Table Test

Traditional Broadband and Digital Infrastructure Options for Unserved and Underserved Areas

Strategy Costs Benefits Outcomes

Option 0) Do Nothing

– leave unserved and underserved market to private sector service providers

  • Reduced economic opportunities and quality of life
  • Reduced tax revenues and property values
  • No financial implications to City because City not getting involved
  • Poor broadband services in unserved and underserved areas will persist where there is not enough of a private sector business case to serve them
  • No control over digital future, e.g. smart community services
  • Option 1) Develop a public-private partnership with a selected ISP
  • Investment by City to attract private sector partner investment
  • Subsidization of business case to a private sector partner
  • Service to designated areas as part of partnership agreement
  • No competition to the provider under contract
  • Limited control over digital future – City’s goals (economic vitality, community benefits, smart community services) may not align with provider’s goals (revenues, profitability, ROI compared to other investments)
  • Option 2) Become a municipal internet service provider
  • Resources to build, operate, and manage network
  • Continual need to acquire customers
  • Need to compete against incumbent and new providers
  • Ability to serve neighborhoods, and potentially to generate positive cash flow, if there is a business case
  • Full control over digital future
  • Operating as a competitor to incumbent providers for market share
  • Unserved and underserved neighborhoods may not be enough to sustain municipal investment