A Case for Public-Private Broadband Partnerships: The Rise and Fall of Bryan Municipal Utilities’ Internet Services

Overview

On December 9, 2024, the Bryan Municipal Utilities (BMU) discontinued its internet services, following a notice letter from the BMU Director of Utilities Derek Schultz. In his letter, Schultz announced the discontinuance of the BMU’s internet service after 24 years, citing reasons such as declining revenues, decreasing customer subscriptions, and the substantial capital investment required to replace obsolete equipment, which rendered BMU’s internet service uncompetitive. This blog post is a brief study into the failure of the BMU’s internet service.

The System

Bryan Municipal Utilities (BMU) launched its communications services in 1998, introducing a hybrid fiber-coaxial system designed to deliver cable television, internet, and high-speed data services to the residents of Bryan, Ohio. This initiative was driven by community support for a new cable television system and enhanced high-speed data transfer capabilities. The infrastructure featured over 50 miles of underground fiber optic lines, making it one of the most fiber-rich systems in the US. With 54 fiber nodes, each serving up to 120 homes and equipped with standby battery backup, the design ensured that the average customer was within a block of a fiber connection and gained access to greater bandwidth and connection reliability.

The Downfall

Unfortunately, as mentioned above, BMU experienced a decrease in both revenues and subscribers, indicating reduced competitiveness and customer migration to alternative providers. Moreover, the aging infrastructure required significant capital investment to replace outdated equipment. This financial burden made it challenging for BMU to maintain a competitive edge in the rapidly evolving broadband industry.

One notable characteristic of BMU’s communications services was the absence of a partnership with a private internet service provider (ISP). Instead of collaborating with a private ISP, BMU found itself in direct competition with them, making it harder to sustain its operations. A public-private partnership could have provided BMU with access to greater financial resources, technical expertise, and infrastructure investments that private corporations typically possess. Without such support, BMU struggled to keep up with advancements in technology and maintain the level of service required to remain competitive. The lack of private-sector involvement ultimately limited BMU’s ability to adapt, expand, and generate the necessary revenue to sustain its internet services long-term.

Takeaway

The key takeaway is that public broadband providers can greatly enhance their ability to serve their public interest by entering public-private partnerships with private ISPs. These partnerships allow public entities to leverage private sector resources, funding, and technical expertise while still prioritizing community needs. By working together with private ISPs, public broadband providers can expand broadband access, maintain financial sustainability, and keep up with technological advancements without bearing the full financial and operational burden alone. Without such collaboration, public broadband providers risk struggling with outdated infrastructure, declining revenues, competition with well-funded private ISPs—challenges that ultimately contributed to BMU’s internet services downfall.