www.ifc.org/thoughtleadership NOTE 107 • NOV 2021 Municipal Broadband Networks—Opportunities, Business Models, Challenges, and Case Studies By Georges V. Houngbonon, Carlo M. Rossotto, Davide Strusani The accelerated use of digital services during the COVID-19 pandemic has highlighted the importance of high-speed Internet access. Yet a large share of adults in emerging markets still live in cities where the availability of high-speed Internet is limited. There is a strong case to be made for municipal broadband networks, which are fully or partially facilitated, built, operated, or financed by local governments, often in partnership with the private sector. There are three basic models for creating and operating these networks, and every network must work in the unique context of the city it will serve. But if they are well implemented, these models can offer digital access to city residents, help close the digital divide, and create opportunities for private sector players in both advanced and emerging markets. Key Findings • Municipal broadband networks (MBNs) can result from • Successful and economically relevant MBNs can a number of local initiatives, often in partnership with generate numerous economic and social benefits for private sector investors, whereby cities can act as users, local stakeholders, especially the local government, rule-makers, financiers, or infrastructure developers. local businesses, and municipal residents, by increasing • Municipal broadband networks can be developed access to affordable quality broadband Internet. through three types of business models depending • MBNs can, however, pose a number of challenges city’s or private sector investors’ involvement in the including: (i) PPP contract design; (ii) anticipation financing and construction of the network: (i) a passive of network upgrade investment needs; (iii) risk of infrastructure model; (ii) a wholesale access model; and crowding-out of the private sector; and (iv) project (iii) a fully integrated model. management capacity. • Several municipal broadband network projects are • A review of a set of case studies suggests that when implemented under public-private partnership (PPP) they are economically relevant and created under the contracts. A variety of PPP contracts are available to appropriate business model, MBNs can be financially achieve balanced partnerships between municipalities sustainable and support uptake of quality connectivity and private sector investors, where each party focuses by end users, including low-income individuals. on its own area of expertise and shares risks and benefits associated with network deployment. About the Authors Georges Houngbonon, Economist, Telecom, Media and Technology (TMT), IFC. His email is ghoungbonon@ifc.org. Carlo Maria Rossotto, Principal Investment Officer, Global Infrastructure – Upstream, IFC. His email is crossotto@ifc.org. Davide Strusani, Principal Economist, TMT, Disruptive Technologies and Funds, IFC. His email is dstrusani@ifc.org. 1 This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. Why Municipal Broadband Networks? • Local government as rule-maker. Municipalities can adopt or reform local ordinances that affect the ease of Municipal broadband networks (MBNs) are high-speed commercial deployment, such as rights-of-way, utility Internet access networks that have been fully or partially pole attachments, road and building construction codes, facilitated, built, operated, or financed by local government.1 zoning policies affecting wireless antenna placement, MBNs can be rolled out using various broadband network and cable franchise agreements. Digital maps of available technologies, including fiber optic cables, licensed wireless infrastructure have supported the development of private (e.g., 3G, 4G), and unlicensed wireless (Wi-Fi). Broadband broadband networks in urban areas. Many cities that had Internet can be provided through various models depending on allowed aerial cable deployment in the past to promote local goals and locally-based solutions. 2 These models involve broadband deployment have stepped in and passed the participation of public or private sector operators in the regulations requiring telecom operators to bury their cables deployment of national or regional broadband networks, for safety and aesthetic reasons. Examples include cities as municipal or local networks, and community networks. diverse as Bucharest, Bangkok, and Panama City. MBNs offer an alternative option to the provision of high- • Local government as financier. Municipalities can provide speed Internet connectivity to underserved individuals and subsidies for broadband users or private sector-led service businesses and can therefore help alleviate the digital divide providers, which may be direct or indirect in the form of in emerging markets. An estimated 3.7 billion individuals planning or equipment grants, tax credits, or other incentives. were offline in 2019, prior to the COVID-19 pandemic, • Local government can also act as an infrastructure representing 48 percent of the global population, and they developer. In such instances, a municipality can adopt resided primarily in developing economies, especially the Sub- supply-side policies in which a division is ultimately Saharan Africa and Asia and the Pacific regions. 