Netflix & Chill Isn’t a Strategy

Recently the University of Pennsylvania released a study where they analyzed the financial performance of a 20+ municipal broadband networks across the country. Regardless of whether you are in favor of or opposed to municipal broadband, there are some key points to consider:

  • The services that the government provides aren’t expected to turn a profit, but they are expected to return value. The challenge is that Internet access increases at an EXPONENTIAL rate.
  • Many of the networks listed in this report, and specifically page 13 say they will NEVER cover the costs of the project. So taxpayers are going to have to pickup the bill.
  • If you look at the projects that aren’t viable, they have a very limited service offering and a low rate of adoption. Customers want a local service provider, but they want more than just internet access.
  • Successful networks have technology plans and roadmaps to determine what value they will deliver.
  • Broadband access isn’t just a requirement; it can also be a great tool for economic development.

If you have a fiber network that isn’t performing how you expected or planned, or if you’re planning to build a new network, there are business models that can help you create value for your customers and won’t break the bank.

We welcome the chance to discuss this with you. Feel free to call one of our team members who have worked on a rural broadband project.

 

Joey Broadway at 870.919.7064 or joey@roninpbr.com or Brandon Groteguth at 812.890.6695 or brandon@roninpbr.com

 

Additional Links:

More than 50% of muni-broadband projects are unprofitable

Live stream review of the report

http://www.fiercecable.com/cable/more-than-half-muni-broadband-projects-are-unprofitable-says-comcast-home-town-study

A perspective by Chris Mitchell