WATERLOO - A survey of the city's business community found a strong demand for a better telecommunications system in Waterloo.

And while employers believe the city is responsible for helping secure more broadband capacity, they aren't keen about local government owning and operating the network that delivers their Internet, telephone and cable television services.

The city's Municipal Telecommunications Utility Board last week received the online survey conducted by Strategic Marketing Services. The Greater Cedar Valley Alliance economic development organization commissioned and spearheaded the report at the MTU's request.

"The vast majority of participants, over 80 percent in both instances, believed Waterloo needs to make improvements to its current telecommunications services to greatly increase the community's ability to attract and retain more businesses and that it is very important that Waterloo takes action to ensure improved telecommunications for businesses in the community," the report stated.

But the survey also found "slightly less than one-fourth of the respondents supported the city installing, maintaining and owning the necessary infrastructure."

Seventy-nine of the 320 Waterloo businesses asked to complete the survey responded. And 94 percent of those respondents said they expect their business will need more advanced telecommunication services within the next five years.

More than half, 55 percent, of the businesses said the city should seek out a new third-party telecommunications provider or work with existing providers - such as Qwest, Mediacom and Dynamic Broadband - to provide the added capacity and service. Less than 25 percent supported a municipally owned system.

"Clearly the respondents to this survey said a third party should be relied upon to provide the service," said Steve Dust, chief executive officer for the Alliance, who presented the results to the MTU board. "It is clear that your Waterloo businesses want you to do something and be the driver."

About 60 percent of the respondents described their Internet download speeds as fast and, on average, were "moderately satisfied" with their current Internet service provider. The survey found higher marks for the quality and consistency of the service and lower satisfaction with customer service and pricing for Internet, phone and cable television services.

Anecdotally, Dust said he has seen an increasing need for a better open access fiber network to serve businesses in the Cedar Valley.

"It is a critical component to economic development," he said. "It is a critical component to Waterloo stepping up and being competitive in the marketplace. If we are committed to be a tech-led community we've got to have the tools in place, and broadband capacity is one of them."

Doris Kelley, who chairs the MTU board, has long been saying the current providers have not met the needs of Waterloo's business community.

"Personally, this is the results I thought we would get," she said. "I think Mediacom is doing a fine job of serving the residential sector. Our problem is the business sector."

MTU board member Dave Buck added, "When 80 percent of the people say they want us to do this, we should do it."

Board members are planning to hold a work session to discuss how to proceed based on the survey results, and they're hoping to meet later with the City Council to discuss the results.

Kelley suggested the timing may be right, with funding available for telecommunication improvements in federal and state economic stimulus packages. The federal recovery act has $6 billion earmarked for broadband, while the state I-JOBS program includes $25 million to match federal funds.

The GCVA also has recommended the MTU board explore grants to increase open access fiber capacity, work toward a Cedar Valley network and to fill voids left by the private sector with nonprofit or municipal lines.See Broadband, page A6