Municipalities can choose to build and keep ownership of their network's infrastructure, but contract with private companies to act as broadband service providers. In such cases, contracts can include open, wholesale access requirements to stimulate competition and lower prices for consumers.

Benefits: An open, wholesale network serviced by a private provider can promote competition and provide universal broadband access to the community. It can also free the city from having to provide technical support, if it outsources network maintenance to the service provider. The city can agree with the service provider to receive a portion of the revenues from subscription fees or other sources.

Risks: Without an open access requirement, private providers may decide to charge significantly higher prices to other providers for network access, essentially forming a monopoly on the network. This may decrease competition and drive costs higher than necessary to increase profits for the company.

This type of public/private partnership has seen great success in many communities around the country. The fiber-optic network built by the Chelan County's public utility district in Washington state, for example, offers high-speed broadband to its residents through 15 different service providers based in the area.