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service providers to utilize in order to connect their customers. It allows municipalities to provide an aggregation of local customers on a single network that they are able to compete for and provide services. The concept of open -access is designed to enable competition among service providers across an open network that is owned by the municipality. The municipality retains neutrality and non-discriminatory practices with the providers who operate on the network. The municipality establishes a standard rate structure and terms of service for use by all participating service providers. &nm lc. City of P lm Const, ail.. In 2006, the Palm Coast City Council approved a 5 -Year fiber-optic deployment project funded at $500,000 annually for a total investment of $2.5 million. The network was developed to support growing municipal technology needs across all public organizations in the area, including city, county, public safety, and education. It was also planned to support key initiatives such as emergency operations, traffic signalization, collaboration, and video monitoring. The city utilized a phased approach to build its network using cost -reducing opportunities to invest in new fiber-optic infrastructure. As each phase was constructed, the city connected its own facilities and coordinated with other public organizations to connect them; incrementally reducing costs for all organizations connected to the broadband network. Showing a reasonable payback from each stage of investment allowed the city to continue to fund future expansion of the network. Through deployment of this network, the city has realized a savings of nearly $2 million since 2007 and projects further annual operating savings of $350,000 annually. In addition to these savings, the city's network provides valuable new capabilities that enhance its mission of serving the residents and businesses of the community, while generating over $500,000 annually in new outside revenue generated from use of the network. RETAIL SERVICE PROVIDER -BUSINESS ONLY Municipalities that provide end users services to business customers are considered retail service providers. Most commonly, municipalities provide voice and Internet services to local businesses. In many cases, a municipality may have built a fiber network for the purposes of connecting the city's primary sites that has been expanded to connect local businesses, in effort to support local economic development needs for recruitment and retention of businesses in the city. Municipalities that provide these services are responsible for managing customers at a retail level. They manage all operational functions necessary to connect customers to the network and providing Internet and voice services. Municipalities compete directly with service providers in the local business market, which requires the municipality to manage an effective sales and marketing function in order to gain sufficient market share to operate at a break-even or better. f: xarnple 1. "Ort Pla:xrce 1. ilities Authority 202