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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 ACCESSPUBLIC 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.)
Southern Rural Development Center
FOR MORE INFORMATION:
WWW.CONNECTINGCOMMUNITIES.INFO