The collaboration known as the Gigapower joint venture, forged between AT&T and private equity investment giant BlackRock in May, lent new legitimacy to the open access approach, which separates the provision of broadband services from the network operator.

• On the Seventh Day of Broadband, my true love sent to me:
  7 Layers to the Open Systems Interconnection Model and Open Access Networks
  One-hundred-and 66 Billion Dollars of American Semiconductor Investment
  56 States and Territorial Broadband Offices Implementing BEAD
  4.8 Million Challenges to Broadband Coverage Data
  $3.6 Billion Funds Remaining in the Affordable Connectivity Program
  24 Reverse-Preemption Pole Attachment States (2023 edition)
  And One Artificial General Intelligence

Another major operator venturing into the space is T-Mobile, which is set to become the primary tenant in a recently established $500 million partnership between Tillman FiberCo and private equity firm Northleaf Capital Partners.

The joint venture will allow T-Mobile to offer fiber Internet services to customers in markets across Arizona, Colorado, Florida, Nevada and Texas, all without investing a dime in the infrastructure.

In an industry long characterized by a preference for vertically-integrated ownership and control, incumbent providers are pivoting towards a model that emphasizes sharing networks.

What are open access network?

In an open access network, broadband infrastructure is owned by one entity, which can be either a public or a private entity and is often operated by a separate network operator. The network operator leases or shares the infrastructure with multiple retail internet service providers.

One can think of an open access network as a real-world implementation of the 7-layered Open Systems Interconnection model by the International Organization for Standardization. The OSI model is a broader construct for understanding the physical layer, data link layer, network layer, etc., in internet networking.

However, understanding the basics of the “layer cake” approach helps conceptualize the unique business and technical dimensions behind open access networks.

In an important contribution to this discussion, Broadband Breakfast’s Digital Infrastructure Investment Summit on December 5 demonstrated exactly how many forms open access networks can take. After a keynote presentation on the “Past and Future of Open Access Networks” by COS Systems Mikael Philipsson, a panel delved into diverse perspectives on such networks in the U.S.

The panel emphasized the differences and variations in several last-mile broadband deployments, including those of SiFi Networks, UTOPIA Fiber, Google Fiber, municipalities like the Eastern Shore of Virginia Broadband Authority and what panelists called the “utility lease model.”

In other sessions at the summit, panelists voice the belief that shared infrastructure is poised to become more common in broadband networks.

Regarding the AT&T-BlackRock joint venture of Gigapower, AT&T President of Broadband and Connectivity Initiatives Erin Scarborough highlighted scalability as a pivotal factor guiding AT&T’s choices, speaking at a Broadband Breakfast Live Online event in September.

Although Scarborough emphasized AT&T’s preference for the ownership model, she noted the agreement will allow the company to expand outside its traditional footprint.

“The model used by the joint venture will make sense to other ISPs, gain a lot of traction, and help break down historical biases telecos have had about not controlling all the assets,” predicted Gigapower CEO Bill Hogg during the event.

T-Mobile CEO Mike Sievert has also publicly acknowledged potential network capacity limitations for the company’s fixed wireless access service. At a conference in San Francisco in September, he said the open access model offers a “capital-light way to enter [the fiber] business and take advantage of [T-Mobile’s] embedded customer base and fantastic brand.”

Traditionally pioneered by municipalities

The large telecos appear to be displaying a newfound openness in their approaches to achieving growth. However, the open access model has historically been pioneered by  municipalities, city-owned utilities, and cooperatives in the U.S.

Founded by a consortium of 11 Utah cities in 2004, UTOPIA Fiber expanded its fiber footprint across five cities in Utah this year. UTOPIA now offers its 10 Gigabit services to residents in 19 cities spanning four states. The government organization completely funds the open access builds and network operations through subscriber revenue.

The acceptance of open access might gain new traction through the Washington state legislature. This year, a bill would require all state funding from the federal Broadband Equity Access and Deployment program, nearly $1 billion, to be used to build open-access networks in the state. The bill did not pass in 2023, but 14 of Washington’s 28 Public Utility Districts are committed to deploying citywide open access networks to improve access to telecommunications services. Initiatives like the one to build countywide dark fiber led by the Lewis County PUD are happening across the state.

In Vermont, 22 communities partnered with Great Works Vermont Internet to build open access fiber that is expected to serve 30,000 locations.

A number of city’s collaborated with SiFi Networks this year to announce citywide open access fiber builds. The company set an ambitious goal to pass 40,000 homes per month in early 2023.

For example, the network in Placenta, California will see 20,000 homes, businesses and institutions served by open access, alongside 70,000 households in Oceanside, California. The company announced agreements to partner with Cleveland, Ohio, Saratoga Springs, New York, and Sugarland, Texas this year.

How will the momentum behind open access networks – from telco giants to scrappy innovators to persistent municipalities – play out in 2024?

See “The Twelve Days of Broadband” on Broadband Breakfast

• On the First Day of Broadband, my true love sent to me:
  One Artificial General Intelligence
• On the Second Day of Broadband, my true love sent to me:
  24 Reverse-Preemption Pole Attachment States (2023 edition)
  And One Artificial General Intelligence
• On the Third Day of Broadband, my true love sent to me:
  $3.6 Billion Funds Remaining in the Affordable Connectivity Program
  24 Reverse-Preemption Pole Attachment States (2023 edition)
  And One Artificial General Intelligence
• On the Fourth Day of Broadband, my true love sent to me:
  4.8 Million Challenges to Broadband Coverage Data
  $3.6 Billion Funds Remaining in the Affordable Connectivity Program
  24 Reverse-Preemption Pole Attachment States (2023 edition)
  And One Artificial General Intelligence
• On the Fifth Day of Broadband, my true love sent to me:
  56 States and Territorial Broadband Offices Implementing BEAD
  4.8 Million Challenges to Broadband Coverage Data
  $3.6 Billion Funds Remaining in the Affordable Connectivity Program
  24 Reverse-Preemption Pole Attachment States (2023 edition)
  And One Artificial General Intelligence
• On the Sixth Day of Broadband, my true love sent to me:
  One-hundred-and 66 Billion Dollars of American Semiconductor Investment
  56 States and Territorial Broadband Offices Implementing BEAD
  4.8 Million Challenges to Broadband Coverage Data
  $3.6 Billion Funds Remaining in the Affordable Connectivity Program
  24 Reverse-Preemption Pole Attachment States (2023 edition)
  And One Artificial General Intelligence
• On the Seventh Day of Broadband, my true love sent to me:
  7 Layers to the Open Systems Interconnection Model and Open Access Networks
  One-hundred-and 66 Billion Dollars of American Semiconductor Investment
  56 States and Territorial Broadband Offices Implementing BEAD
  4.8 Million Challenges to Broadband Coverage Data
  $3.6 Billion Funds Remaining in the Affordable Connectivity Program
  24 Reverse-Preemption Pole Attachment States (2023 edition)
  And One Artificial General Intelligence