3 responsible for the provision of one or more components of During the pandemic, increased and sustained demand for broadband network infrastructure. cloud-based services required high-quality Internet access A number of factors affect the development of MBNs. Key supported by advanced networks like 4G/5G or fiber-to- determining factors of municipal broadband include: the the-home.4 Increasing the availability of high-speed Internet engagement of public utilities; the involvement of the private requires the engagement of all stakeholders, including private sector in joint infrastructure projects; local demand for retail investors and municipalities. This is a pressing agenda, as 68 and wholesale digital connectivity services, often proxied by percent of the world’s population is projected to live in urban density of economic output;6 and an enabling institutional and areas by 2050, compared to 55 percent today; this amounts regulatory framework at the national or regional level.7 to at least 800 million people moving to urban areas over the next three decades. However, MBNs remain limited in emerging markets. Most MBNs initiatives have been undertaken in high-income Municipal broadband networks can be used to support economies like the United States8 and the European Union, as digital connectivity services for a municipality or for the well as in upper middle-income economies like Brazil, South development of smart cities. Digital connectivity services Africa, and China. In emerging markets, especially in cities supplied through municipal broadband networks include across lower-middle income and low-income countries, most those used for the city’s own operations (e.g., meter MBN initiatives are limited to free Wi-Fi networks.9 reading, municipal data network, supervisory control and data acquisition, and voice) and those provided to others Business Models of MBNs (cable television, long-distance telephone, Internet access, MBNs can be developed under three types of business broadband, fiber leasing, and local telephone). models, depending on the level of involvement of MBNs can result from a number of local government municipalities or private sector investors in the digital initiatives, often in partnership with private sector investors.5 connectivity service value chain (Figure 1). • Local governments can act as broadband users. As such, 1. Under a Passive Infrastructure Model, municipalities they indirectly attract private sector investors in the facilitate investment in passive infrastructure such as deployment of broadband networks through demand-side ducts and dark fiber, while network access and services policies. In particular, a municipality can use its local are provided by private sector operators. Examples include leadership role or its role as a major telecommunications Bucharest Fiber Network in Romania (Case Study 1, customer to assess, stimulate, or aggregate demand for below) and LinkNYC, a wireless network in New York broadband Internet access. (Case Study 4). 2 This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. PASSIVE INFRA MODEL WHOLESALE MODEL FULLY INTEGRATED MODEL Services & Content Services & Content Services & Content Access Access Access Network Passive Equipment Network Passive Equipment Network Passive Equipment » One entity deploys the passive » One entity deploys and activates the » One entity offers the full range of infrastructure (ducts, dark fiber…) optic fibers broadband content and services directly » Neutral operator (open access) » Offers bandwidth services to to the end users » Full competition among access providers service providers and service providers » Neutral operator (open access) » Full competition among service providers FIGURE 1 Municipal broadband networks business models Source: IFC. Note: Services and content refer to retail connectivity services and value-added contents. 2. Under a Wholesale Access Model, municipalities are PPP contracts for MBNs can be grouped into two categories involved in the commercialization of wholesale access to depending on the city’s involvement in the financing and the broadband network. Private sector operators purchase construction of the network: wholesale broadband access from the municipality and 1. Municipality-funded MBN. This category includes PPP in turn provide Internet access services to end users. contracts such as a third party-run service, lease, and special Examples include Ting in Westminster-U.S. (Case Study 2) purpose vehicle (SPV). Under the third party-run service and Wireless@SG, a wireless network supported by the city contract, the network is funded by the municipality, but of Singapore (Case Study 5). end users’ connectivity is provided by a private sector-led 3. Under a Fully Integrated Model, municipalities are involved operator (such as a mobile network operator expanding in the entire value chain, from passive network deployment to into fixed broadband services, or an Internet service activation of the network and services to end users. Examples provider). End users pay a monthly subscription price to the include