Public Broadband Policy Choices

As public entities move through a broadband decision-making process, the policymakers need to consider trade-offs between different approaches. The choices can be difficult, especially if there is a lack of consensus around the core purposes of the network. In other words, “Why are we considering this significant investment for our community?” Some of these decisions are centered on community values; some are based on ensuring a successful business and operating model. A strong community engagement process can ensure that all voices are heard and that fully informed discussion and decision-making can take place.

For a publicly traded ISP, the business and operating model generally drives all decisions. Profitability is the primary desired outcome. Public-sector entities have very different balance sheets than the private sector. Economic development and social equity are two key considerations of public entities. This difference is what allows public entities to be successful in achieving both financial sustainability and social goals.

When planning network deployment and operating models, communities should consider the following choices and make decisions based on their shared values and unique set of community circumstances.

Desired Outcomes?

• 100 percent broadband subscription due to affordability and availability
• Excess revenue to support digital equity initiatives
• Excess revenue to support other government functions
• Network financial sustainability

Operating Decisions

Open Access versus Single ISP

• Are there enough prospective customers to attract and sustain multiple providers?
• Does the prospect of a competitive marketplace overcome the complexity of open-access management?
• Can you craft an operating agreement with a single provider that achieves the goals of open access for quality of service and affordability?

Public Sector ISP versus Contracted ISP Operator

• Is there an obvious local choice to selected as the contracted ISP?
• Are there enough prospective customers to cover the costs of customer service, billing, technical support, and sales?
• What is the customer service reputation of the public-sector entity?

Fiber-to-the-Home or Fiber-to-the-Curb

• Will building fiber to the door increase initial take rates?
• Will building fiber to the door provide significant overall construction cost savings?
• What impact will a fiber-to-the-curb network have on:
  • Families with low incomes?
  • Landlords and renters?
• Will fiber to the curb provide a more comfortable start-up scenario?
• What will public reaction be to construction disruption when the home will not be receiving service?