Run under the name NoGovInternet.com, the thrust of this campaign hinges on the argument that the government should steer clear of having a role in providing internet access.

Its primary target is UTOPIA Fiber, a coalition of municipalities with a hand in serving 60,000 broadband customers across 20 cities in Utah.

Fronting the campaign is Utah’s former House Speaker Greg Hughes, a Republican from the fast-growing city of Draper along the Wasatch Front.

During a FOX 13 News interview in December, Hughes raised concerns about government bodies regulating internet speed and pricing.

On its end, UTOPIA denounces what it considers “misinformation” driving the campaign and dismisses Hughes’ assertion suggesting the entity’s ability to control internet speed or access.

According to UTOPIA’s chief marketing officer Kim McKinley, the coalition of localities comprising UTOPIA Fiber lack control over either aspect.

“We don’t make any of those choices. The privately owned service providers are the ones who make those choices,” McKinley told KSL in an interview. 

Fifteen private internet service providers utilizing UTOPIA’s open access network are responsible for establishing price points and providing various speed packages. Proponents say this system allows for market-driven competition and consumer choice, ensuring a diverse range of options for users across the network.

Hughes also highlighted concerns about potential financial risks for cities partnering with UTOPIA. The campaign references hurdles encountered during UTOPIA’s launch 15 years ago.

“Some of UTOPIA’s early initiatives proved problematic, requiring some cities to step in to help cover bond payments,” said McKinley. 

“Since 2009, though, after implementing new operating procedures, network demand has always been sufficient to cover bond costs.”

As the largest, and fastest-growing open access network in the United States, UTOPIA has long been the target of groups opposed to public broadband initiatives.

In May, Bountiful, Utah voted unanimously (5-0) to collaborate with UTOPIA to extend fiber broadband to all residents after a years-long process. This initiative was met by a cable-funded group launching a petition opposing the city’s efforts. The opposition campaign ultimately failed as hired signature collectors couldn’t gather sufficient support from registered voters.

“We are being used as this example across the country for how to successfully do municipal fiber,” UTOPIA’s CEO Roger Timmerman told Fox 13. 

“The private company’s don’t like that much, so we are seeing these attacks trying to scare cities from doing that same thing, saying ‘There’s a lot of risk, there’s a lot of cost.’” 

The American Association for Public Broadband, a proponent of public broadband, issued a statement in response to the ads, labeling them as “dark money attacks” and attributing them to “big cable.”

Hughes affirms that there are currently no ongoing legislative endeavors tied to the Domestic Policy Caucus campaign. Furthermore, there is no active attempt to dismantle the current agreements between UTOPIA and its partner cities, he said.

He asserts that the responsibility for broadband and fiber development should remain with private companies. He’s vigorously advocating to spread this message.

Republicans have historically held opposition to municipal broadband initiatives, like that of UTOPIA Fiber, and proposed laws at times that aim to restrict or impose limits on municipal broadband initiatives citing arguments emphasizing free market principles, suggesting that government involvement in broadband provision might hinder competition or private investment. 

However, opponents argue that such laws limit consumer choice and prevent communities from obtaining high-speed internet access that might not be available or affordable from private providers.

At its peak, around 19 states in the U.S. had laws that effectively banned or restricted municipal broadband networks to varying degrees.

Though there are currently no attempts to dismantle UTOPIA, legislation has targeted the organization before.

Notably in 2014, a bill introduced by State Rep. Curt Webb, R-Utah, H.B. 60 was aimed at dismantling UTOPIA, reports Community Networks. 

As the bill was then written, it wouldn’t have just prevented UTOPIA from building to people willing to pay for it. It also would have required the shut down of any existing services and prohibited UTOPIA from maintaining their backbone that links cities together.

The open access session at the Digital Infrastructure Investment Summit Tuesday delved into diverse perspectives on such networks in the U.S., and emphasized differences and variations in several last-mile broadband deployments.

For example, SiFi Networks President Scott Bradshaw emphasized the importance of citywide infrastructure deployment with more than one internet service provider. In the 40 U.S. cities in 11 states in which SiFi operates, SiFi is the network operator, with a least a few ISPs offering services to consumers.

SiFi uses private financing to build, own and operate the network infrastructure – unlike several other models discussed on the panel.

For example, one alternative approach discussed was the utility-lease model, pioneered in Huntsville, Alabama, in a collaboration facilitated by the Broadband Group and the city’s Huntsville Utilities and Google Fiber.

On the panel, Broadband Group President Jeff Reiman touted the benefits of this public-private partnership, while also acknowledging that it was not truly or fully open access.

Under the Huntsville arrangement, the city utility had deployed fiber for smart grid purposes and chose to lease excess capacity to Google Fiber to improve local connectivity. Huntsville Utilities built a dark fiber network to pass everyone. But the city did not put in the drops, or the home-by-home connections.

Huntsville Utilities owns the system’s fiber backbone, but Google Fiber owns the line-to-home connections, manages all hookups and delivers internet services.

Is that open access?

SiFi’s Bradshaw took issue with that Huntsville model. He highlighted the critical juncture in which an ISP installs its electronics to the home. He said that that was the exact moment that the network could no longer considered open access.

Allowing service providers – in this case, Google Fiber – to install electronics hands control back to the ISP, and jeopardizes customer choice if that ISP exited the market. A truly open access network would ensure that no one ISP can control the customer base, said Bradshaw.

