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1.2 Business Models and Financial Overview <br />Business Models <br />We reviewed seven (7) potential business models for Saint Anthony Village's <br />consideration. <br />1. Universal Access: Provide free or subsidized service. <br />2. Economic Development: Ensure that low --cost access is available to all <br />residences and businesses. <br />0 <br />9 <br />City. operations: Deploy network based upon public safety and other <br />municipal applications. <br />ISP Competition: Become a <br />retail provider of high-speed <br />connectivity services. <br />5. Public -Private Partnership: <br />Collaborate with existing or <br />new providers to enhance <br />services -and reduce risks. <br />6. open Access Model: Saint <br />Anthony Village deploys a <br />wireless network that a retail <br />provider can leverage to <br />deliver services. <br />7. Private Enterprise: Saint <br />Anthony Village does not <br />install a network, but promotes <br />available services from <br />incumbent providers.. <br />The Federal Communications Commission <br />(FCC), this August, ruled DSL as an <br />information service. This ruling means that <br />Qwest will no longer be required to lease DSL <br />circuits to resellers such as Cascade <br />Communication. This ruling makes both the <br />DSL and cable modem infrastructure "closed" <br />to resellers. <br />• Qwest claims that this .ruling will encourage <br />them to expand the availability of DSL. <br />• Critics claim this ruling will limit customer <br />choice and increase access fees since the <br />market will now be served by only two <br />providers. <br />Our concern with the ruling is that individual <br />providers may try to prevent new services such <br />as VolP and IPTV from being supported. <br />Through market and financial analysis, we concluded a combination of the Public - <br />Private Partnership and Economic Development models appear the best fit for the <br />City of Saint Anthony Villages' needs: <br />• Create a most "unwired" city campaign and promote ubiquitous availability <br />of low-cost "portable" Internet Services (Economic Development). <br />• Install a wireless network and offer retail services to residences and small <br />businesses (Public -Private Partnerships). <br />o Contract out ISP hosting, help desk, and monitoring services. <br />1-2 <br />AWT <br />.. ter c a. W a -t <br />5 8 Lan -2i"101— <br />