Financing Solutions
Without a reasonable business model and access to funding, broadband networks may never be realized. One of our core competencies is tying business model, to policy and governance, to technology and infrastructure, to financing. By providing guidance through every step in this process, we are able to provide recommendations on the optimal funding strategy. Furthermore, through our network of existing financial partners and funding sources, we can facilitate the introductions to the most suitable investors, and direct the process through to successful capital raise.
To ensure that the network is financeable and has access to the appropriate capital source, we define and facilitate the funding strategy. This strategy can include use of federal stimulus funding under the American Recovery and Reinvestment Act (ARRA), current capital budgets, municipal bonds or support, financial guarantees (back-stops), or other types of bank/non-bank lending programs. Any initial liabilities would be retired from revenues generated of network uses/services, such as wholesale leasing fees or service provider revenues. Public/private partnerships (PPPs) are funded partly or entirely with private funds, with capital offsets or other forms of asset contributions provided by a public partner. The decision on whether a municipally-owned model or a PPP approach is most appropriate is answered through understanding the municipality’s current credit situation, available funding and assets, level of interest in running the broadband infrastructure, and the availability of suitable private sector partners.
Should municipal ownership be determined as the most appropriate structure, then the financing solutions that we would assist in evaluating and structuring are:
- State and Federal loan programs or grants (including ARRA), and other programs for financial assistance
- Municipal bonds
- Municipal leases
- Current enterprise funds
Should a PPP be chosen as the optimal ownership model, then potential financiers include:
- Local Anchor Tenants
- Strategic Partners
- Bank and non-Bank Lenders
- Local, Regional, and National Lenders
- Private Securities Markets
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