But in defending the utility-lease model, Reiman argued that it has proven to bring some of the benefits of open access: Competition and improved service options.

In fact, all Huntsville residents saw that as a result of the utility-lease arrangement, “When Google Fiber entered Huntsville, Comcast and AT&T immediately upgraded all of their infrastructure.”

Springfield’s City Utilities, in Missouri, followed a similar framework. There, the city leased its unlit fiber network on a nonexclusive basis to internet service provider Lumen Technologies, previously CenturyLink.

Weighing in on the exchange, moderator Christopher Mitchell, Director of the Community Broadband Networks Initiative at the Institute for Local Self-Reliance, said: “There’s a fair number of people who would say we still get some of the benefits of open access, and perhaps the ones that a community values the most, even if they give control of the electronics away.”

“I am a proponent of critical infrastructure being publicly accountable,” continued Mitchell. “But I can’t deny if I talk to Huntsville Utilities and they are happy with what they’ve done.”

Still other variations on open access

The panel agreed that open access, in its pure or three-tier form, describes a network in which a public or private entity builds and/or owns a broadband network complete with fiber drops; a network operator manages connectivity on a lit network; and multiple service providers sell services to individual customers or businesses.

The term ”wholesale broadband” is broader one. It refers to a high-capacity internet provider reselling services on its network through other, more limited retail customers.

Mikael Philipsson, CEO of COS Systems and the keynoter at the Summit,  recounted his experience in Sweden in which gigabit symmetrical connectivity is now available to 98 percent of citizens, and about 60 percent of customers are purchasing their broadband on open access networks.

In his view, open access is centered on providing a range of services to customers, allowing them to switch providers and services as needed.

Robert Bridgham, executive director of the Eastern Shore of Virginia Broadband Authority, exemplified the hybrid nature of the authority’s approach. It offers backbone service while also serving as an ISP.

“We are allowing proprietors to use our backbone, but we also provide end-user services. So we are effectively an ISP and an open access provider. Is it wholesale, is it open access? We don’t limit ourselves,” he said.

“You can see with my fellow panelists, we all have a little bit of a different variance,” said Bridgham, who said he found it fascinating that four experts could offer such distinct interpretations.

But as a whole, all panelists agreed that utility-lease, wholesale, and open access networks (whether constrained or completely open) all inject much-needed competition into a traditionally vertically-integrated model.

“The economics of neutral hosts are, I think, almost inevitable,” said Jonathan Adelstein, managing director at DigitalBridge Investment Management, which invests in shared telecommunications infrastructure.

“Towers are the primo example, but it moves down the line,” he said at the Broadband Breakfast Digital Infrastructure Investment Summit. “Particularly middle mile fiber is already neutral host, essentially.”

“Neutral hosts” own telecom towers and allow multiple wireless carriers to attach their equipment to them. Middle mile fiber cable, which connects local networks to internet exchange points, is typically used in a similar way, with multiple providers using the same strand to transfer data.

Another prime use case for shared infrastructure is indoor wireless connectivity, said Greg McLaughlin, CEO of AEX Automation Exchange, a company that provides software for fiber network operators.

“It just doesn’t make sense economically to build multiple networks in there when one network is more efficient and better utilizes spectrum,” he said.

David Bronston, special counsel at Phillips Lytle LLP, where he works with telecommunications providers on permitting, pointed to the New York subway system.

“You can’t get a more shared infrastructure than transit wireless in the New York City subways, which has all the carriers on it and a WiFi system,” he said. “When you come back from work everyone is on their phone. Shared infrastructure works.”

Shared last mile fiber networks, which provide connections to individual homes and businesses, are also set to become more common. AT&T closed a deal in May with investment giant BlackRock to build a 1.5-million-location open access network, meaning other internet providers could use the infrastructure to provide service to customers. 

Gigapower, the firm set up to manage the network, has been in talks with state broadband offices to scoop up funding from the Joe Biden administration’s $42.5 billion broadband expansion effort. States will start awarding grants under that program sometime in 2024.

The session was moderated by Drew Clark, editor and publisher of Broadband Breakfast. 

COS Systems CEO Mikael Philipsson, and former CEO of GlobalConnect, highlighted at Broadband Breakfast’s Digital Infrastructure Investment Summit Tuesday how Sweden’s gigabit broadband strategy drove an open access “fiber race” in the Nordic nation, from which he said the U.S. can learn.

Philipsson called for U.S. network engineers to “plan for 100 percent,” saying if municipalities start to cherry pick which homes they build to, it will result in a fraction of the population likely never being served.

When GlobalConnect was planning its wholesale fiber network, it built fiber to the smallest, most rural locations first, then invited all ISPs to provide services over the network on equal terms, he said.

The Swedish government’s broadband strategy adopted in 2016 encouraged rapid investment and innovation. The government had several initiatives and strategies to encourage private investment in broadband networks, including subsidies and grants for private investment in rural areas, the promotion of public-private partnerships, and encouraging open access networks.

Today, 60 percent of the Swedish market has adopted internet service that utilizes the open access model, with the other 40 percent choosing a vertically-integrated fiber or cable offering that still relies on a wholesale fiber backbone. Due to consumer demand, even the former incumbent, Telia, adopted the open access model in order to maintain its competitive advantage.

Lessons along the way on the open access path

But there were hard lessons learned along the way, Philipsson said, including labor shortages and permitting issues that caused buildouts to stall for 12 to 15 months at a time.

“It’s going to be more expensive and take a longer time than you think,” warned Philipsson.

Fifteen years earlier, leaders of GlobalConnect were deciding whether to pursue an intensive infrastructure rollout. In what would become a defining moment, the team decided to challenge incumbent providers who at the time owned 99 percent of the physical infrastructure in the country, launching a fiber-to-the-home wholesale network with private backing.

The company’s move kicked off a land grab across Sweden, as infrastructure providers raced to compete for a share of the wholesale fiber market.

“It was a fight on the street to get customers,” recalled Philipsson. “We rolled tractors out on the street as a marker to say ‘We will serve this part of the town.’” Within five years, GlobalConnect had addressed two million households across Sweden with a fiber offering, and built its wholesale network to pass one million homes with a 70 percent take rate.

