Broadband Partnerships

Service Providers Apartments & Condominiums Municipalities Neighborhoods & Gated Communities Partnerships in Broadband

FTTP Partnerships in Broadband

When embarking on a broadband project, particularly in municipalities, exploring partnerships with existing incumbents, local Independent Local Exchange Carriers (ILECs), or other entities can be a strategic move. These partnerships can potentially reduce the financial burden of building and operating new networks. However, it's essential to approach this option with a clear understanding of the realities involved.

Key Considerations for Municipal Broadband Partnerships:
  • Limited Interest from Potential Partners: While the idea of partnering with existing entities is appealing, experience shows that most potential partners may not be interested in collaborating on local broadband projects.
  • Assume Independence: Given the low likelihood of partnership interest, it’s prudent to plan as if your municipality will need to handle the project independently. This mindset ensures that all financial planning and resource allocation are based on self-reliance.
  • Comprehensive Financial Planning: When preparing for funding through bonds or bank loans, it’s crucial to include all operating and construction costs. This ensures that your municipality is fully prepared to cover all expenses without relying on external help.
Evaluating Potential Partnerships:
  • Comparison of Costs: If a partnership opportunity arises, compare the estimated costs of self-funding the entire project—including construction, labor, and operational expenses—against the potential savings a partner might offer.
  • Weighing Professional Experience: Beyond financial considerations, assess the expertise and track record of potential partners. A partner’s experience can significantly impact the success of the project and should be factored into the decision-making process.
Our Recommendation:

Given the uncertainties surrounding partnership interest, we recommend that municipalities plan to fully fund and operate their broadband projects independently. This approach not only prepares you for a worst-case scenario but also positions your municipality to make informed decisions if a viable partnership proposal does emerge. By having a clear understanding of the full scope of costs and responsibilities, your municipality will be better equipped to evaluate any partnership offers and decide whether they align with your financial and operational goals.

Partner with FARR Technologies to navigate the complexities of municipal broadband projects. We provide the expertise and support needed to plan, fund, and implement your network, whether you go it alone or decide to partner.