Public Ownership

The ownership of a wireless network can be held in whole by a public institution, such as a municipality, or by a group of public institutions, such as several city governments. These groups can own and fund the construction of wireline infrastructure to areas where they wish to establish broadband service. Through these lines, they can run affordable broadband Internet service owned by a public entity, like an electric utility.

To allow other providers into the market, cities can implement open access to sell access of their networks to other service providers. Funding for publicly owned networks can come from taxes, subscription fees, grants and donations, and/or advertising.

Many cities and towns - including St. Cloud, Fla., and Glenwood Springs, Co. - offer telecommunications services using the public model, and many have experienced great success.

Benefits:
A publicly-owned wireless network can be a safer alternative to private or public/private ownership models. Municipalities often have much stronger incentives to offer affordable Internet to all of their residents, including those living in areas not serviced by private companies. Communities can also implement open access requirements and sell access of their lines to other competing service providers at cheap, wholesale prices.

Cities can collect some revenue from subscription fees if they choose to charge a price for the wireless service. Most of the city's revenues, however, will likely come from its ability to supply municipal and public service workers with free broadband instead of having to pay for expensive Internet offered by a private company.

Risks:
Municipalities must finance the construction and operation of a publicly owned wireless network, and allocate funding and staff for 24-hour technical support and regular upkeep. Some cities can encounter difficulties in providing everyday maintenance. If so, they can choose to outsource maintenance to a private company.

 

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