BROADBAND DELIVERY MODELS

THREE MODELS Private Sector Municipal Public/Private Partnership

PRIVATE SECTOR Return on investment driven o Infrastructure investments o Types of services o Price Competition for services in urban and suburban - lower cost Limited service at higher cost in rural and central cities

PRIVATE SECTOR – CLOSED NETWORK Service provider focused - Network owner/operator determines bandwidth offerings Owner/operator determines what services will be offered (ISP, VOIP, Video) Connection cost based on amount of bandwidth - higher bandwidth = higher cost

MUNICIPAL MODEL Government owned – o Single Municipality - Normally only found in municipalities that have existing electric or phone utilities o Regional Authority (Utopia, Iron Range) Middle mile provider to public anchor institutions

MUNICIPAL MODEL Pros o Provider of last resort in underserved areas o Leverage existing resources Cons o Private sector resistance to competition o Incumbent pressure to legislate against municipal delivery of broadband o Political and capital risk associated with starting a new government enterprise o Service area geographically limited

PUBLIC PRIVATE PARTNERSHIP Government represents public Right of way in exchange for expanded service and upgraded services Private sector owns and operates the network infrastructure and the customer Pros: Improved service Cons: Service limited by municipal boundaries; Closed network

OPEN ACCESS PUBLIC PRIVATE PARTNERSHIP Private non-profit represents public Public entities participate as members Private sector owns, operates the network and delivers services Non-profit owns the customer Pros: o Community drives availability of network services o Operator Independent Network – lower cost of entry of service providers

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.)

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