operate a broadband network on its behalf. The government typically funds the entire network and the infrastructure remains in government ownership.The private company normally gets a contract (after a competitive tender) for a wholesale, open-access network. It may also be required to market the wholesale services to other Internet Service Providers (ISPs), and in some cases to offer retail broadband services as well. Contracts typically last between 10 and 15 years, after which a competitively procured contractor may be appointed to operate the network. Most, if not all, funding for this approach needs to come from the public sector. Unlike the private DBO and JV investment models, the private sector does not make any financial investment in a public outsourcing deal. Instead, the private sector constructs the broadband infrastructure and operates the broadband network on behalf of the government, in return for payments at pre-agreed milestones.Although the government is fully responsible for financing and financial risk, this approach does give it a greater responsibility and control over the design of the network and the technical- and service-performance criteria. Typically, the government defines clear performance milestones for the private operator (such as network roll-out timescales, take-up and service levels) as part of the contract. Failure to meet these terms may result in fines or other penalties.Two examples of private DBOs are set out in greater detail below. 12 Trends in Telecommunication Reform 2016 Table 1.4: Selected examples of public outsourcing Name of private DBO Description National ICT Broadband Backbone (NICTBB), Tanzania38 National core fibre network built across Tanzania. (See case study below)City of Johannesburg Broadband Network Project (South Africa)39 Fibre network operated across Johannesburg by the government. However, in a recent development the city cancelled the contract and is proposing to convert it into a public DBO. (See case study below)Auvergne (France)40 This model leverages the expertise of the private sector, while ownership remains in the public sector. The private operator receives an income to run the network for ten years.Metropolitan Area Networks (Ireland)41 Sells open-access, active and passive, wholesale services to operators in areas that do not have adequate private-sector broadband provision.Shetland SHEFA 2 Interconnect Project (Scotland)42 This project aims to provide an adequate backhaul network in the Shetland Islands in areas where such infrastructure is currently unavailable.South Yorkshire (UK)43 Local authorities invested in an FTTC network, with a partnership arrangement for network management. (However, this initiative is no longer running and has reverted to a private DBO.)DORSAL (France)44 A collection of local authorities invested in network backbone, DSL and WiMAX services.Project Isizwe municipal Wi-Fi (South Africa)45 The private-firm Project Isizwe is being contracted by several municipalities to deploy Wi-Fi hotspots in public buildings and schools.Western Cape Government broadband (South Africa)46 The Western Cape Government has outsourced the deployment and management of a network connecting all provincial government buildings to Neotel.Source: Analysys Mason, 2015