Government Funding for Broadband Network Providers Serving Community Anchor Institutions

Governments can play an important role in funding broadband infrastructure deployment to ensure robust, affordable access for anchor institutions beyond what the market is able to do. Failing to take action to spur broadband deployment creates risks for the community – losing businesses, jobs, services, and population. There are several ways that governments can finance broadband deployment, including subsidies for investment, equity in public-private partnerships (PPPs), preferential tax treatment, long-term loans, on-lending loans, and guarantees to offset regulatory or political risk. One strategy that can minimize risk to the government and the provider is to fund broadband builds first to community anchor institutions (CAIs) in a region: CAIs can then serve as the “anchor tenants” to support the network’s economic viability. This strategy can ensure that schools, libraries, health providers, and other anchor institutions receive the high-capacity broadband services they need, while also providing capacity that can be shared with surrounding residential and business consumers.

[Trained in cultural anthropology and new media, Amelia Bryne is co-Director of DeepTech.org, a research consultancy that focuses on the social and environmental impacts of information and communications technologies.]