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Text Box: private consortium or cooperative wholesale arrangements, wherein communities help fund an initial build then assign ongoing operation and maintenance to private interests. For communities that prefer more ongoing involvement in the network’s administration and maintenance, a public utility business model could be suitable, especially in situations where existing community resources (typically incorporated within local government) can fund the initial build and can also support marketing, customer service, technical support and billing. Finally, nonprofit business models are suitable when foundation, loan or grant money is available to fund the build and it is most appropriate to outsource operation, maintenance and most other responsibilities to private agents. Nonprofit models have many forms. Grant programs that may cover rural broadband networks may be available. Examples at the federal level include HUD’s Community Block Grant program (see www.hud.gov/offices/cpd/communitydevelopment/programs/index.cfm) and the USDA’s Rural Economic Action Plan (REAP), now in a pilot stage (see www.ezec.gov/communit/reap.html). The Rural Broadband Coaltion, at www.ruralbroadbandcoalition.net, provides private grants. V. Financial Model This section of the Plan should present conservative income and expense expectations, carried forward over a five-year period. These expectations should follow from the description of a suitable financial model that has been developed according to clearly stated assumptions. The assumptions themselves should derive from the preceding sections of the plan with respect to the size of the community, the potential stakeholders, the performance requirements and the recommended business model. The description of the financial model does not need to follow a particular organizational structure, but should include the following subsections: Assumptions: Business model selection, bandwidth to be delivered, categories of users, infrastructure

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