Transcript Broadband Delivery Models

Broadband Delivery Models
www.ConnectingCommunities.info
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
Connecting Rural Communities
www.ConnectingCommunities.info
Connecting Rural Communities
Southern Rural Development Center