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uu�irrr�iranininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininininir <br />APPENDIX G. MUNICPAL BROADBAND BUSINESS MODELS <br />POLICY PARTICIPATION ONLY <br />Public policy tools influence how broadband services are likely to develop in the community. <br />This includes permitting, right of way access, construction, fees, and franchises that regulate <br />the cost of constructing and maintaining broadband infrastructure within its jurisdiction. This <br />option is not considered a true business model but does significantly affect the local broadband <br />environment and is therefore included as one option. Municipalities that do not wish to take a <br />more active role in broadband development often utilize policy participation to positively <br />impact the local broadband environment. <br />Exornple-Son'to Cruz County, CA <br />The Santa Cruz County board of supervisors in November 2013 approved an eight-month <br />timeline to overhaul its broadband infrastructure plans and regulations. Specific areas of <br />focus include permitting fee reductions and a proposed "dig once" ordinance that would <br />make it easier to install new fiber-optic cables during other work on area roads or <br />utilities lanes. "The County will continue a focus on broadband infrastructure throughout <br />the county to enable businesses to function in the digital era, and students and <br />households to have high quality access to information and communication. The County <br />will work with industry providers to develop a Broadband Master Plan in order to identify <br />focus areas within the county that will be most suitable for gigabyte services, particularly <br />as the Sunesys backbone line is constructed during 2014 and 2015. The County will work <br />with service (last mile) providers to ensure that these focus areas are deemed a priority, <br />in order to support streaming requirements, product development, job creation, and <br />online selling capability." <br />INFRASTRUCTURE PROVIDER <br />Municipalities lease and/or sell physical infrastructure, such as conduit, dark fiber, poles, tower <br />space, and property to broadband service providers that need access within the community. <br />These providers are often challenged with the capital costs required to construct this <br />infrastructure, particularly in high cost urbanized environments. The utility infrastructure <br />provides a cost-effective alternative to providers constructing the infrastructure themselves. In <br />these cases, municipalities generally use a utility model or enterprise fund model to develop <br />programs to manage these infrastructure systems and offer them to broadband service <br />providers using standardized rate structures. <br />200 <br />