Broadband Delivery Models

Three Models Private Sector Municipal Public/Private Partnership

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

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

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

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

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

Open Access Public 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

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

Southern Rural Development Center Connecting Rural Communities Connecting Rural Communities