As originally posted in Blandin Foundation’s eNews…

Public – private partnerships are noted in almost every broadband strategy as an alternative to strictly private or public sector network deployment. While some disagree, the consensus of policymakers is that combining private sector technical and marketing expertise with public sector patient capital is a smart way to improve odds of a successful venture. Those who disagree are in one of two camps – strictly private or strictly public.

Some months ago, I wrote about the characteristics of a good private sector partner. Today, I will focus on the characteristics of a good public sector partner.

1. Know what your community’s primary goals are before you select a partner. Is it to get better services for your own organization and other public sector entities or is your vision to stimulate community-wide benefits for better services, lower prices, economic competitiveness or quality of life?
2. Recognize that the terms of the deal are important to the private sector partnership. Length of the contract/partnership term, decisions on who owns what equipment, who will maintain the network and other operating decisions affect a private partners’ ability to attract equity, obtain debt financing and lock down their business plan. What seems like a small change for the public sector can have a significant impact on the private sector. Too many changes, especially close to the decision-making deadlines, can make a private sector partner lose credibility with their prospective financial partners, especially if your private sector is a smaller, entrepreneurial firm.
3. Recognize the impact of press releases on your private sector partners. Know that press releases motivate incumbent telecom firms to lobby even more aggressively against your project. Know that every question about the emerging deal is magnified in the press and that the press is likely to get key details wrong.

Attracting a private sector partner is a real challenge. The ARRA funding helped many partnerships form and deliver on the promise of advanced fiber network deployment. With the stimulus funding done and the pending changes in rural broadband funding from the FCC, understanding what it takes to be a good partner in advance will help you attract and work with a quality private sector provider.