Broadband Services

Successful Approaches by Utilities & Co-ops in Providing Telecommunications and Broadband Services

Successful Approaches by Utilities & Co-ops in Providing Telecommunications and Broadband Services

Broadband service is one of the foundations of a successful society, powering commerce, education, utility services, and government. Where there are gaps in service, local electric co-ops, utilities, and communities have formed telecommunication systems to fill the void. How do these systems get up and running? This article discusses the steps to consider.

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The 7 Major Costs in Providing Telecommunications Services
Broadband Strategy and Accounting Russ Hissom, CPA Broadband Strategy and Accounting Russ Hissom, CPA

The 7 Major Costs in Providing Telecommunications Services

If your community or utility is contemplating establishing a telecommunications utility to provide services (cable tv, broadband internet, phone service), there are many considerations. This article scratches the surface of the details on the costs that will be incurred in proving telecommunications services. Here are the major 7 cost types:

  1. Content

  2. Broadband connection

  3. Management and administration

  4. Sales and marketing

  5. Depreciation

  6. Routine capital

  7. Debt service

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Don't Commit to Offering Broadband Without a Feasibility Study
Broadband Strategy and Accounting Russ Hissom, CPA Broadband Strategy and Accounting Russ Hissom, CPA

Don't Commit to Offering Broadband Without a Feasibility Study

Is your community or utility considering offering telecommunications services? With $65 billion of funds allocated for broadband grants in the 2021 Infrastructure Act, opportunities are available to make entry into these service areas more financially feasible. But, before jumping into this business venture, there is still due diligence that your community should do, just like starting in any new business.

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