The positive effects of adopting the wholesale model across Sweden were sweeping for service providers, infrastructure providers, and residents, alike. Service providers with big ambitions were able to launch their services nationally with no capital expenditures, he said. Competition drove providers to become more customer centric, offering differentiated pricing models and expanded offerings to separate themselves, he added.

“Partner up with your former competitors, perhaps,” said Philipsson. “Sharing infrastructure is really the end game for digital infrastructure, just like all the other infrastructures.”

“I think that when the time comes for BEAD, this platform will be a perfect fit,” Bill Hogg, the company’s CEO, said at a Broadband Breakfast Live Online event. 

That’s because consumers could still choose from multiple internet providers offering different services at different price points, all on BEAD-funded Gigapower infrastructure, Hogg pitched. The traditional ISP-owned infrastructure model would only bring service from the provider that won a state contract to expand their network, he claimed. 

“They like the idea that multiple ISPs will be able to bring choice to their constituents,” he said of state broadband officials. “They don’t have to pick a winner or a loser.”

Gigapower, a joint venture between AT&T and the investment firm BlackRock, is already slated to build a 1.5-million-location open access network. That means it will own and operate a fiber network while allowing multiple internet service providers to use that network to connect individual homes and businesses.

Spawned from the Infrastructure, Investment, and Jobs Act, the BEAD program allocates $42.5 billion to subsidize broadband infrastructure – primarily fiber – in areas that still lack adequate internet service because of geographical barriers or low population density. After submitting initial proposals by the end of the year, states will be able to start doling out this money to fund projects.

Gigapower is actively looking to add more service providers to its lineup, Hogg said. 

“We fully intend to have other ISPs on the network,” he said. “We’re having good discussions with potential future tenants.”

Benefits of open access

AT&T will be the first tenant on the open access network, part of its deal with Blackrock. The telecom is looking to reach more people as quickly as possible, said Erin Scarborough, its president of broadband and connectivity, but building out fiber is costly and expensive. Making use of a network outside the company’s existing infrastructure will make it easier to expand into new areas and was a key motivator for investing in the project.

“That’s one of the key tenets of this agreement and why we were looking to do it,” Scarborough said.

The open access model is a departure from the norm in American telecommunications. There are regional open access networks like Utah’s UTOPIA Fiber, but large ISPs have traditionally opted for the security of owning and operating their own networks. 

“When you start thinking about operating more efficiently with less capital, sharing networks has always made sense,” Hogg said. “We think that this model is going to break down the historical bias telecos have had about not controlling all the assets.”

Despite the company’s investment in the project and first-provider status, Scarborough and Hogg were emphatic that AT&T will not have a management role over the network.

“We are the network operator,” Hogg said of Gigapower. “We own the assets. We own the negotiation for the commercial terms.”

Our Broadband Breakfast Live Online events take place on Wednesday at 12 Noon ET. Watch the event on Broadband Breakfast, or REGISTER HERE to join the conversation.

Wednesday, September 13, 2023 – AT&T and BlackRock’s Gigapower Joint Venture

In December 2022, AT&T and BlackRock, through a fund managed by its Diversified Infrastructure business, jointly invested  in the Gigapower joint venture that is expected to build fiber connectivity to an initial 1.5 million customer locations beyond AT&T’s current footprint. Notably, AT&T will rely on a commercial wholesale open access platform, where multiple providers share space and compete for customers over the same fiber infrastructure. Could Gigapower alter the historical reluctance of U.S. telcos toward such networks? How will the deployment impact open access projects throughout the United States? Get the facts from this special Broadband Breakfast Live Online event.

Panelists:

• Bill Hogg, CEO of Gigapower
• Erin Scarborough, President, Broadband and Connectivity Initiatives at AT&T
• Adam Waltz, Managing Director at BlackRock Infrastructure
• Roger Entner, Founder and Lead Analyst of Recon Analytics
• Drew Clark (moderator), Editor and Publisher, Broadband Breakfast

Adam Waltz is a Managing Director in BlackRock’s Global Infrastructure Fund focused on investments in digital infrastructure opportunities across fiber networks, data centers, and wireless infrastructure. He serves as a Board Director at Gigapower, BlackRock’s joint venture with AT&T to develop a commercial wholesale open access platform on a state-of-the-art fiber network.

Bill Hogg leads Gigapower, an open access, wholesale fiber broadband company that builds and operates fiber solutions lit for fast connectivity and designed for network resiliency and reliability. Bill retired as President, AT&T Technology Operations, and was responsible for all planning, investment, engineering, construction, delivery, and assurance of AT&T’s wireless and wireline networks. Previously, Bill served as President-Technology Development, responsible for the development of AT&T’s products and services, digital experiences for customers, and systems supporting the operations across AT&T’s networks and services.

Erin Scarborough leads the team responsible for AT&T’s efforts to connect more Americans to greater possibility through fiber and wireless 5G investment initiatives, participating in government funding programs and public private partnerships. She and her team are taking a strategic, state-by-state approach working closely with state and local governments as they assess their broadband access, affordability and adoption needs. She also leads the combined broadband and mobility product management teams and has cross-functional responsibility for product profitability, pricing, customer experience, product design, multi-year roadmaps, development, and value-add services across the product portfolios.

Roger Entner advises telecom, media and technology companies on strategic and tactical business as well as public policy issues to allow them to compete better in the marketplace. Some of the challenges he helped to address are mobile market trends and business drivers and how to position themselves for growth and profitability, TMT convergence, bundling, changes in media consumption, software-defined networking, transition from MVNO to MNO, as well as providing the evidence and arguments for light touch wireless regulation and spectrum allocation for 5G. Under Roger’s leadership, Recon Analytics has launched the fastest and most agile telecom insights service based on more than 400,000 respondents across consumer mobile, home internet and business telecom customers.

Breakfast Media LLC CEO Drew Clark has led the Broadband Breakfast community since 2008. An early proponent of better broadband, better lives, he initially founded the Broadband Census crowdsourcing campaign for broadband data. As Editor and Publisher, Clark presides over the leading media company advocating for higher-capacity internet everywhere through topical, timely and intelligent coverage. Clark also served as head of the Partnership for a Connected Illinois, a state broadband initiative.

