1. Massachusetts Telecommunications Symposium July 26, 2004 Jim Baller The Baller Herbst Law Group, PC Washington, DC (202) 833-1144 Jim@Baller.com Public Policy – Legal Overview

2. Disclaimer This presentation does not constitute legal advice and should not be interpreted as such. For advice on Massachusetts or local law, please consult your Massachusetts counsel. Jim Baller

3. Baller Herbst - Fiber Projects Bristol, VABristol, VA Chelan County, WAChelan County, WA Crawfordsville, INCrawfordsville, IN Dalton, GADalton, GA Danville, VADanville, VA Jacksonville, FLJacksonville, FL Kutztown, PAKutztown, PA North Kansas City, MONorth Kansas City, MO Provo, UT Rockford, IL Rock Springs - Green River, WY Lafayette, LA Tri-Cities, IL UTOPIA, UT Others …

4. Cable Modems and DSL – No Big Deal! “It is important to note here that the current generation of broadband technologies (cable and DSL) may prove woefully insufficient to carry many of the advanced applications driving future demand. Today’s broadband will be tomorrow’s traffic jam, and the need for speed will persist as new applications and services gobble up existing bandwidth.” “It is important to note here that the current generation of broadband technologies (cable and DSL) may prove woefully insufficient to carry many of the advanced applications driving future demand. Today’s broadband will be tomorrow’s traffic jam, and the need for speed will persist as new applications and services gobble up existing bandwidth.” Office of Technology Policy, U.S. Department of Commerce, Understanding Broadband Demand: A Review of Critical Issues, at 6 (Sept. 2002) Office of Technology Policy, U.S. Department of Commerce, Understanding Broadband Demand: A Review of Critical Issues, at 6 (Sept. 2002)

5. Bandwidth Comparisons 100Mbps Ethernet 3.7Mbps MPEG-2 CBR VHS Quality Video Stream 20Mbps MPEG-2 CBR HDTV Quality Video Stream 64Kbps Phone Line 128Kbps ISDN 600Kbps DSL 3Mbps DSL 1.544Mbps T1 10Mbps Ethernet Work at home Educational & Medical Applications By Jonathan Moore

6. Developments at the National Level Federal law does not authorize public entryFederal law does not authorize public entry Public entities must have state and local authorityPublic entities must have state and local authority Several states currently have barriers to public entrySeveral states currently have barriers to public entry AR, FL, GA, MN, MO, NE, NV, SC, TX, UT, VA, WA, WIAR, FL, GA, MN, MO, NE, NV, SC, TX, UT, VA, WA, WI Nixon v. Missouri Municipal LeagueNixon v. Missouri Municipal League Term “any entity” in TA 253(a) not clear enough for preemptionTerm “any entity” in TA 253(a) not clear enough for preemption Not a decision on merits of municipal entryNot a decision on merits of municipal entry Municipalities have “a respectable position” on public interestMunicipalities have “a respectable position” on public interest FCC “denounced” policies behind Missouri lawFCC “denounced” policies behind Missouri law Many amici curiae supported municipalitiesMany amici curiae supported municipalities

7. National Developments (2) We did well in state legislatures in 2004, but the incumbents will be backWe did well in state legislatures in 2004, but the incumbents will be back Likely push by all sides in next 2 CongressesLikely push by all sides in next 2 Congresses Vicious battles before agencies, courts, city councilsVicious battles before agencies, courts, city councils Unstable regulatory environment – e.g., Brand X, Wireline NPRM, BPL, VoIP, IP-Enabled, UNEs, etc.Unstable regulatory environment – e.g., Brand X, Wireline NPRM, BPL, VoIP, IP-Enabled, UNEs, etc. Potential impact of electionsPotential impact of elections

8. Massachusetts Municipalities have “home rule” (with some limitations)Municipalities have “home rule” (with some limitations) Municipal electric utilities have express authority to provide telecom servicesMunicipal electric utilities have express authority to provide telecom services Municipalities can establish cable systemsMunicipalities can establish cable systems No current state restrictions on these or other servicesNo current state restrictions on these or other services Must follow procedures very carefullyMust follow procedures very carefully Must review local ordinances, bonds, contracts, etc.Must review local ordinances, bonds, contracts, etc. Municipalities can band together for joint actionMunicipalities can band together for joint action

9. Thanks!