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Exploring Broadband Delivery Models: Private, Municipal, and Public-Private Partnerships

This document examines various broadband delivery models including private sector, municipal, and public-private partnerships. It highlights the role of service providers, network ownership, competition, and the impact of these elements on service delivery in urban, suburban, and rural areas. The discussion encompasses market dynamics such as return on investment, pricing structures, availability of services, and the challenges faced by municipalities and private enterprises in delivering broadband. It also explores consumer-focused models and operator-independent networks to enhance service availability.

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Exploring Broadband Delivery Models: Private, Municipal, and Public-Private Partnerships

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  1. Broadband Delivery Models

  2. Three Models • Private Sector • Municipal • Public/Private Partnership

  3. Private Sector • Return on investment driven • Infrastructure investments • Types of services • Price • Competition for services in urban and suburban - lower cost • Limited service at higher cost in rural and central cities

  4. Private Sector – Closed Network • Service provider focused - Network owner/operator determines what services are delivered • Owner/operator delivers broadband connection and determines what services will be offered (ISP, VOIP, Video) • Connection cost based on amount of bandwidth; higher bandwidth = higher cost

  5. Municipal Model • Government utility – • Single Municipality - Normally only found in municipalities that have existing electric or phone utilities • Regional Authority (Utopia, Iron Range) • Wireless hot zones

  6. Municipal Model Pros • Provider of last resort in underserved areas • Leverage existing resources Cons • Private sector resistance to competition • Incumbent pressure to legislate against municipal delivery of broadband • Capital risk associated with starting a new government enterprise • Service area geographically limited

  7. Public Private Partnership • Government represents public partner • Right of way in exchange for expanded service and upgraded services • Private sector owns and operates the network infrastructure Private sector owns the customer • Pros: Better service • Cons: Service limited by municipal boundaries; Closed network

  8. Open AccessPublic Private Partnership • Private non-profit represents public • Public entities participate as members • Private sector owns and operates the network and delivers services • Non-profit owns the customer • Pros: • Community drives availability of network services • Operator Independent Network – lower cost of entry of service providers

  9. Operator Independent Networks • Consumer focused – Consumer chooses services and providers • Network ownership and operation separate from services (may be private or public) • Private sector delivers services (IP, VOIP, video, accounting, remote monitoring, video teleconferencing, remote back-up etc.) • Consumer

  10. Southern Rural Development Center Connecting Rural Communitieswww.ConnectingCommunities.info Connecting Rural Communities

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