Anacortes Fiber Internet in the United States (Case municipality, which transfers a share of the revenue to the Study 3) and Johannesburg Wi-Fi Network (Case Study 6). private network operator to cover network maintenance Historically, the networks that went to a fully integrated expenses and operating and quality of services expenditures, model created most value but also carried the greatest and allows for a return on capital. Under a lease contract, risk, e.g., Colt Telecom in London (UK), Torch Telecom in subscriptions fees are collected by the private sector Yorkshire (UK), and Isis in Dusseldorf (Germany). operator, which transfers a share to the municipality to These business models can be funded through public funds or cover the network rental price. Under an SPV contract, both public-private partnerships. In emerging markets, especially the municipality and a private entity co-finance, build, and low-income countries, cities may face limited availability of operate the network—and share the return on investment. public funds to support broadband network development. 2. Private sector funded MBN. This category includes PPP Broadband networks, especially fiber optic cables, can be contracts such as “build, operate, and transfer” (BOT), expensive to deploy, and PPPs can allow municipalities to and concessions. Under a BOT contract, the municipality attract private capital when it would not be feasible otherwise. facilitates the investment through a tender. The network is PPPs come in a variety of contracts and, as such, can be funded and built by a private operator; and end users pay adapted to local contexts, generate various incentives, and a monthly subscription price to the municipality, which achieve balanced partnerships, where each party focuses on its transfers a share of the revenue to the private network area of expertise and shares risks and benefits associated with operator to cover network maintenance expenses and the network deployment. operating and quality of services expenditures, and allows 3 This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. for a return on capital. Under the concession contract, • Increased revenue through taxation of new services in the network is funded, built, and operated by a private sectors such as tourism, e-commerce, and transportation. sector company in return for concession fees to be paid to • Resilience. Access to high-speed Internet can support a city’s the municipality for the uses of municipal resources such preparedness for emergencies and resilience to disasters or as street poles and ducts. In this case, the private sector shocks induced by events such as the COVID-19 pandemic.14 company owns the relationship with the end customers. For private sector investors, especially broadband operators, However, under a wholesale open-access business model, the MBNs can deliver a number of benefits, including: private sector company services telecom operators, which in turn serve end customers. Medellin, the second largest city • De-risking of expansion of broadband network in in Colombia, is considering the development of a municipal high-cost or low-profitability areas, thereby supporting broadband network under a PPP model in partnership with enhanced revenue growth for telecom operators. a private infrastructure company responsible for financing, • Improved productivity growth for businesses through designing, building, operating, and maintaining a neutral digitalization and development of tech ecosystems, as fiber optic network during the life of the contract. MBNs enable increased access to quality connectivity for businesses. Municipal residents can benefit from digital Private partners are often infrastructure/utilities companies inclusion, increased job opportunities, and economic and with the potential to leverage their existing infrastructure as social inclusion. well as public infrastructure to generate economies of scope, resulting in capex savings. More specifically, MBNs can support: • Digital inclusion through increased access to affordable Opportunities Offered by Municipal quality broadband Internet. A recent study from the United Broadband Networks States finds that municipal broadband networks come with The expansion of broadband connectivity is generally lower prices and higher quality than private networks.15 associated with increased social welfare10 because it can enable • Increased job opportunities through the development of efficiencies, innovation, and inclusion across an economy.11 local digital ecosystems, with digital startups creating MBNs, when economically desirable, can generate numerous employment opportunities, especially for women and youth economic and social benefits to local stakeholders, especially in verticals such as ride hailing, e-delivery, and bike sharing. local government, local businesses, and municipal residents.12 • Economic and social inclusion through improved access Local businesses can leverage increased access to high-speed to municipal services, including public schools and civic Internet to support digitalization of operations and services, engagement (such as voting) for low-income individuals. For engage in digital entrepreneurship