Investment in Broadband Infrastructure Can Create Cost Savings and Community Self-Empowerment

Building new broadband infrastructure is a big investment for any municipality. While the cost of that investment shouldn’t be overlooked, it’s equally important to consider the significant cost savings that can be reaped with publicly owned infrastructure. Many cities have slashed the cost of connecting their schools to broadband by opting to build their own infrastructure, instead of continuing to pay a private provider for connections. Portland (OR), for example, had been paying an incumbent provider $1,310 per month for  10 Mbps connections to schools. When the schools were connected to the city-owned network instead, the cost dropped to just $616 per month for a 400 Mbps connection. Not only did the change drastically cut costs for the school district, but the speed of service was improved fortyfold. The icing on the cake is that broadband is relatively affordable infrastructure. With the same money it would take to build a quarter mile of a light rail line, a city could build about 87 miles of an underground fiber network. Investment in publicly owned broadband infrastructure not only produces dramatic cost savings for municipalities, but fosters higher quality of life and stronger communities.

[Cat Blake is the Senior Program Manager for Next Century Cities, an organization that supports more than 200 member communities committed to expanding broadband access for residents.]