FIBER-OPTICS BAD BUSINESS FOR GLENDALE.

Byline: Irshad Ul-Haque

Glendale city officials should consider this advice before they decide to get into the telecommunications business: Don't do it.

There's nothing wrong with government looking to enhance municipal revenues in ways that don't raise taxes. But for the city of Glendale to consider pursuing a plan to become a telecommunications provider, competing directly with private industry, is not responsible government. And it could cost residents in the long run.

Such a course could actually work to chill the technological choices residents have in the future. Moreover, it puts the city into the awkward position of being both a regulator and provider - and that could freeze competition that drives lower prices.

In work that has received little public attention, the city of Glendale has solicited bids to pursue building its own fiber-optic telecommunications network. Three companies already provide an extensive fiber-optic web that links scores of city businesses into regional networks. And the growth of those networks continues.

There has been scant public discussion or media attention even as the city's Telecommunications Advisory Committee - which includes business and community representatives - prepares to soon recommend a course of action to the Glendale City Council.

Before making a decision, maybe city officials should consider the experience of other governments that have weighed into private sector work - and are now looking for ways to get out of it.

After years of running CALNET, the state of California this year will farm out its telecommunications network to the private sector at a potential savings of millions of dollars.

``The telecommunications industry is one of the most dynamic and competitive in the world,'' said John Flynn, chief information officer and director of the Department of Information Technology. ``A state-owned and -operated information network cannot possibly keep pace with advancements in technology as well as the private sector can.''

Many cities with municipally owned power departments are reeling amid deregulation. They are faced with stranded debt from long-term contracts and the residents could be left holding the bag.

Government investments that look like they can save money, even enhance growth, often become major liabilities.

The telephone may be ringing at Glendale City Hall with telecom companies offering sweet deals for the privilege of partnering with the city in any venture it may choose to undertake. The city and its residents may be better served by not even picking up the phone.