and innovation, and example, in Nigeria, mobile broadband coverage reduces the strengthen their integration into national and international proportion of households below the poverty line;16 in France, value chains. broadband expansion resulted in higher income gains for Key opportunities for local governments include: the poorest than for middle-income earners or the rich, • Improved delivery of municipal services through access primarily through increased employment in manual jobs.17 to quality digital connectivity. Examples include online payment of municipal taxes and online requests of access Challenges Posed by Municipal to municipal facilities. Broadband Networks • Smart city projects through digitalization of municipal The development of MBNs entails a number of challenges for infrastructure. Cities can leverage high-speed Internet both municipalities and private sector operators.18 The most access to support improvements in transportation networks common challenges include: (e.g., e-ticketing and online scheduling of public buses, bike • PPP contract design. MBN projects can fail due to limited sharing), water and sewage systems, waste management, incentives embedded in the PPP contract or inadequate and a transition to smart power grids. risk sharing between the private sector operator and the • Monetization of municipal infrastructure. MBNs procuring public authority. The design of the PPP contract can rely on infrastructure owned by municipalities is critical to the successful implementation of any MBN and therefore deliver additional revenues to the local project; and particularly important are clauses that increase government. For instance, there are economies of scope private sector participation through adequate risk sharing, as between municipal power providers and municipal well as aligned incentives between the procuring government telecommunications providers.13 authority and the private sector partner. 4 This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. • Network upgrade needs. Unlike traditional utilities Romania) illustrates how regulatory interventions can be that are relatively static such as electricity distribution, used by cities to increase quality of connectivity. In Case broadband is dynamic, requiring regular investment Studies 2 and 3, the city is considered too small by local to keep up with changing technologies. Failure Internet service providers to deploy fiber. Westminster to anticipate investment in network upgrades can and Anacortes used different strategies for their municipal negatively affect the economic viability of the MBN in broadband networks. Case Studies 4, 5, and 6 address an the medium to long term. “affordability” issue to bridge the digital divide through the • Crowding-out of the private sector. Private sector-led deployment of free Wi-Fi networks. network operators focus on potential profitability, while municipalities tend to respond to other factors, including CASE STUDY 1 political considerations (for example, the desire to provide Bucharest, Romania: Availability of Quality competition to incumbents or extend the network to Connectivity Under the Passive Infrastructure Model underserved areas and users with limited disposable CHALLENGE: In 2002, Bucharest allowed a reduction of income). As a result, municipal providers tend to serve deployment costs for aerial cable, which fostered fiber cable markets that private operators do not.19 deployments. By 2006, Bucharest was full of overhead However, the presence of a municipal provider in a market cables, affecting the city’s aesthetic and creating safety and can decrease the probability that a private operator also reliability issues. serves that market, with the risk that the municipality SOLUTION: Bucharest decided to build a municipal citywide creates a monopoly over the infrastructure. Municipal network of ducts and encouraged telecom operators to move networks are often deployed first in low-cost, high-return their cables underground using this new infrastructure, and business districts, making it difficult for private sector a 49-year PPP was signed with UTI in 2008. A dedicated operators that would have been prepared to develop the company (Netcity) was set up, with exclusive rights to network without the government incentives. 20 The presence implement and manage Bucharest’s telecommunication of an MBN can be associated with limited incentives infrastructure network. for private sector operators to upgrade their networks, As part of the PPP, Netcity had to build and operate (BOT) especially in densely populated cities. 21 the network with 100 percent private investment; royalties • MBN project management. Municipal broadband (12 percent of revenues) were paid to the city for concession networks are complex infrastructure projects that require rights; and wholesale open access to the ducts was provided a long-term strategy, relevant expertise, and significant at regulated tariffs. funds. There is a history of municipal networks that failed OUTCOMES: Some 11,230 buildings were connected, 880 to meet their financial targets, forcing taxpayers and or kilometers of fiber was deployed on 1,382 streets, and 330,000 municipal utility customers to shoulder large financial inhabitants were covered at the end of 2012, after $40 million losses. 