Creating a Secure Funding Model
After years of study, OHIvey has come to the conclusion that the natural monopoly element of telecommunications - that is the physical infrastructure - should be provided by the municipality, county, state or other government entity as a shared public utility in a public/private partnership open access fiber to the premises model. That does not mean the burden for deploying and operating the infrastructure need rest upon the shoulders of the tax payers. Just like an airport authority, telecommunications projects can build infrastructure designed to be shared by multiple private provider entities.
Of course, the funding for the initial build has to come from somewhere and, as a public utility, that somewhere is usually bonds or some other form of debt. However, in these tough economic times, fiscal responsibility is more critical than ever. OHIvey works with the Live Oak Group to provide the Live Oak Group's Principal Assumption and Repayment Program (PARP) for those projects that are interested. The PARP offers a model that fully guarantees repayment of all principal amounts leaving only operations and maintenance and interest payments to be covered by project revenues.

To learn more about the Live Oak Group please email us (info@ohivey.com) or the Live Oak Group at howard.wattleworth@liveoakus.com. |