Public Private Partnerships (PPPs)

Broadlinc desires to utilize PPPs in a new way to expand broadband capacity in the rural areas of Spokane County. This approach will apply to fiber and wireless solutions in connecting eligible Broadland Serviceable Locations (BSLs).

“A public-private partnership (abbreviated as P3 or PPP) is an agreement, usually creating a lasting relationship, between a private party and public entity to share the risk and rewards (revenue) of delivering or enhancing an essential public service (owned asset). Often the project is one whose economics or feasibility are dependent upon, or greatly enhanced through, collaboration” (Plante Moran)

PPPs are a contract for shared Risk, Revenue, and Ownership

Common PPPs

Design-Build (DB)
Design-Build-Finance (DBF)
Design-Build-Operate (DBO)
Design-Build-Maintain (DBM)
Design-Build-Finance-Operate (DBFO)
Design-Build-Finance-Maintain (DBFM)
Design-Build-Finance-Operate-Maintain (DBFOM)

Broadband infrastructure capacity expansion applications are a combination of any of the above

How are PPPs similar/different from Indefeasible/Irrevocable Right of Use (IRU)?

Area PPP IRU
Industry Many Sectors have examples in use Telecommunications
Risk Variable & Shared Held by Issuer of IRU
Revenue Variable & Shared Pre-negotiated operating costs
Ownership Variable & Shared Transferred for the term of the IRU
Performance Enforceable Full control as long as legal activities
Open Access Can be discretely defined and enforced Full control as long as legal activities

IRUs are specific to the telecommunications industry to create a temporary ownership arrangement (typically 25-30 years) for a portion of (usually) fiberoptic cable for capacity (i.e. channels of bandwidth for subscriber expansion).

IRUs cannot be annulled or voided. The IRU recipient acquires an unconditional right to the network for any legal purpose.

Risk is usually held completely by the issuing entity of the IRU with fixed contributions by participants for operating costs/maintenance fees that may or may not be tied to service delivery.

Benefits of PPPs for WSBO BEAD NOFO Submissions

  • Strengths of Private ISPs for Project Areas Design Approach (Fiber & Hybrid)
  • Access Public Match Cash Contributions
  • Leverage Combined existing Public & Private plant and infrastructure
  • Public Letter Of Credit (LoC) Potential
  • Established Franchise Allowances
  • Streamlined Permitting Process (including Joint Use)
  • Proactive Environmental Reviews
  • Shared Performance Proforma
  • Colocation of equipment (fiber and/towers)
  • Overbuild Protection
  • Non-exclusive Provider Agreement for minimum service thresholds (likely 100/20 Mbps) and maximum pricing for entry subscriber plans (including broadband subsidy programs similar to ACP)

STAY IN THE LOOP

I’m interested in a partnership.

If you are interested in entering a PPP with Broadlinc, or have any questions, please contact info@broadlinc.org.