Why did Minneapolis approve a public-private business model?
The public-private partnership spelled out in the business model means that the private partner will build, own and operate a reliable, flexible and open wireless broadband network that uses and builds upon the City’s existing fiber optic network assets. Essentially the City will own the fiber and serve as an anchor tenant for network services. The City will allow the private partner to use City buildings, poles and other assets to mount wireless equipment. The private partner will fund, build and operate the wholesale and retail wireless network. Cost is the key reason for taking this approach. A private vendor can construct and manage the network and meet City government’s requirements without using tax dollars. It is estimated that the cost to construct the network and fund the initial start-up phase will be about $20 million, with the expectation that the tech lifecycle will require significant and expensive upgrades every three years. But cost is not the only factor. Several major