As with all Broadband Breakfast Live Online events, the FREE webcasts will take place at 12 Noon ET on Wednesday.

SUBSCRIBE to the Broadband Breakfast YouTube channel. That way, you will be notified when events go live. Watch on YouTube, Twitter and Facebook.

See a complete list of upcoming and past Broadband Breakfast Live Online events.

Our Broadband Breakfast Live Online events take place on Wednesday at 12 Noon ET. Watch the event on Broadband Breakfast, or REGISTER HERE to join the conversation in the webinar.

Wednesday, September 13, 2023 – AT&T and BlackRock’s Gigapower Joint Venture

In December 2022, AT&T and BlackRock, through a fund managed by its Diversified Infrastructure business, jointly invested  in the Gigapower joint venture that is expected to build fiber connectivity to an initial 1.5 million customer locations beyond AT&T’s current footprint. Notably, AT&T will rely on a commercial wholesale open access platform, where multiple providers share space and compete for customers over the same fiber infrastructure. Could Gigapower alter the historical reluctance of U.S. telcos toward such networks? How will the deployment impact open access projects throughout the United States? Get the facts from this special Broadband Breakfast Live Online event.

Panelists:

• Bill Hogg, CEO of Gigapower
• Erin Scarborough, President, Broadband and Connectivity Initiatives at AT&T
• Adam Waltz, Managing Director at BlackRock Infrastructure
• Roger Entner, Founder and Lead Analyst of Recon Analytics
• Drew Clark (moderator), Editor and Publisher, Broadband Breakfast

Adam Waltz is a Managing Director in BlackRock’s Global Infrastructure Fund focused on investments in digital infrastructure opportunities across fiber networks, data centers, and wireless infrastructure. He serves as a Board Director at Gigapower, BlackRock’s joint venture with AT&T to develop a commercial wholesale open access platform on a state-of-the-art fiber network.

Bill Hogg leads Gigapower, an open access, wholesale fiber broadband company that builds and operates fiber solutions lit for fast connectivity and designed for network resiliency and reliability. Bill retired as President, AT&T Technology Operations, and was responsible for all planning, investment, engineering, construction, delivery, and assurance of AT&T’s wireless and wireline networks. Previously, Bill served as President-Technology Development, responsible for the development of AT&T’s products and services, digital experiences for customers, and systems supporting the operations across AT&T’s networks and services.

Erin Scarborough leads the team responsible for AT&T’s efforts to connect more Americans to greater possibility through fiber and wireless 5G investment initiatives, participating in government funding programs and public private partnerships. She and her team are taking a strategic, state-by-state approach working closely with state and local governments as they assess their broadband access, affordability and adoption needs. She also leads the combined broadband and mobility product management teams and has cross-functional responsibility for product profitability, pricing, customer experience, product design, multi-year roadmaps, development, and value-add services across the product portfolios.

Roger Entner advises telecom, media and technology companies on strategic and tactical business as well as public policy issues to allow them to compete better in the marketplace. Some of the challenges he helped to address are mobile market trends and business drivers and how to position themselves for growth and profitability, TMT convergence, bundling, changes in media consumption, software-defined networking, transition from MVNO to MNO, as well as providing the evidence and arguments for light touch wireless regulation and spectrum allocation for 5G. Under Roger’s leadership, Recon Analytics has launched the fastest and most agile telecom insights service based on more than 400,000 respondents across consumer mobile, home internet and business telecom customers.

Breakfast Media LLC CEO Drew Clark has led the Broadband Breakfast community since 2008. An early proponent of better broadband, better lives, he initially founded the Broadband Census crowdsourcing campaign for broadband data. As Editor and Publisher, Clark presides over the leading media company advocating for higher-capacity internet everywhere through topical, timely and intelligent coverage. Clark also served as head of the Partnership for a Connected Illinois, a state broadband initiative.

As with all Broadband Breakfast Live Online events, the FREE webcasts will take place at 12 Noon ET on Wednesday.

SUBSCRIBE to the Broadband Breakfast YouTube channel. That way, you will be notified when events go live. Watch on YouTube, Twitter and Facebook.

See a complete list of upcoming and past Broadband Breakfast Live Online events.

“AEX offers network operators unparalleled scalability,” said Greg Mclaughlin, the company’s new CEO. “Throughout comprehensive managed services and tested and proven integrated [operations support system and business support system] software, AEX’s complete solution enables operators to efficiently plan, build, maximize, operator and support both greenfield and brownfield networks with remarkable speed.” 

Mclaughlin said in a press conference that the software will allow providers to automate their systems and hand off the hard work to AEX so they can focus on building out their networks with maximum efficiency. 

Jim Sanders, vice president of sales and marketing, said that the company seeks to make it as easy as possible for internet service providers to get internet out to unserved and underserved communities as fast as possible by providing solutions to minimize upfront heavy lifting. 

AEX helps open access fiber network operators, which lease fiber infrastructure to deliver services to the end user. The software services offered by AEX include a network operations center, equipment supply, installation and commissioning, technical support, virtual internet service provider and service desk. Additionally, AEX directly supports operator customers, acting as the single point for all network queries and technical issues. 

John McLauchlin, vice president of implementation at AEX, said at the press conference that the company’s “support structure provides efficient escalation, granting appropriate access enabling our trained professionals to deliver a superior customer experience.” 

Mclauchlin added that the company’s success in helping to build open access networks in South Africa has given AEX the expertise to do the same in the United States. AEX says that its software platform talks to all different entities on the network to centralize communication and simplify the process of operating a network.

Municipalities currently do not have the expertise or capacity to operate a network which is where internet service providers come in and form a partnership, Perlitz said. However, in the future, artificial intelligence and machine learning will simplify the operation and the system will become a utility and managed by a municipality, he said.  

Perlitz predicted that migrating into a full utility format may take decades. He urged municipalities to invest in networks now in preparation for the “long game.” 

The cost of capital in building infrastructure is a lot cheaper for municipalities than for private, for-profit service providers, Perlitz said. Municipalities do not need high margins to pay off investors and aim to operate a zero-sum game with no profits.  

