Models for Public Sector Involvement in Regional and Local Broadband Projects in .NET

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Models for Public Sector Involvement in Regional and Local Broadband Projects
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Content, Services, Applications, Customer care Broadband networks
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Ducts, Masts, Poles, Colocation sites, Dark Fiber, Passive elements
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Figure 63 Passive infrastructure model
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the broadband network not only safeguards competition neutrality, but it also ensures an anchor tenant (the local government) for the infrastructure from day one
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624 Fiber condominium
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In most cases, passive infrastructure does not include the last segment of end user access lines from the curb to an apartment inside a multidwelling, or within a given housing or business area In the ber condominium model, the last part of the dark ber infrastructure is owned by the end users themselves The contractor advertises that they intend to build a condominium ber network and offers early participants special pricing before construction begins This allows the contractor to guarantee early nancing for the project and to demonstrate to bankers and other investors that there are enough customers committed to the project The condominium ber network is operated like a condominium apartment building The individual owners of individual ber strands can do whatever they want with them They are free to carry any type of traf c and to terminate the ber in any way they so choose The company that installs the ber network is responsible for overall maintenance and repairing the ber in case of breaks, moves, additions or changes The condominium manager charges the owners of the individual strands of ber a small maintenance fee, which covers maintenance and right of way costs It should be noted that similar types of condominium can be set up using any type of broadband access technology, for example xed wireless access or Wi-Fi The advantages of this model are as follows 1 This is an approach that follows demand The end user infrastructure is built only for customers who have asked for it 2 It can be an excellent complement to the carrier s carrier model or the passive infrastructure model The infrastructure manager in both these models may offer end users the possibility to construct a nal ber drop to their premises if they are willing to pay the cost of this investment
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3 Fiber to the end user s premises can be a platform that allows a huge amount of advanced services, such as video-on-demand, quality videoconferencing, various video games, advanced medical and education services This model s disadvantage is that it only makes sense if end users buy into the condominium Consequently, these services will only become available if there is a critical mass of end users requesting access to this type of infrastructure The different aspects of building and operating condominium ber networks are dealt with in 7
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625 Aggregation of demand
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The strategy in this case focuses on having a large enough critical mass of users to provide an incentive for building broadband network elements The community aggregates together core user groups to provide a guaranteed level of demand, and thus a guaranteed minimum revenue stream to commercial broadband operators Municipalities can aggregate demand from:
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r government and public entities In most cases, this includes local government entities, schools r the public sector, but also from the private sector, through agreements with businesses or
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even individual users through preregistration schemes Regional or local Internet service providers and major regional businesses are the obvious rst targets for these agreements Frequently, aggregation of demand is used in parallel with another initiative, such as the creation of an open access carrier s carrier network or a primary infrastructure project The means of doing this is by rst carrying out a community needs assessment of both public and private sectors If public sector demand creates a suf cient critical mass, the contract is tendered out to interested broadband operators If the public sector demand does not seem to create a critical mass, public and private sectors needs may be pooled into the contract If necessary, demand from neighboring towns or areas can be pooled into the same contract in order to achieve the necessary critical mass The advantage of this type of intervention is that it bears no nancial risk for the public sector It does not require any cash investment, and the public sector does not need to develop any particular technical expertise Furthermore, and in particular when used in combination with another method of intervention, it reduces the nancial risk for the private sector, and allows a faster and more effective deployment of broadband services in the area Disadvantages of this model are as follows 1 It requires considerable effort to coordinate everybody s needs and to pool them into one contract There is a need for strong leadership during detailed negotiations, in order to reach a consensus among the various parties on the best technology, the best operator, the best structure of contract, etc and hospitals and other public bodies
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