public benefit

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The Public/Private Partnership Strategies - Techniques - Models Presentation By: Timothy R. King, Executive Director Public Benefit Broadband, Inc. Illinois Telecommunications Conference November 16-17, 2005 - For more information and copy of this presentation Contact : kingt@pbbroadband.org Community-Based Broadband Communications Options

Today’s Communication Infrastructure: 

Today’s Communication Infrastructure Numerous strategies and models for building a world class communications infrastructure exist today: The 'Private Sector' Models ILEC, CLEC, WISP, IOU, etc. The 'Municipality' Municipal Utility Service Organizations The 'Authority' Governmental collaborations are most typical The 'Public/Private Partnership' (PPP or P3) 'Public-Side' can have alternative meanings Today we examine a national PPP model and strategy

Recognizing the PPP Assembly : 

Recognizing the PPP Assembly The PPP Model has many variations and structures A traditional assembly The franchise structure Muni Wireless models making recent news San Francisco with Google Philadelphia with Earthlink Governmental Authorities are also recognized The Utopia example COG’s Aggregation alliances through EDC, RPDC’s The hybrid collaboration Where the 'Public-Side' has an alternative meaning Cooperative based assemblies Role of the non-profit community development organization

Background Timeline: 

Background Timeline

Case ExampleEvanston, Illinois - eTropolis: 

Case Example Evanston, Illinois - eTropolis A community-based vision lead by a local EDC – Timeline 1999/2000 C1 - Make the entire town a virtual 'Research Park' C2 - Increase connectivity options/alternatives (circuit choices) C3 - Collaboration between University, City and 'community' organizations C4 - Frame the initiative around a local portal (Intranet vs. Internet) Outcome/Results e-Tropolis Evanston entered market in 2000 Sold out capacity of partners network in 60 days 'dot-com' collapse took out all private sector partners CAVE’s claimed victory and political support eroded Project folded in 2001 GRADE C1 – Context …….. B C2 – Connectivity .. D C3 - Capability …... D C4 - Content ……... A

Case ExampleFresno, CaliforniaCentral California Broadband: 

Case Example Fresno, California Central California Broadband GRADE C1 – Context …….. A C2 – Connectivity .. B C3 - Capability …... A C4 - Content ……... A A community-based vision lead by University and EDC – Timeline 2003/2005 C1 - Take steps to change employment and digital divide in Central Valley C2 - Build a 'MAN' to influence connectivity options/alternatives C3 - Collaboration between University, Cities, County, Civic, Business, C4 - Frame the initiative around a regional need and cause Outcome/Results Central California Broadband (CCB) formed 8/04 Move to issue RFP for 'Private Partners' 2/05 Private partners selected 8/05 Developing state 'for-profit' via 'JV' merger/recap.

Case ExampleHercules, CaliforniaHercules Municipal Utility: 

Case Example Hercules, California Hercules Municipal Utility GRADE C1 - Context …….. A C2 - Connectivity .. B C3 - Capability …... A C4 - Content ……... B A community-based vision lead by City of Hercules – Timeline 2001/2002 C1 - Take steps to leverage $2B worth of development in community C2 - Build new infrastructure to support new development 'only' C3 - Collaboration between City and Developer’s C4 - Frame the initiative around building a 'City of the Future' model for 'new' Outcome/Results Hercules Municipal Utility formed 2002 Issued bond to support 'electrical' side of development Began delivering services in 2003 Now moving forward with partner 'expansion' in HMU

Case ExampleLake Havasu EDU, Arizona: 

Case Example Lake Havasu EDU, Arizona GRADE C1 - Context …….. A C2 - Connectivity .. B C3 - Capability …... C C4 - Content ……... B An EDC lead effort around development of 'Business Park' – Timeline 2003/04 C1 - Build business park with advanced communications infrastructure as 'HUB' C2 - Establish market differentiation and attract new business to area C3 - Collaboration between City of Lake Havasu, EDC and Contractor C4 - Frame the project around establishing 'aggregation' hub and connect to City Outcome/Results Phase One process concluded 2/04 Moved to next step grant andamp; loan applications in 2004 Project anticipated to move ahead in 2005/’06 Specific structure not yet determined

Case ExampleCity of North Las Vegas, Nevada: 

Case Example City of North Las Vegas, Nevada GRADE C1 - Context …….. A C2 - Connectivity .. A C3 - Capability …... C C4 - Content ……... C A City lead strategy to leverage traffic signal automation – Timeline 2004/05 C1 - Investigate use of existing traffic signal network to spur further services C2 - Streamline and enhance permitting and delivery paths for private sector C3 - City lead through Public Works Dept. with in-house ED participation C4 - Make it easier for private sector to engage and make/save money for City Outcome/Results Phase One process concluded 8/04 Moved to create friendly 'policy' and 'ordinances' New 'broadband policy andamp; ordinance' forthcoming

