Connecting Rural Communities

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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 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.)
      FOR MORE INFORMATION:




WWW.C ONNECTING C OMMUNITIES . INFO


          Southern Rural Development Center

				
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posted:10/3/2012
language:Latin
pages:10