How does a PSBN model cost less than traditional incumbent telco carrier service?
Our PSBN Business Model costs less than traditional telco carrier services in Canada, due to several key aspects of our model, and due to the nature of the Canadian Telecommunications market:
- Investment offset via public-private partners that have similar mission-critical & Cybersecurity needs (ie. utilities, airports and transit partners in a PSBN MVNO model);
- Advantage that a non-profit provides in cost structures (ie. little to zero profit margin vs. Big 3 Canadian telco carrier margins which are among the highest across telcos worldwide);
- Low-cost government infrastructure sites or Rural Broadband partnerships (ie. water towers, buildings and other assets which can serve to reduce the number of 3rd party site leases or new-build towers);
- Low-cost government fiber network backhaul and microwave backhaul assets for eNodeBs (ie. pre-existing municipal / provincial / utility backhaul network infrastructure);
- Potentially free or low-cost spectrum license for Band Class 14 spectrum (ie. less cost to amortize across user fees or corporate structure);
- Potential for partial spectrum sub-leasing with major carriers using a “Neutral Host” business model, such that in municipal or provincial governments or consortia can maintain ownership of assets in regions where carriers refuse to invest today – and lease back access as populations grow and carriers gain interest in providing commercial services.
- Access to CRTC mandated wholesale telecom rates that are pre-negotiated with the major Canadian common carriers, via MVNO or Hybrid Public Safety Carrier business models;
In our PSBN Innovation Alliance studies and whitepapers (URL Link to whitepaper section of website) we have comprehensively modelled the Ontario telecom market and determined that conservatively, using the key tenets of our model above that Public Safety users and agencies alone in the province could easily save between $2B and $4B all-in of raw cost and risk mitigation costs over a 20-year operational period. A Hybrid / MVNO based model can generate significant savings for Canadian First Responder agencies for the key reasons noted above: