Yet, despite the important role reserved for local governments in the development of new technologies and their infrastructure, our survey of 19 local communities in Michigan* found the overwhelming majority of them ill-prepared to meet this challenge.

In conducting the study, we visited community libraries and city halls for diverse documents including copies of ordinances, budgets, permits, and franchise agreements. As needed, we met with officials who explained local telecommunication procedures. What we found was: Most communities had no single contact for telecommunication issues. This role was often distributed among several offices. Local government officials were frequently unaccustomed to the wide range of telecommunications issues and terminology.

Since cable television franchise agreements have historically fallen under local government control, all but one local government did have very specific policies in this area. On average, the contribution of the cable franchise fee to the general city fund was 0.52%, with cable providers usually contributing between 3% and 5% of their gross revenues. (The ratio for Negaunee is high, 10.57%, because the city itself owns and operates the cable system.) Bonds are required in many communities, for security, performance, and construction. Various forms of insurance are also generally required. Most cable franchises are in effect for fifteen years and need to be renewed through an application process initiated prior to the expiration of the contract. Transfers may be allowed but require community approval.

In contrast to this regulatory structure, few local governments have well-developed interactive (two-way) telecommunication policies, Ann Arbor, Lansing, and Troy being the most advanced. Seven governments do not have any written policy at all related to interactive voice, video, and data communications services. At the time of the study, there were no wireless-specific ordinances in effect in any of the nineteen local communities, though Grand Rapids and Livonia were reviewing drafts.

Three local governments themselves own, operate or lease telecommunications infrastructure (Holland and Wyandotte as well as Negaunee). Local governments do have general procedures or policies applicable to wireless telecommunication service, commonly governed under zoning regulations. Some communities are working together to rewrite policies. Protect Public Rights-of-way from Telecommunication Encroachment (PROTEC) is a coalition of Michigan communities with the common goal of protecting local governments rights to manage public rights-of-way. Four of the surveyed communities (Dearborn, Livonia, Southfield, and Troy) are members of PROTEC.