Tuesday, October 05, 2021

County's public-private partnership with telco looks more like a pass through federal subsidy and not a PPP

AT&T Takes the Public-Private Broadband Partnership Plunge - Telecompetitor: This AT&T public-private project still needs final funding approval from the County, which will trigger finalization of a contract between the two parties. No terms have been disclosed. Public-private partnerships are growing in momentum, as cities, towns, and localities look to ensure their communities have the adequate broadband infrastructure and are willing to put up funds to accomplish it. Increasingly, incumbent carriers like AT&T are interested in partnering.

But is this truly a public private partnership? Per the story below, it looks more like a pass through federal subsidy for a proprietary closed access network in which the county would have no partnership interest.

EVANSVILLE, Ind. — Unincorporated Vanderburgh County will now be the focus of a nearly $40 million investment into broadband service provided by AT&T. 

AT&T was selected following its response to a Vanderburgh County request for proposal and unanimously approved Tuesday by the Vanderburgh County Commissioners. Four companies responded to the request, a jump from the county’s previous broadband project, which had one response. 

The total investment will be $39.6 million, of which $9.9 million is public money through the American Rescue Plan Act and $29.7 million is investment by AT&T.

2 comments:

Tom_R said...

This could be viewed as a double edged sword. Not knowing what is in the agreement, the deployment of a FTTH network to the region will help deliver a solid broadband network to many that may not have access today. The challenge will be the network will be run by a national ISP which has very well know ROI requirements; service prices will be set to meet their financial (investor) requirements. Will they be able to offer affordable access to the community.

Fred Pilot said...

Also access to all residents. The county's RFP specifically disclaimed an expectation of universal service.