Electric Utilities
The New Essential Infrastructure—Broadband
Electric utilities, whether public utility districts (PUDs), electrical co-ops, or municipal utilities, are in a unique position to lead in ensuring that all communities can get the broadband they need. Many utilities have already made great strides to ensure reliable, competitive broadband to their businesses and residents. By providing broadband on a wholesale basis and partnering with retail internet service providers (ISPs), public utilities have helped thousands of households and businesses get access to reliable, affordable broadband.
Residents and businesses that do not have access to the broadband they want and need risk falling behind in the increasingly competitive online world. As a consequence, their communities risk diminished relevance and limited economic growth opportunities. The challenges of providing access to high-quality, affordable broadband for all can be overcome – however, a new approach is needed when unserved and underserved areas do not represent enough of a business case for private sector investment in broadband.
For utilities considering entering the broadband business and for those already engaged, there are now proven models for ensuring that even the smallest communities can benefit from broadband. Technology options, such as open access networks, and innovative models, such as fiberhoods—building to committed demand—can help utilities to lead the way to full and affordable broadband coverage for their communities.
Moving Forward
The first step is to agree on the problem by showing communities and incumbent broadband providers empirical evidence of broadband availability and use. What areas have broadband? What areas have poor or insufficient internet service? What are the benefits from broadband that our businesses should be leveraging? Most importantly, to what extent can investments in broadband to bridge gaps pay for themselves by enabling businesses to stay, expanding local job opportunities, growing the tax base, and improving local quality of life?
This due diligence and impartial assessment of broadband availability, use, and community benefits is not just another broadband study. Instead, collecting the right data is the start of a process that plans for outcomes and engages the community by using empirical evidence to build buy-in. With buy-in and an economic case for investing, communities and regions can finally move to address their broadband gaps.
The next step is to approach broadband as essential infrastructure, like roads, where community benefits outweigh investment costs. Road infrastructure is a foundation on which communities and economies have been built – those with good quality, accessible road networks have thrived. With everything going online, communities and economies now need dependable, sustainable broadband infrastructure.
Strategic Networks Group has done the research and analysis to clearly quantify the benefits of broadband to individuals, to businesses, and to municipalities and utilities. We know the value of broadband because we have measured it. Furthermore, we have applied this research to planning and have developed practical methods to help regions and communities achieve high-value, sustainable broadband solutions.
It is SNG’s mission to help communities get the broadband they need and leverage the broadband they have to thrive in the digital economy. We are uniquely positioned to assist public utilities and the communities they serve to increase broadband access as we strive to open the digital door for everyone.
We offer a range of public utility solutions for those entering the broadband market as well as those wanting to expand broadband access to more communities.
Utility Network Investments that Meet Your Goals
Whether you are a municipal or cooperative electric utility already serving your area and want to expand broadband access, or you are beginning your journey down that path, Strategic Networks Group offers solutions that specifically address the challenges and needs of local utilities who want to retain and sustainably grow their rate base. We understand public and co-op utilities (especially rural electric member cooperatives) have a unique role and opportunity to work with your communities to ensure that quality broadband is available to all who want it.
Broadband is the new essential infrastructure for communities and regions. Communities need to take control of their broadband future. Engaging with those who benefit in the development of a solution is an essential part of the process.
The following SNG solutions are focused on addressing the needs of public utilities and the communities they serve.
Assessing the Case for Investing in Broadband Networks as Infrastructure
Communities and Regions Without Networks
| Challenge / Need | Solution |
|---|---|
|
Is there enough demand for broadband services? Where is demand strong and where do you need to drive demand? Where should you prioritize your investments? You need empirical evidence and impartial assessment of broadband access, adoption and usage to take leadership in developing a solution to address broadband needs |
SNG’s Digital Economy Demand Checkup service provides SNG’s industry-leading digital economy metrics and data collection tools for localities considering broadband and digital infrastructure projects. The service is designed to be a practical and cost-effective way for localities to assess whether they have enough of an addressable market by gathering demand data directly from residents, businesses, and organizations. Assessing broadband demand is one of the first steps a locality can and should take as they decide where and how to get started. |
|
Understand whether it is economically feasible to invest in broadband infrastructure as a platform for the community – do the benefits outweigh the costs?
| Economic Feasibility Assessment – is the foundational first step that answers “Does this infrastructure investment pay-off for our community?” by quantifying:
|
|
Understand how to move forward quickly, build buy-in, and avoid pitfalls
|
Broadband Toolkit – Provides guidance and tools to move local leaders through the process of investing in and implementing broadband. Community Broadband Readiness Self-Assessment – Provides a framework for communities to engage local stakeholders and assess key broadband success factors they need to address. Market Assessment – to identify new demand and benchmark current broadband use to develop a sustainable network business and operations plan. |
| Sustainably finance network backbone for community / region | Municipal Cost Reductions – Assess whether long-term (15-25 years) community benefits outweigh investment costs. |
| Sustainably finance last-mile roll-outs | Demand Aggregation – Build to committed demand using online tools (e.g. a demand aggregation platform) through which property owners opt-in to broadband improvement zones, introducing additional financial organization options outside of municipal or county debt or raising taxes. |
Communities and Regions With Net
| Challenge / Need | Solution |
|---|---|
| Measure the impacts from the investment in broadband infrastructure. | Economic Baseline – Collect empirical data from individual businesses, organizations, and households on changes in their utilization and impacts they have realized.
|
Grow local demand and drive meaningful use of the network to:
Discover/create models and tools to help networks become sustainable and to maximize community return on investment. |
Market Assessment – Identify potential demand and benchmark current broadband use in order to develop a sustainable network business and operations plan. Small Business Growth Program – Drive demand, turning potential demand into active demand. Demand Aggregation – Sign up new demand to extend network to areas of committed demand.
|
SNG offers these services to utilities who want digital infrastructure that provides faster internet service to their members and organizations, delivers essential network benefits to existing infrastructure, and positions utilities as central contributors to community progress.