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Public-Private Partnerships
To Partner or Not To Partner?
Benefits
• Improves broadband
services
• Increases private sector ROI
• Lessens community input
• Spreads risk
• Eases political sell
• Leverages partner strengths
Risks
• Loss of control
• Unbalanced partnership
agreement
– Privatize profits
– Socialize losses
• Partner fails to perform
over the short and/or long
term
– Poor technology choice
– Poor sales and service
– Ownership change
Selecting a Partner
Know thyself
• Prioritize your goals
– Reduce financial risk
– Control over service offerings
– Ubiquity
– Affordability
– Competition
– Economic development
• Take your time
Know thy partner
• Compatible goal fit
• Reputation for service
• Technology preferences
• Long term ownership plan
Ways to Partner
Direct Financial Participation
• Sell bonds to finance
network
• Capital lease to finance the
network
• Reduce/eliminate ROW and
permit fees
• Prepay for services through
long term contract
Non-cash Value
• Organize and aggregate
demand of major customers
• Provide free or low-cost
office/facility space for
start-up operations
• Community marketing
events
• Ensure prompt permitting
and inspections
Partnership Agreements
• Process for information sharing
• Process for decision making
• Process for settling disputes
• Process for parting ways
• Relying on people and processes cementing a
long term relationship

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Bill Coleman on Broadband Partnership Models

  • 2. To Partner or Not To Partner? Benefits • Improves broadband services • Increases private sector ROI • Lessens community input • Spreads risk • Eases political sell • Leverages partner strengths Risks • Loss of control • Unbalanced partnership agreement – Privatize profits – Socialize losses • Partner fails to perform over the short and/or long term – Poor technology choice – Poor sales and service – Ownership change
  • 3. Selecting a Partner Know thyself • Prioritize your goals – Reduce financial risk – Control over service offerings – Ubiquity – Affordability – Competition – Economic development • Take your time Know thy partner • Compatible goal fit • Reputation for service • Technology preferences • Long term ownership plan
  • 4. Ways to Partner Direct Financial Participation • Sell bonds to finance network • Capital lease to finance the network • Reduce/eliminate ROW and permit fees • Prepay for services through long term contract Non-cash Value • Organize and aggregate demand of major customers • Provide free or low-cost office/facility space for start-up operations • Community marketing events • Ensure prompt permitting and inspections
  • 5.
  • 6. Partnership Agreements • Process for information sharing • Process for decision making • Process for settling disputes • Process for parting ways • Relying on people and processes cementing a long term relationship