There is no shortage of approaches when it comes to bringing public-private partnerships (PPPs) to rural communities, according to a report from New York Law School’s Advanced Communications Law & Policy Institute.
The report describes seven types of PPP opportunities: requests for proposals (RFPs), smart cities, state grant programs, local network expansion, dark fiber/conduit release, new market entry, and regulatory reform.
The report describes the city, state, and ISP role for each type of partnership, and pros and cons for each type.
Some highlights from the pros and cons section:
- Requests for proposals (RFPs). Pro: There is broad familiarity with what is expected of potential partners. Con: Once responses are submitted, RFP processes are rarely transparent.
- Smart cities. Pro: Leveraging existing broadband infrastructure is most efficient. Con: Partnering with an inexperienced firm could raise cybersecurity and privacy concerns.
- State grant programs. Pro: Grant programs are now the primary means of facilitating broadband expansion, which means many programs have become efficient and impactful on this front. Con: Some states have attempted to use these programs as a means of achieving extraneous policy goals.
- Local network expansion. Pro: Localities and partner ISPs are well positioned to collaborate; Con: Some localities are using available funding to pursue municipal broadband projects, eschewing the proven partnership model in favor of riskier approaches, said the report.
- Dark fiber/conduit lease. Pro: Puts underused assets to productive use, potential revenue generator for a city. Con: Assets sometimes are deployed in served markets, resulting in wasteful overbuilding
- New market entry. Pro: A new ISP enters the market, providing consumers with additional choices. Con: Failure to extend concessions to all ISPs tilts the playing field in favor of the new entrant and undermines the incentives of other ISPs to continue investing.
- Regulatory reform. Pro: Updating rules to reflect modern market dynamics can unlock new investments and potentially invite new entrants. Con: None, so long as the reforms maintain a level playing field.
The report also offers a list of factors related to partnerships that state and local officials should consider when selecting a partner. They are expertise, track record, scale, security and reliance, community roots, and commitment to competing on a level playing field.
PPPs are increasingly common. A recent example is from last June, when Ziply said it will bring fiber symmetrical broadband speeds as fast as 50 Gbps to Camaro Island, Washington.
