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Making Public/Private Partnerships Work for You—and Your Revenue Stream 3/26/2012.

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Presentation on theme: "Making Public/Private Partnerships Work for You—and Your Revenue Stream 3/26/2012."— Presentation transcript:

1 Making Public/Private Partnerships Work for You—and Your Revenue Stream 3/26/2012

2 U-reka Broadband Ventures Boutique Consulting Firm focused on facilitating next-generation broadband deployment in rural areas Directly raised $36 million in ARRA Broadband Stimulus funds Participated in another $100 million in funded projects providing Engineering, Operations and Environmental review expertise 2

3 What is the opportunity? As consolidation happens at the Tier 1 and Tier 2 level many of these companies lack the resources or interest to improve service in rural communities Cable Television companies still only remain interested in serving denser communities (Doughnut Hole) Cities and Counties (municipalities) are becoming increasingly frustrated at the lack of communication and commitment to their communities Cities and Counties are looking for options to remain competitive in the global marketplace 3

4 What do Municipalities have to Contribute? Passion for their community – Local Champion – Desire to see their community remain relevant Ties to their community – Economic Development – Education – Healthcare – Public Safety Financial Resources – Bonding Authority – Other in-kind financial benefits 4

5 What are Municipalities looking for? Expertise – Many rural Municipalities are not interested in becoming the phone company, ISP or video provider Trusted Partner – Someone who has a local reputation – Neighboring Service Provides can fill that need An Exit – Not necessarily interested in owning an asset for 30 years that they do not understand – Continue to be responsible to their constituents (Do not want to end up in a financial hole) 5

6 Role of Service Providers Bring Operational Expertise Provide Backbone Services – Often leveraging existing network assets – Can speed time to market Sales and Marketing Expertise Financial Expertise Access to additional funding sources – USF – RUS 6

7 What is a “Typical” Process? “There is no Typical Process, Each is Different” Municipality engages a Consultant – That “can speak the language” of both parties Municipality creates Momentum – Community Meetings – Meets with Existing Providers – Meets with Potential Provider Partners (often looking to share cost of feasibility study dollars) – Secure dollars to move forward with a Feasibility Study 7

8 Process Continued Feasibility Study Completed (includes): – Market Study – Anchor Institution/Shareholder meetings – Engineering Study – Operational Study – Financial Modeling – Suggestions for Moving Forward Sharing of Feasibility Study information with Leaders and the Community Municipality and Service Provider begin Negotiation of Working Relationship and Funding 8

9 Project Success Example Farmers Mutual Telephone and Lac qui Parle County Went Through Process to Secure $9.6 million in ARRA Project Funding Project Video 9

10 Intangibles of Working with Municipalities Very Creative-come up with new ideas to get out there and help you grow the customer base Economic Development Benefits-Service Provider becomes an integral part of any business retention or attraction efforts Long-term Partners-they are not going anywhere soon! 10

11 Lac Qui Parle Project Statistics Fiber Miles374 Square Miles339 Buildings Passed1738 *Critical Community Facilities12 11

12 Main Benefits LAC QUI PARLE COUNTY Economic Development – Fiber-To-The-Premise (FTTP) throughout the county FARMERS MUTUAL TELEPHONE Expand territory and customer base – which reduces operational costs per customer. 12

13 Partner Contributions Farmers Mutual Telephone Company was recipient of stimulus funds of $4,826,478 Loan and $4,826,478 Grant for this project Lac qui Parle County will contribute funds as needed to repay debt on cash flow basis Farmers Mutual Telephone Company will build out project and operate the business. 13

14 For Additional Information 14 John Schultz Booth 37 Exhibit Hall 651 967-7196

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