Hurdles were anticipated as the Memphis Networx business plan unfolded. Chief among them was regulatory approval. State laws govern municipalities offering telecommunications services. Any new entry wishing to provide telecom must receive state regulatory approval. Local franchise agreements also must be addressed. Municipal utilities developing a business case for a telecom strategy should prepare for the following issues: * Partnership role definition. * Significant resource expenditure, of time and money. * Stakeholder communications. * Maintenance of commitment and vision.