22 Organizational skills and financial capabilities of investment. are needed to successfully manage complex municipal Network deployment stopped between 2013 and 2017 due broadband network projects. Such capabilities are limited to a dispute over Netcity’s tariffs, which were deemed high in many emerging markets, especially in low-income by the telecom regulator and were challenged by some of countries. Several municipal networks have failed, and the small ISPs in the country. In 2018, Netcity and Bucharest those that remain financially viable often owe their success municipality signed an amendment to the tariffs and work more to government subsidies or unique circumstances resumed to double the length of the network to over 1,800 than to their ownership model. 23 kilometers. Some 1,520 kilometers of cable were deployed and Case Studies of Successful Municipal 20,300 buildings were connected by the end of 2019. Broadband Networks A number of initiatives have been implemented, mostly in CASE STUDY 2 advanced economies, with lessons that can be relevant for Westminster, Maryland, United States: Availability of Quality Connectivity Under the Wholesale Access Model emerging market municipalities and private sector investors seeking to develop MBNs. Case Studies 1, 2, and 3 address CHALLENGE: Westminster is a relatively small city (19,000 “availability or quality” issues, using each of the three inhabitants) with no fiber option from local ISPs. The city business models discussed above. Case Study 1 (Bucharest, considers a fiber broadband network a necessity for its long- 5 This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. term development, but it did not want to get involved in the the 12,000 telephone booths located throughout the city. marketing of the offers and wanted instead to strengthen There was a strong desire to help bridge the digital divide, so competition in the local market. the new booths would have to be spread throughout the city and include free phone and Internet access. Also, NYC didn’t SOLUTION: In 2014, Westminster decided to build a municipal want to pay for the new booths. citywide dark fiber network (paid, built, owned, and operated by the city of Westminster). Total cost was estimated at SOLUTION: NYC signed a PPP in 2014 with a private $23 million. Westminster leased the network through a PPP consortium (CityBridge) for 12 years, 100 percent funded to a local ISP (Ting), which ensured revenues to the city of by private funds and 50 percent ad revenue to NYC for Westminster. Ting operates the network on an open and the concession rights. CityBridge oversaw the installation, nondiscriminatory access basis (with an initial two-year ownership, and operations, and was responsible for building period of exclusivity), and Ting and Westminster shared the the necessary optic infrastructure under the streets. The risks in case the project did not generate enough revenue. resulting kiosks provide free phone calls in the U.S., free access to the Internet through an integrated tablet, and free Wi-Fi. OUTCOMES: As of March 2019, Westminster received about $1 million in leasing revenue. About 108 miles of fiber optic cable OUTCOMES: As of Sept. 2020, after five years of operations, have been deployed since October 2014, and 5,774 premises are 1,800 kiosks have been deployed. Ad revenues have been reached by the network, with a conversion rate of 20 percent, slower than initially expected, slowing the deployments or 1,147 customers signed. and payments to NYC. The kiosks have been used for over 500,000 average calls per month, one billion total sessions, CASE STUDY 3 and five million monthly users in September 2018. The most- Anacortes, Washington, United States: Availability dialed number on the kiosks was the helpline for the state’s of Affordable Quality Connectivity Under the Fully electronic benefit transfer system, which distributes food Integrated Model stamps to low-income residents. CHALLENGE: Anacortes is a relatively small city (18,000 CASE STUDY 5 inhabitants) with no fiber option from local ISPs. In 2016, the Wireless@SG, Singapore: Improved Affordability of city investigated ways to upgrade the radio telemetry system Quality Connectivity Under the Wholesale Access Model used to monitor its water and wastewater utility. The system included a water treatment plant, a wastewater treatment PROBLEM: Singapore decided to promote a wireless plant, 23 sewer pump stations, four water pump stations, four broadband lifestyle among the city’s residents. It launched a water reservoirs, and other facilities (including fire stations). nationwide FTTH program with a carrier-neutral network. However, affordability and quality remain limited for many SOLUTION: Anacortes decided to deploy a fiber backbone users. The city considered launching Wireless@SG, a Wi- for its own use (mainly telemetry for its water utility) and Fi network in parallel, as the nationwide FTTH program, to leverage this asset as a backbone to deploy a full FTTH providing free Wi-Fi access, no usage limitation, and seamless network. The fiber network has been designed, owned, paid, roaming between hotspots. built, and operated by the city. There was a 20 percent price discount for low-income households. SOLUTION: A PPP was agreed to between the government and private operators. The network opened in December 2006 OUTCOMES: Phase 1 (2017): 33 miles of fiber have been deployed with three operators (iCELL Network, QMAX Communications, in water pipes over two years for telemetry purposes. Total cost and SingTel). The program was initially designed to last for of phase 1: $3 million. two years (to the end of 2008) but has been extended several Phase 2 (2019): FTTH trial. 