Nonprofits are good recipients of grants, he added, claiming that the government should consider how they can motivate a municipality to enter into the internet.  

Many experts claim that a utility-based broadband model is the only solution to bridge the digital divide, claiming that utilities understand how to operate large infrastructure projects that connect hundreds of homes and have core internal communication capabilities.  

In an open access network, broadband infrastructure is owned by one entity, which can be a network operator or a municipality or other form of cooperative governance. The network operator leases the infrastructure to internet service providers. 

Gabe Gomez, vice president of customer experience at ISP Syringa networks, said that Syringa chose to operate on an open access network due to the network’s policy that limited the number of ISPs and maintained a strong vetting process for those providers. 

The potential take rate in a network is higher when the network operator limits the number of ISPs on the network, said Gomez. Having too many providers makes it difficult to get the market share and investment an ISP needs to provide a good experience to the customer, he continued.  

“If you have too many ISPs, some will lose,” he added, and customers will end up paying for it with bad experiences and poor customer support.  

Although an open access model is considered the “gold standard” by some network operators, including Utah-based UTOPIA Fiber, some commentors are concerned that the model will reduce ISPs to price-war strategies to eliminate competition and retain market share.

According to Gomez, limiting providers is a sustainable solution to price gauging concerns. 

Chief Marketing Officer at UTOPIA Fiber Kim McKinley told Broadband Breakfast that its network, however, does not have price gouging concerns, stating that the company views both provider and end user as its customers and does what it can to protect each. 

UTOPIA Fiber hosts 18 ISPs on its residential network competing for customers. Although hosting many providers on a single network does not work for small communities, the model is successful in UTOPIA’s cities and it supports small local ISPs while providing variety to the end users, said McKinley. 

Furthermore, UTOPIA’s model gives small and local providers a shot to compete with the larger companies they otherwise would not have been able to compete with, she added.  

George Templeman, president of network access partnerships at open access network operator SiFi Networks, said that the open access model provides customers with access for a diverse choice in ISPs that provide high-quality service.  

The model is cost effective, environmentally friendly, and provides customers with the best experience, Templeman said, touting one-time builds and sustainable fiber infrastructure.  

The open access fiber infrastructure will be owned by the city but operated by UTOPIA Fiber, which will then lease the fiber to internet service providers. 

City council members expressed their resounding support for the program. We believe that the estimates of take rates are conservative and reasonable when compared to like communities, said City Manager Gary Hill, pointing to neighboring town Centerville that has 49 percent take rate on its city-owned network. 

Bountiful will issue $43 million in bonds to fund the program, announced the city. The debt service for the bond will be paid for using system revenues with any excess revenue invested into affordability assistance, city council members said.  

The initial contract term is 10 years with buildout expected to take 2-3 years. The city anticipates that it will make profit on the investment within four to five years of operation. 

In 2022, at the request of residents, the city issued a request for proposals that were released to potential fiber providers to build and operate a city-owned network. In January, Bountiful officials began contract negotiations with UTOPIA. 

“The purpose of the City’s involvement with fiber is to provide a competitive marketplace for internet service providers through an open access network,” read the city’s statement.  

The announcement comes months after West Haven, Utah announced its contract with UTOPIA Fiber for a city-wide network. 

In December, AT&T and BlackRock announced the formation of their joint venture, Gigapower LLC, to operate and deploy a fiber network to 1.5 million customers using a commercial open access platform.  

The deal between the companies closed Thursday. According to the press release, the new company’s goal is to “create the United States’ largest commercial wholesale open access fiber network to bring high-speed connectivity to more Americans.” 

“We believe fiber connectivity changes everything. That’s why we’re already one of the biggest investors in fiber in the United States,” said John Stankey, CEO of AT&T in a statement.  

“The demand for high-speed connectivity is unprecedented, and through this innovative partnership with BlackRock, one of the world’s foremost investors in infrastructure, we’re able to connect even more people and businesses, accelerating our efforts to help close the digital divide,” he said. 

Gigapower will enable AT&T to expand its fiber reach beyond its traditional areas and spread across the country, read the press release. BlackRock brings significant expertise and capital to support the buildout. 

The company expects to expand into Las Vegas, Nevada and areas of Arizona as well as Northeastern Pennsylvania and parts of Alabama and Florida that are currently outside of AT&T’s service areas. 

Christopher Sambar, executive vice president of AT&T, said in a Connect (X) event Wednesday that the company has already invested millions of dollars to build the most expansive fiber network in America.  

Between 2018 and 2022, AT&T invested $120 billion into the US economy via capital expenditures, he said, making the company one of the largest capital investors in America. 

Fiber is the backbone of wireless and 5G technology, he said. It is essential that the industry builds the foundation of fiber to support 5G and enable further innovations in the technology. 

According to Sambar, well over 170 million customers are being serviced with high-speed 5G networks and close to 300 million are serviced with speeds close to 5G.  

“If we’re going to solve the digital divide, we need to use the utility model,” stated Josh Leonard from engineering company Burns and McDonalds. 

A utility model, sometimes dubbed municipal broadband, is broadband infrastructure owned by public entities. Service is provided to residents by service providers that lease publicly owned networks in an open-access system.  

Following the COVID-19 pandemic, most state and city officials understand that broadband needs to be the fourth utility – after water, gas and electricity – said Leonard, but they do not treat it as such. 

Utilities understand how to operate large infrastructure projects that connect hundreds and thousands of homes, said Sean Stokes, partner at Keller and Heckman law firm. Utilities already have a core internal communication capability and already have essential infrastructure in place such as utility poles. 

Although utilities rarely want to be an internet service provider, Stokes continued, they are uniquely positioned to effectively run the network and lease it to providers. Open access enables partnerships with entities that want to be investors but don’t want to operate or be a provider, said Ashley Poling of fiber network software company COS Systems. 

Building single-use fiber, as many ISPs do when connecting communities, harms communities by requiring multiple digs in the future. The goal is to build capacity for all current and futures once, said Franciso Arbide of NextEra Infrastructure Solutions 

Does so allows more flexibility to add providers, eliminates issues if providers have poor service, and put pressure on non-performing providers, said Arbide. 

