An interesting side affect of my Public Private Partnership model is its ability to pay for ALL the First Responders communication equipment. The model I presented to the NTIA in response to their public inquiry allocates 51% ownership with the State and FirstNet; the remaining 49% is open to private equity to invest in. How does this happen?
Conceptually if a State has:
· 20 Electric Cooperatives that cover the majority of rural areas
· Average $5 million a year for broadband network service that fully covers all their service territory with hardened LTE Service.
· Equates to $100 Million Annually just from the electric cooperatives
· 51% = $51 Million annually to the State
· 49% = $49 Million annually to the private equity players who pay for the statewide build out
· The State’s/FirstNet’s $51 Million could be reinvested back into the network to help pay for all First Responder radios and communication gear
· The $49 Million for private investment would allocate a percentage to fund the long-term operations by reinvesting portions of its revenue back into the broadband company for the State -- simultaneously paying its investors.
PS… nothing to stop some of the private State entities to invest as well.
This is just the electric cooperative; we haven’t started talking about
Transportation, Agriculture, Forestry, or the Investor Owned Utilities
What does the Electric Cooperatives Gain?
- The electric cooperative (which really could be any State entity that needs large-scale broadband access) can eliminate the need to build its own LTE broadband solution
- Can move to a solid-fixed, long-term, operational expense via an annual payment
- Can push off risk to the new broadband company for the State
- Can further improve that bottom line they can also offset existing communications assets by releasing them to the State PSBN effort, further reducing their OpEx annual payment
- Can re-capture the capital already spent on existing 3G and WiMax deployments by leasing those solutions as potential backhaul for the PSBN
- Can generate revenue by leasing tower and backhaul infrastructure to the State
- Can generate revenue by providing wholesale or direct rural broadband service on a priority-3 basis (allocated as part of the legislation)
No taxpayer money spent!
Just some guy and a blog….