The third-party enablement business model for rural broadband

In a two-year research project of the Rural Broadband Consortium, C Spire led a group of companies that included Nokia, Microsoft, Facebook, and others to explore the challenges of cost-effective rural broadband deployment as well as what technologies and additional business model changes might help. The Rural Broadband Consortium's report concluded that the most common business model for broadband is that of an “operator-only” internet service provider (ISP) in which a single operator designs, builds, operates, and maintains the network. Yet the limited revenue offered by rural markets compared to more populated urban markets, combined with how easily the cost of serving rural communities can skyrocket, results in a difficult business case for bringing broadband internet service to these locations. To solve this, the consortium offered an alternative business model called a “third-party enablement model.” In this model, there would be different iterations in which two parties collaborate to provide service, allowing “shared costs, different levels of expertise and more efficiencies in areas where owning the whole process is challenging.” The report explored three potential partner-types for operators: “Local stewards” who can be creative and flexible in helping to establish broadband service; infrastructure providers such as local governments, utility companies, or cooperatives; or partnering with an emerging or established ISP which could make increasing connectivity more cost-effective for both parties. C Spire has shared these findings with public policymakers at the local and state levels and as a way to open up a deeper conversation about how to better, and more collaboratively, address rural broadband.