1,000 premises reached, with a times. IMDA, the development agency, temporarily provided conversion rate of 40 percent. subsidies to operators and premises owners. Phase 3 (2021): full network to be deployed within four years. OUTCOMES: Between 2006 and 2009, 7,500 hotspots Estimated cost of phase 3: $12 million. were created with 512 kbps download speed connecting 1.5 million users, at a cost of US$30 million subsidy by IMDA. CASE STUDY 4 By 2018, 20,000 hotspots were deployed (1 hotspot per 280 New York City, United States: Connectivity Service inhabitants), with 5 Mbps download speed. Affordability Through a Citywide Wireless Network By June 2018, 2.5 million users logged into Wireless@SG each Under the Passive Infrastructure Model month (roughly 45 percent of the population) with usage at CHALLENGE: In 2014, NYC launched a call for ideas to reinvent approximately 11 hours per user per month. 6 This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. As such, and depending on the city context, a passive CASE STUDY 6 infrastructure business model should be considered first, City of Johannesburg, South Africa: Improved Affordability followed by the wholesale access model and the fully of Connectivity Under the Fully Integrated Model integrated business model, respectively. CHALLENGE: MTC (Metropolitan Trading Company) is Granting access to public furniture such as bus stops and street a Municipality Owned Entity in charge of managing lights, encouraging infrastructure sharing, or coordinating Johannesburg’s broadband network (over 1,100 km of fiber road digging works between utilities when deploying fiber may cables deployed). The City of Johannesburg (CoJ) wanted to bridge the digital divide, as half of its 4.8 million residents be enough to reduce deployment costs and incentivize private and 80 percent of informal settlement residents did not sector investment in MBN. When incentives for private sector have access to the Internet in 2015. CoJ decided in April 2014 investment in local broadband networks are limited, municipal to leverage its already existing fiber network to deploy free engagement should be minimal and based on an open access Wi-Fi throughout the city. model (e.g., non-discriminatory, cost-oriented, and with stable tariffs), and should adhere to national network standards to SOLUTION: A Wi-Fi network fully paid by CoJ. The target foster service competition. was to install 1,000 hotspots by 2016, with free access to a range of basic services through a new portal, “Maru A Jozi.” Cities will continue to play an important role in the expansion It included 300 MB per day and unlimited access to the of broadband networks with the advent of 5G, which requires portal (www.maruajozi.joburg). The city recruited 3,000 a strong densification of networks and robust backhauling. To ambassadors equipped with tablets to train CoJ residents to support new services requiring higher bandwidth and lower use free Wi-Fi and the portal. latency, 5G “small cells” will need to be deployed every 200 meters in dense urban areas. Such high deployment density OUTCOMES: By mid-2016, over 400 hotspots were will only be possible through the use of street furniture. deployed and 25,000 citizens trained. After the election of a new mayor in 2016, the project was considered Municipalities may have no choice but to get involved in nonessential and all deployments stopped. By mid-2020, broadband deployments since they own a large portion of 84 hotspots remained with an average of 6,000 single both street furniture and underground infrastructure (ducts, devices connecting each day to the network, or about 71 manholes, sewage networks). They could take advantage of this single users per day per hotspot. Following the election to facilitate infrastructure sharing between telecom operators, of a new mayor in 2019, and with the advent of the as well as other network operators, in order to reduce costs and COVID-19 crisis, CoJ relaunched its free Wi-Fi project ($2.5 nuisances and ensure telecom operators provide full coverage million per year over 3 years). Service has been upgraded of the city, ensuring that no resident is left uncovered. to 500 MB per day. ACKNOWLEDGMENTS Looking forward The authors would like to thank the following colleagues Ensuring that all citizens and firms are properly connected and consultants for their review and suggestions: to the Internet has become an essential component of smart within Telecom, Media, and Technology (TMT), Global city programs, requiring strong city involvement through Infrastructure, IFC: German