Entities looking to invest in large-scale infrastructure investments are not making realistic assessments of the actual cost of deploying infrastructure, cost and time to access utility poles, increased cost and delay in supply chains, and labor shortages, said Stokes. The best solution is to utilize the assets that utilities already have in their toolbelt, he said. 

Experience is the number-one priority when looking to build a broadband project, agreed Seema Patel of Chapman and Cutler. “Having experience in the industry is really going to be critical,” she said. 

“This infrastructure-based utility model is what succeeds,” said Poling. “The states that understand this will really achieve almost 100 percent digital equity. Others will not.”

In an oopen access network, broadband infrastructure is owned one entity, which can be a network operator or a municipality or other form of cooperative governance. The network operator leases the infrastructure to internet service providers. In essence, an open access model brings competition to monopolizing incumbents to the benefit of the user, said Ben Seo from marketing firm Harrison Edwards.

An open access network empowers communities because it gives consumers the power they need to hold providers responsible, continued Seo. Because the model enables direct competition, consumers can use their dollars to demand certain services from their providers.

Although the model is touted as the “gold standard” by UTOPIA Fiber and other network operators, some commentors are concerned that the model will reduce ISPs to price-war strategies to eliminate competition and retain market share.

Price gouging “is a concern” for UTOPIA, said Timmerman. “The providers are stakeholders for us, if the providers are not successful, we have failed,” he said. The company has taken measures to ensure the long-term scalability of its providers. The ISPs on UTOPIA’s network are limited to one price change a month.

According to Timmerman, the rules have resulted in providers finding other ways beyond price to differentiate themselves and their services to consumers. In fact, the most expensive provider on its network is also the fastest growing because it has positioned itself in the public mind as reliable and trustworthy.

We need all types of providers on the network to meet the needs of all the niches of the market, he said. There are providers that focus on connecting multi-dwelling units, those that target government buildings, those that connect school systems, and others that have specialties to fit the needs of the market.

“The network operator does have the responsibility to get involved in [pricing] to protect the ISPs and assure them that they can sustain their business long-term,” agreed Greg Wilson, founder of South African open access model AEX, Automation Exchange

Open access invites innovation in the customer experience, added Seo. Instead of driving down prices unreasonably, it incentivizes providers to find ways to improve the customer experience, enhance lives, and listen to the needs of the consumer. As a result, an open access model sells the product better, he said.

Furthermore, small, local providers are drawn to open access because it alleviates them of the necessity of investing in high-cost infrastructure. In that way, they can focus on selling reliable service to the consumer, said Timmerman.

An open-access model, sometimes dubbed the “wholesale model,” is characterized by two separate entities owning and operating the infrastructure. It allows several different service providers to compete on the same infrastructure and seeks to lower costs for the end user. 

The “pre-conference” event was organized was organized by the Coalition for Local Internet Choice, the American Association of Public Broadband and Broadband Breakfast.

Cities seeking to capitalize on federal funding and improve its broadband connection hope to mitigate partnership risks but also must consider the feasibility of owning broadband infrastructure, said Sean Gonsalves, senior researcher for the Institute for Local Self-Reliance.  

Communities are clamoring for a workable model and in a private-sector-led effort, while there is no one-size-fits-all solution, there is a strong desire that the community has considerable say in important issues, Gonsalves continued. 

As such, many states are encouraging the implementation of PPP’s rather than municipal builds to balance the municipality’s capacity of infrastructure control and broadband’s promised return on investment, said Gonsalves. 

An open-access model also addresses the question of whether governments should be involved in the kind of service provided by internet service providers, added Mitchell Shook, CEO of ISP Advanced Stream Broadband. Service providers can enter homes and provide direct service whereas governments may not have the capability to maintain such service, he said.  

Broadband continues to increase in importance for city governments, said Roger Timmerman, CEO of UTOPIA Fiber. UTOPIA is built on an open-access model in which it owns an expansive fiber network which is then leased to ISPs that take service to the end user.  

From a city perspective, the city itself is the most critical anchor for a fiber network as the network supports critical public safety and service systems, continued Timmerman. These systems include wildfire and vandalism surveillance which are already being deployed in some cities, according to the fiber company. 

“If a city has fiber infrastructure, they are in position to support smart city applications on demand,” Timmerman said, claiming that in a few years, these applications may be nearly as important as residential uses.  

Not all industry leaders agree with this assessment, however. In a Broadband Breakfast Live Online event in December of 2021, Jim Baller, partner at law firm Keller and Heckman, rose concerns that such a model forces providers to engage in a price war that will ultimately limit – and potentially erase – profitability for all players involved. Baller is also president of CLIC.

In November 2019, Lewis County PUD received a $50,000 grant from the Community Economic Revitalization Board to study the county’s broadband shortcomings and determine whether taking direct action to address them made sense. In early 2020, the PUD formed the Lewis County Broadband Action Team to further study community needs.

Those inquiries found what most U.S. communities know too well: concentrated monopolization had left county residents overpaying for substandard, expensive, and spotty broadband access unsuitable for modern living.

In response, the Lewis County PUD announced in 2021 it would be building an 134-mile-long fiber backbone and open access fiber network for around $104 million. Around $23.5 million of that total will be paid for by a recently awarded grant by the Washington State Department of Commerce, itself made possible by the American Rescue Plan Act.

In December of 2021, Lewis County PUD public affairs manager Willie Painter was a guest on our Community Broadband Bits podcast in which he discussed the PUD’s vision of deploying fiber across the county’s 2,450 square miles, which is home to about 75,000 Washingtonians, or about 30,000 households. Painter noted then how the PUD’s “shovel ready designs and estimates” is what “empowered our utility to be very competitive in going after state and federal grant dollars to help fund these construction deployments.”

The latest development to have emerged since we last reported on Lewis County PUD, is who the PUD selected as a partner to build the network. The network will be built as part of a 25-year public-private partnership with ToledoTel. While ToledoTel will install, supply and maintain a new fiber optic network connecting more than 2,300 homes and businesses in the Winlock area, Lewis County will ultimately own the final build.

ToledoTel is currently in the engineering and design phase of the project, and has stated it will provide an additional $2.35 million in matching funds for the project, which is slated to be finished before 2026.

