Roles of local governments
Last updated on April 29, 2024
When it comes to expanding connectivity services in their region, local governments can play many roles to achieve a solution that best fits local needs and interests. Defining your role(s) in connectivity is critical to get the right people within the community to work together
Topics covered on this page:
- Potential roles of local governments
- Determining your role in connectivity
- Key issues in developing a public-private partnership
- Next steps
Potential roles of local governments
There are many roles that your local government can play in getting better connectivity.
Collecting and communicating relevant information is critical to the success of the connectivity planning process. Data helps to identify the projects the community needs most and build the funding case. This includes taking an inventory of existing assets and measuring local service demands to understand the needs of residents and businesses.
Through the management of a wide variety of infrastructure, local governments can create the conditions needed to reduce service delivery costs and attract new investments in service upgrades and expansions. This includes performing preparatory work on public assets, helping to craft the technical aspects of policies and agreements with private partners, or operating the network and delivering services to residents and businesses.
Adopting a connectivity-friendly policy and negotiating with service providers can help safeguard the interests of the community. This includes the legal preparation of policies, contracts, and agreements to protect local taxpayers by ensuring direct and indirect costs are not transferred to the municipality (e.g. pavement degradation, liabilities).
Using the financial tools available to municipalities and regional districts can promote private investment and partnerships in capital-intensive infrastructure projects. Local governments may want to get involved directly in the financing of network deployment and operation, whether in full or in part, combined with provincial and federal grants. This can be done by leveraging public assets or by using the common financing options accessible to them, such as loans and taxation.
Building relationships among the many partners in the community that would contribute to and benefit from better connectivity is essential to the success of the connectivity planning process. A “whole community” approach can help build support in the community and enable widespread adoption of digital tools. This includes working with residents, local businesses, and community institutions to identify development goals through structured planning, consultations, and engagement initiatives.
Determining your role in connectivity
One of the key decisions to make in the connectivity planning process is whether your community will partner with a service provider or build its own network to improve connectivity in your area. Each option has pros and cons.
A private sector ownership structure represents less risk for local governments. But it also means less control over the design of the network. Community-owned and operated infrastructure offers potential revenue streams. But it also introduces financial risks and sustainability challenges in the long run. Communities and private companies can also collaborate to share the risks and rewards of a network investment.
Thinking through your community’s goals and objectives will help you identify what aspects of a project you want to take on, and which aspects you are comfortable with outsourcing to a private partner.
Local governments with a larger tax base may choose to own or operate broadband infrastructure or deliver telecommunications services. Like roads and water, broadband infrastructure can be a strategic investment to achieve a larger development goal.
A public-private partnership is a less expensive option that enables to combined strengths of service providers and local government. For example, local governments have administrative skills and billing systems already in place, while small service providers have technical expertise.
Key issues in developing a public-private partnership
Public-private partnerships offer an alternative to an entirely government-owned and operated network. It is a contractual arrangement where the public and private sectors share the resources, risks, and rewards. The goal is to provide greater efficiency, better access to capital, and protect the interests of local taxpayers.
Public-private partnerships can take many forms and can divide roles and responsibilities in a variety of ways. There are, however, several issues that are likely to arise during negotiations. These negotiations can be very complex, and their results can affect municipal operations, personnel, property, and finances.
One primary concern of all parties when planning the deployment of a network is what geographic areas the network will cover.
Service providers will lean towards deploying first to areas where the potential for profit is highest. Local governments will want to prioritize areas where the social and economic benefits are believed to be the greatest.
Before meeting with a potential partner, it is helpful to determine the minimum coverage area that a provider must commit to as part of the agreement.
Local governments can leverage access to infrastructure and rights-of-way during negotiations.
Municipalities and regional districts need to consider whether a fee reduction can improve connectivity in their region.
Any service provider needs to get permits for construction as the project progresses. Local governments should work with service providers to make sure that applications are easy to submit and processed quickly to reduce construction costs and time.
Another way to streamline the permitting process is to waive fees, although the obvious financial implications of this tactic should not be overlooked.
The term "open access" refers to a policy requiring that owners of broadband infrastructure provide access to their network to service providers for a fee.
It is also a business model whereby broadband infrastructure is built by a local government and then leased to service providers. This strategy is used to promote competition and reduce the risks for service providers. From the perspective of the service provider, however, open access may reduce profits because competition will likely lower market prices for services.
One potential compromise is to allow your private partner to be the exclusive service provider to use the server for a limited period, allowing it to recoup upfront costs more quickly, followed by an open access policy.
Free network services are often an important negotiating point for local government officials because they can help municipalities and regional districts save money.
Local government officials should review their existing technology costs, and try to reduce them by negotiating as many free services as possible. This could include ensuring services to certain public facilities such as schools, low-income housing facilities, community centers, and free public WiFi hotspots.
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Next steps
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Contact information
connectedcommunities@gov.bc.ca