Case ExamplePennsylvania Broadband Consortium: 

Case Example Pennsylvania Broadband Consortium GRADE C1 - Context …….. A C2 - Connectivity .. A C3 - Capability …... B C4 - Content ……... A A rural development vision supported by federal-state-local – Timeline 2004 C1 - Investigate the Broadband PPP through localized collaborations C2 - Bring service to areas with none … increase competition where limited C3 - Collaboration between local teams, supported by federal andamp; state funding C4 - Frame the initiative around 'pilot projects' that scale to regional models Outcome/Results Phase One process concluded 12/04 2 of 3 pilots moved into Phase Two process 'Founding' private partners selected and move to form JV via merger/recap andamp; private placement Implementation and delivery in Q4 ‘05

Lessons Learned: 

Lessons Learned Developing the PPP is a 'process' and managing expectations, political currents and cycles requires a committed 'champion.' Money and politics are the greatest hurdles to success. The level of industry scandals, collapse and marketplace confusion has triggered a level of anxiety for the incumbent service brands … creating a unique market opening. The power of a local 'affinity-branded' offering can galvanize a community to action (adoption is the objective). Recognize, embrace andamp; enter 'CAVE' dialogues … sooner rather than later. Citizenship selling is a powerful tool that locks consumers into longer term contracts. Street level (Innovation Center) access for the consumer is central to the sustainable business model. A localized economic model of the PPP offers an alternative to the 'municipal path' and is best structured around a nonprofit (community development) organization and should be 'open-access.' This process has been proven to build trust and participation momentum. The play of local 'application' offerings (content) and 'security' advantages of an 'Intranet vs. Internet' model is a central selling point.

PPP Program Vision: 

PPP Program Vision Any Community USA Partnership Implementation

United States Diagram (PPP): 

United States Diagram (PPP) Public Benefit Broadband A North American Nonprofit Holding Company National Vision State Mission

State Diagram (PPP): 

State Diagram (PPP)

PPP – Program Phases: 

PPP – Program Phases

Phase One Timeline: 

Phase One Timeline 120-Day Schedule Completes PPP Phase One 120

PPP Program Bylaws: 

PPP Program Bylaws The PPP Program Bylaws provide for the necessary operating procedures and policy conditions that allows the services and procedures to flow. Within the Program Bylaws is definition of terms, conditions, purpose, objectives and corresponding 'policy documents' that addresses issues such as license of use, right to use and privacy, anti-trust, branding and marketing, membership structures, meetings, voting, applicable Board of Directors, management guidelines, etc. From these Program Bylaws a series of PPP Membership Agreements connects the bylaws to the various program participants as follows: Community Enterprise Members – This level of participation represents for the local 'Community Enterprise' point of agreement and allows for the local PPP Program brand and organizational framework to be positioned laying the foundation for financing and implementation processes to flow. Charter Members – A class of membership reserved for GEM (Government, Education, Medical). This is a very specific level of membership in the PPP program and represents a placeholder for 'unique andamp; customized' relationships to be secured between the 'Community Enterprise' the 'State' PPP and the 'Charter Member.' Sponsor Membership – Is the highest level of 'private partner' classification of participation representing a 'sponsorship' level from which several classifications are offered, including; national, regional, state and local levels. Sponsor members are branded and represented differently in the PPP than the other levels of private-partner participation. Private Partner Membership – Is the second 'private partner' classification of participation that provides for participation for all qualified and 'open access' participants and represents a lower cost level of collaboration, yet still being recognized as a PPP participant. Similar segments of national, regional, state and local levels are configured to match private sector partners interests. Associate Membership – This level of participation provides for an open level of participation to be available for individuals and businesses that whish to participate in the marketing and development of the PPP Program in defined territories and is generally reserved for those that are looking to associate with the PPP program in an independent business development capacity. Consumer Members – This level of participation represents the 'customer' side of the PPP with several classes being represented to address residential, business and institutional participations. There is a 'free' level of service participation open to any and all citizens and businesses in the community.

Q & A – Next Steps: 

Q andamp; A – Next Steps Two national pilot projects have now been launched: Pennsylvania (PBC) is 'statewide' entity ABC andamp; SAB are 'founding' partners in PBC and represent the first Community Enterprise Members California (CBC) is 'statewide' entity CCB is a 'founding' partner in CBC and represents the first Community Enterprise Member Next Steps … More Money andamp; Politics ! The PPP model is now positioned for further roll-out. We welcome discussion regarding developing the program in your state. Open discussion and Q andamp;A