Most of the Internet Service Providers (ISPs) in America endure tough times maintaining their networks at the highest level.
Some have even considered extraordinary measures to remedy that. But for CenturyLink, Frontier Communications and TDS, they could be hatching up an ambitious plan to partner with local communities in a bid to improve their networks.
Such a public partnership will help to build out and upgrade their networks to support higher speed residential and business services. FierceTelecom has quoted Jennifer Fritzsche, a senior analyst for Telecommunication Services- Wireless/Wireline at Wells Fargo saying that while the three are looking at working with local communities, overseeing and operating the networks remains to be the biggest hurdle.
“We listened to representatives from incumbent operators CTL, FTR and TDS, who acknowledged they are more seriously exploring partnership opportunities with local governments to upgrade their networks,” the research note by Fritzsche said in part. “The biggest obstacle for these partnerships to overcome is the issue of network control — the incumbents almost always want to own and maintain their network given the operational and financial efficiencies of owner economics.”
Experts have said the public-private partnerships by telecommunication companies are beneficial in both ways. While members of the public enjoy high Internet speeds, the service providers enjoy additional opportunities for generating revenue. “Competition among high-speed broadband providers is increasing, whether it’s from private companies, local governments or public-private partnerships,” Fritzsche added.
“The incumbents that adapt to this evolving ecosystem will be the best positioned for longer-term success. And ultimately the biggest beneficiary will be the broadband consumer — particularly the 34MM Americans who lack access to 25 Mbps speeds.” Notably, some of the communities have already established such partnerships with service providers from other sectors. Thus, they will have no problem embracing what the three telecoms are embarking on.