Private Management, Public Rights of Way
Municipalities can also contract out to private companies to build, operate, and manage a broadband network. In this model, the city pays a private company to construct and operate the network, and allows the use of its buildings and light poles for wireless nodes, for example.
Benefits: This kind of public/private partnership takes the weight off cities from having to provide labor and resources for the construction, operation, and maintenance of wireless networks, as well as from having to hire labor for technical support. Depending on the community's resources, a private telecom company may be able to provide more labor and expertise to set up and maintain the broadband network.
Risks: Giving up both ownership and maintenance of a network can prevent municipalities from bringing in significant revenues from the venture, or from establishing open access requirements to ensure affordability, competition and fair market practices. As a result, residents may not be able to choose another service provider if they feel unsatisfied with their service.
A city-wide wireless network deployed in Tempe, Ariz. is a great example of this business model. While the city does not manage the network in any way, officials made sure to benefit from allowing Kite Networks to use its light poles to provide wireless service. Even though the network is subscription-based, the city's municipal and public safety workers receive broadband access for free, as part of the contract between the company and the Tempe government.