Cufre, Manager; Ariana Batori, municipal broadband networks. However, successful Senior Investment Officer; Charlotte Kaheru, Senior Industry development of a MBN depends on a clear screening of the Specialist; Ahmed Medhat Hassanein, Senior Investment Officer; Laurent Andiazabal, Consultant, Telecom, Media, opportunity and scope for local government intervention. and Technology Upstream, Global Infrastructure, IFC; within The World Bank Group’s Maximizing Finance for Economics and Private Sector Development, IFC: Peter Development (MFD) approach provides a framework for Mockel, Principal Industry Specialist, Climate Strategy and such screening: a clear priority must be given to commercial Business Development; Anselm Dannecker, Consultant, financing, policy reforms, and risk mitigation instruments Thought Leadership; and Thomas Rehermann, Senior before public and concessional financing are considered. 24 Economist, Thought Leadership. 7 This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group. 1 OECD. 2015. “Development of High Speed Networks and the Role of Municipal Networks.” https://www.oecd.org/officialdocuments/ publicdisplaydocumentpdf/?cote=DSTI/ICCP/CISP%282015%291/FINAL&docLanguage=En. 2 Strover, Sharon, Martin J. Riedl, and Selena Dickey. n.d. “Scoping New Policy Frameworks for Local and Community Broadband Networks.” Forthcoming in Telecommunications Policy. 3 IFC estimates based on data from ITU, 2019. 4 A number of survey results suggest sustained demand for online services in the recovery phase of the pandemic. See: Google, Temask, Bain & Company. n.d. “e-Conomy SEA 2020 – At Full Velocity: Resilient and Racing Ahead.” https://storage.googleapis.com/gweb-economy-sea.appspot. com/assets/pdf/e-Conomy_SEA_2020_Report.pdf. 5 Gillet, Sharon E., William Lehr, and Carlos Osorio. 2004. “Local Government Broadband Initiatives.” Telecommunications Policy, Vol. 28, Issue 7-8, pp. 537-558. https://www.sciencedirect.com/science/article/pii/S0308596104000539. 6 Gross domestic product per square kilometer (GDP/km2). For instance, the first city fiber networks in the EU were started in London, Frankfurt, and Paris, with a high density of financial institutions ready to pay for them. 3G and 4G were first rolled out in cities such as Tokyo with very high GDP density. 7 Troulos, Costas, and Vasilis Maglaris. 2011. “Factors Determining Municipal Broadband Strategies Across Europe.” Telecommunications Policy, Vol. 35(9), pp. 842-856. 8 In the U.S., 560 municipal broadband networks had been reported as of January, 2020, and more than 300 communities are served by cooperatives. www.muninetworks.org/communitymap 9 https://www.wifimap.io/. 10 ITU. 2020. “How Broadband, Digitization and ICT Regulation Impact the Global Economy.” https://www.itu.int/dms_pub/itu-d/opb/pref/D-PREF-EF. BDR-2020-PDF-E.pdf. 11 World Bank. 2016. “World Development Report 2016 - Digital Dividends.” https://openknowledge.worldbank.org/bitstream/ handle/10986/23347/9781464806711.pdf. 12 Mandviwalla, Munir, et al. 2008. “Municipal Broadband Wireless Networks.” Communications of the ACM, Vol. 51, No. 2, pp. 72-80. https://cacm. acm.org/magazines/2008/2/5455-municipal-broadband-wireless-networks/fulltext. 13 Hauge, Janice A., Mark A. Jamison, and Richard J. Gentry. 2008. “Bureaucrats as Entrepreneurs: Do Municipal Telecommunications Providers Hinder Private Entrepreneurs?” Information Economics, and Policy Vol 20 (1), pp. 89-102. 14 ITU and UNESCO. 2020. “The State of Broadband – Tackling Digital Inequalities: A Decade for Action.” https://www.itu.int/dms_pub/itu-s/opb/ pol/S-POL-BROADBAND.21-2020-PDF-E.pdf. 15 See section “Focus on the United States” in: Chao, Becky, and Claire Park. 2020. “The Cost of Connectivity.” https://www.newamerica.org/oti/ reports/cost-connectivity-2020/focus-on-the-united-states/#municipal-networks-offer-faster-more-affordable-service. 16 Bahia, Kalvin, et al. 2020. “The Welfare Effects of Mobile Broadband Internet: Evidence from Nigeria.” https://openknowledge.worldbank.org/ handle/10986/33712. 17 Houngbonon, Georges Vivien, and Julienne Liang. 2018. “Broadband Infrastructure and Income Inequality.” (July 16, 2018). Available at SSRN: https://ssrn.com/abstract=2963860 or http://dx.doi.org/10.2139/ssrn.2963860. 18 Brake, Doug, and Alexandra Bruer. 2021. “Broadband Myths: Does Municipal Broadband Scale Well to Fit U.S. Broadband Needs?” www.itif.org, June 24. 2021. 19 Hauge, Janice A., Mark A. Jamison, and Richard J. Gentry. 2008. 20 Brake, Doug, and Alexandra Bruer. 2021. 21 Landgraf, Steven W. 2020. “Entry Threats from Municipal Broadband Internet and Impacts on Private Provider Quality.” Information Economics and Policy, Vol. 52. 22 Yoo, Christopher, and Timothy Pfenninger, n.d. “Municipal Fiber in the United States: An Empirical Assessment of Financial Performance.” University of Pennsylvania Law School, https://www.law.upenn.edu/live/files/6611-report-municipal-fiber-in-the-united-states-an. 23 Brake, Doug, and Alexandra Bruer. 2021. 24 See for more details: https://www.worldbank.org/en/about/partners/maximizing-finance-for-development. 8 This publication may be reused for noncommercial purposes if the source is cited as IFC, a member of the World Bank Group.