the Director of Legal Services; the general
   terms and conditions for which are described in this report.



   BACKGROUND

   In adopting the Telecommunications Policy in July of last year, the City
   formally recognized the increasingly important role that
   telecommunications plays in the economy of Vancouver.  The City
   committed to facilitate the rapid deployment of advanced
   telecommunications services, to encourage the development and use of
   such services, and to work toward making access equitable and
   affordable.   The City further committed to maintain its authority to
   regulate equitable access to rights-of-way, secure valuable compensation
   for their use, and minimize negative impacts associated with their use.

   Consistent with this Telecommunications Policy is the introduction  of
   competition into the Vancouver market.  On January 28, 1997 Council
   authorized staff to execute a Municipal Access Agreement with MetroNet,
   a telecommunications company and potential competitor to Broadband
   Solutions.  Bringing more competition to Vancouver has the potential to
   improve the affordability and accessibility of advanced
   telecommunications services for all sectors of the economy. It will
   further help position Vancouver as a world class business environment.

   Broadband Solutions is a Vancouver-based telecommunications company that
   provides broadband and other advanced telecommunication services to
   commercial and institutional customers.  The company will offer local
   private-line services special access digital communication services,
   advanced high speed data communication services and switched services,
   all running over fibre optic networks.  Broadband Solutions is starting
   its network operations in Vancouver and plans to provide similar
   telecommunication services across Canada with future expansion into the
   United States.


   MUNICIPAL ACCESS AGREEMENT

   Broadband Solutions has approached the City for permission to install a
   fibre optics network for the provision of telecommunication services
   throughout the City of  Vancouver. Staff started discussions with
   Broadband Solutions late in 1996 and anticipate that this Agreement will
   contain similar terms and conditions to those in the Metronet agreement. 
   In summary these terms and conditions are:

   TERM:          20 years.

   TAXES:         Broadband Solutions to pay all municipal taxes and all
                  other City-imposed fees, such as those for parking
                  clearance, temporary special zone and other permits
                  except encroachment fees under the Encroachment Bylaw.




   LICENCE  FEE:  2% of the gross revenue attributable to Broadband
                  Solution s fibre optic network within Vancouver as set
                  out in the agreement.

   DARK  FIBRE:   Within each backbone fibre optic cable installed by
                  Broadband Solutions (which excludes the connections
                  running from the street to a private customer's site),
                  the City will receive a licence to use four fibres for
                  its own use.  The licence will be for 20 years at a
                  nominal fee of $1.00 per year.

   RELOCATION:    Costs of relocating the fibre optic cable where required
                  by the City would be borne by Broadband Solutions.

   LIABILITY:          The City would not assume liability for loss or
                       damage to the cable or Broadband Solutions s
                       operations, except as set out in the agreement.

   OTHER TERMS    Any other terms and conditions as are deemed
   AND            acceptable or necessary by the General Manager
   CONDITIONS:    of Engineering Services and the Director of Legal
                  Services.


   Broadband Solutions is anxious to proceed quickly with installation and
   will commence construction as soon as the municipal access agreement is
   executed.


   IMPACT OF THE REQUEST FOR INFORMATION FOR BROADBAND SERVICES

   On July 30, 1996, staff reported to Council on the potential of
   establishing a partnership arrangement in the provision of
   telecommunication infrastructure.  As a result of Council's
   support, a Request For Information (RFI) was issued on October 31, 1996,
   to determine interest in this partnership by telecommunication interest. 
   The RFI closed on November 29, 1996, and Broadband Solutions has
   indicated an interest by responding.  A progress report on this issue
   along with recommendations for proceeding will be before Council
   shortly.

   It is not expected that the Municipal Access Agreement with Broadband
   Solutions would impact the RFI for the following reasons:

        -    No commitments will be made to Broadband Solutions
             in the municipal access Agreement with regard to
             City telecommunications.

        -    The RFI is not intended to grant exclusivity in the
             use of public right-of-way.  Even if Broadband
             Solutions is unsuccessful in the RFI, they would
             have rights to access the City's rights-of-way.


   CONCLUSION

   Staff recommend that Council allow installation of the fibre optic
   network to proceed subject to the execution of a Municipal Access
   Agreement to the satisfaction of the General Manager of Engineering
   Services and the Director of Legal Services.



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