How Localities Can Monetize Broadband-Enabling Assets and Expand Connectivity

With the COVID-19 pandemic demonstrating the critical need for communications connectivity, local governments are striving to improve local broadband service and fill broadband service gaps. At the same time, localities may be able to generate much-needed revenue from broadband and telecommunication assets they already own, including towers, fiber optics, rooftops, conduit, and poles.  Indeed, many cash-strapped communities possess a range of assets, including fiber strands and tower and conduit space, that have spare capacity and could be maximized. Given the challenging economic environment, some localities have been approached by investors looking to snap up attractive investment opportunities—or even capitalize on economic hardship to get favorable terms.

Based on our experience with such deals, we urge caution and careful consideration before localities sell or otherwise monetize their broadband-enabling assets. These assets represent valuable tools for meeting short- and long-term broadband goals that will be challenging to replace in the event the locality strikes a bad deal with an investor and loses control of its own assets. Localities can build a monetization strategy that ensures that these twin purposes – revenues and broadband expansion – complement each other rather than undercut each other.