Innovative investment models ease financial risks for cities Cities are increasingly turning to the private sector to address the growing need for affordable broadband and the services they enable. Shared investment models have significantly eased the financial burden on cities. Meanwhile, the decreasing costs of 5G infrastructure, the availability of shared spectrum, and the collaborative distribution of capital and operational expenses are making private 5G networks a more accessible solution for urban connectivity. By building and owning private cellular networks, cities can reduce operational expenses while providing bespoke coverage and speeds that public networks cannot support. Unlike public cellular networks that use pay-per-device models, private 5G networks allow cities to sustainably scale the number of endpoints without incurring expensive per-device access costs.34 A municipality’s ownership of the network allows it to take advantage of economies of scale as the number of net new devices it uses is nominal as network capacity and technologies continue to improve. The opportunity cost of not implementing these innovations would have been the continued strain on city resources and missed opportunities to improve public safety and digital equity. Improving public safety and digital equity in Las Vegas In 2023, the City of Las Vegas and NTT DATA formed a partnership to deploy a private 5G network.35 The partnership addressed two key challenges: improving broadband access in underserved areas and enhancing the city’s decision-making through real-time data analytics. NTT DATA’s smart solutions in Las Vegas were justified through measurable outcomes and cost savings. The partnership has led to several positive outcomes for the city, including: –Enabled reliable, low-latency communication, crucial for expanding internet access to over 1,000 students and families in low-income areas –Reduced wrong-way driving incidents by over 90%, which translates into more than $1 million in annual savings from avoided accidents and reduced patrol costs –Improved city planning with data-driven insights from smart parks and traffic management systems, enabling better resource allocation and infrastructure development Its success can be attributed to a few key factors: strong leadership and personal sponsorship from city officials, a clear vision for digital transformation and the flexibility of solutions to scale with the city’s changing needs. The partnership in Las Vegas may serve as an example for other cities to follow. Scaling business models to new cities The opening and sharing of spectrum that is currently only available for public network operators will only increase, unlocking new opportunities for mutually beneficial partnerships. As cities explore collaborative models for deploying broadband, the following factors can be taken into consideration: –The importance of continuous stakeholder engagement and the need for adaptable solutions that can evolve with the city’s changing needs –The value of a phased approach, starting with pilot projects and gradually expanding the scope to maximize impact and minimize risks –The appropriation of seed funding from national and local sources to jump-start various cities to activate connectivity initiatives –The investment into technological talent, including training and hiring a workforce with expertise in private 5G networks and AI to catalyse greater innovation in cities. The opening and sharing of spectrum that is currently only available for public network operators will only increase, unlocking new opportunities for mutually beneficial partnerships. 19 Shaping Tomorrow: Responsible Innovation for a Brighter Future

Shaping Tomorrow Responsible Innovation for a Brighter Future 2025