Details of the arrangement were finalized in January, and county leaders state that ToledoTel will have exclusive access to the infrastructure for up to three years. After that, ToledoTel will be required to open the network to competitors at a wholesale rate, boosting competition and driving down costs in a residential broadband market largely dominated by Comcast.

Photo of Lewis County PUD building courtesy of Wikimedia Commons.

“There’s the convenience, there’s business purposes; all those are really vital and becoming more and more a part of everyday life, and we want to provide those services to everyone in Lewis County that we can,” Lewis County Manager Erik Martin told The Chronicle. “This project is really the beginning, in terms of getting service out to folks, and we want to focus on getting broadband out to all rural areas and all residents of Lewis County.”

A 2021 survey by the WA Department of Commerce found that 64 percent of state households reported download speeds slower than the base FCC definition of broadband, currently a paltry 25 megabit per second (Mbps) downstream, 3 Mbps upstream. The state is currently considering raising the base definition of broadband to 100 Mbps downstream, 20 Mbps upstream.

A local survey by Lewis County PUD found that more than 77 percent of survey respondents had broadband speeds well below the acceptable federal definition of broadband, despite nearly 98 percent of county survey participants considering broadband access an essential utility.

Lewis County is one of many PUDs in Washington State taking full advantage of a flood of new grants — and recently-eliminated Washington State restrictions on community broadband — to belatedly expand access to affordable fiber across the state.

This article by Karl Bode originally appeared on the Institute for Local Self Reliance’s Community Broadband Networks project on March 13, 2023, and is reprinted with permission.

Video from Panel 3 at Digital Infrastructure Investment: Kim McKinley, Chief Marketing Officer, UTOPIA Fiber, Jeff Christensen, President & CEO, EntryPoint Networks, Jane Coffin, Chief Community Officer, Connect Humanity, Robert Wack, former Westminster Common Council President and leader of the Open Access Citywide Fiber Network Initiative, and moderated by Christopher Mitchell, Director, Community Broadband Networks, Institute for Local Self-Reliance

For a free article summarizing the event, see Communities Need Governance Seat on Broadband Builds, Conference Hears: Communities need to be involved in decision-making when it comes to broadband builds, Broadband Breakfast, November 17, 2022

“AT&T, Frontier, these companies have a history of failing to meet community needs,” said Mitchell. “If I had a choice between open broadband fixed wireless and fiber from AT&T, I’d be really, you know, checking it out.”

“[AT&T] is a company that will sell your data at the first opportunity, it’s a company that will raise your bill every chance it gets,” Mitchell added.

ILSR’s director said that in communities in which local ownership isn’t possible, such as in a town with a deeply corrupt government, there still exist contractual provisions that can maximize local control.

A right of first refusal, for instance, gives communities the option to purchase their local network if the original provider chooses to sell. Mitchell also suggested communities write performance-based contracts that institute penalties for network partners who fail to meet clearly outlined performance benchmarks.

Conversation entered realm of open access discussion

The wide-ranging conversation also dealt with the issues of open access networks, and whether cities are well-suited to play a role in developing them.

 “The cities are the custodians of their rights of way – they need to be, they must be,” said Drew Clark, editor and publisher of Broadband Breakfast. Because of the cities inherent role as custodians of their rights of way, Clark said that open-access networks provide cities with the opportunity to own the infrastructure portion of their broadband networks, while still offering private companies the ability to serve as network operators or application service providers.

Mitchell agreed that open access networks can be critical to broadband innovation. “We need to have millions – ideally tens of million – of Americans in thriving areas that have open access to kind of see what we can do with networks,” he said.

“Maybe a lot of those ideas won’t work out, but I think we don’t want to foreclose that path.”

In addition to overseeing digital infrastructure projects, communities can promote digital equity by utilizing established, trusted community-based institutions – such as food pantries or faith groups – to boost digital literacy and distribute devices, Mitchell said.

Mitchell added that these efforts must be ongoing: “This is more about building connections now.”

Broadband.Money is a sponsor of Broadband Breakfast.

Because every state is poised to receive a minimum of $100 million to expand broadband infrastructure under the bipartisan Infrastructure Investment and Jobs Act, officials at Yellowstone Fiber believe they are well-suited to obtain funding to connect homes, businesses, farms, and ranches to high-speed fiber internet in the sections of the Montana’s Gallatin County north of Bozeman.

Although Yellowstone Fiber is just going live with its first customers in September – and began offering pre-sales in late July – the new fiber entity believes that the availability of funding through the Broadband Equity, Access and Deployment program of IIJA offers a unique opportunity.

Photo of Greg Metzger in July 2022 from Yellowstone Fiber

As with all states, Montana will receive a minimum of $100 million to expand high-speed broadband infrastructure to the nearly one-third of state residents who currently lack access.

Speaking about the impending launch of services on Yellowstone Fiber, CEO Greg Metzger said, “This is an important milestone for Yellowstone Fiber and we’re enormously excited to announce we’ll have the network live in a matter of weeks.”

“For decades, people in rural Montana have been limited by slow and expensive internet service and empty promises by cable providers. Today’s announcement signals we’re serious about connecting rural Gallatin County to high-speed fiber and the limitless possibilities that it brings,” he said.

Yellowstone Fiber is building an open access network, which means that Yellowstone builds, owns, and operates the fiber infrastructure, then leases space on its high-speed fiber to service providers, including Blackfoot Communications, Skynet Communications, Global Net, TCT and XMission.

In an interview, Metzger touted the role that open access networks play in enabling free market competition, including better prices, service, and reliability.

Metzger, an entrepreneur who previously manufactured plastic deposit bags for banks, sold that business and bought a furniture company in Montana.

Although he said he would rather be playing golf, when he stumbled across a new funding mechanism, he decided to create a non-profit entity designed to serve his community with fiber optic network services.

Yellowstone Fiber was formerly Bozeman Fiber, and was created in 2015 as an economic development initiative to address the lack of true high-speed broadband in Gallatin County, Montana.

A group was formed including the City of Bozeman, Gallatin County, the Bozeman School District and business leaders and funded by eight banks with a Community Reinvestment Act-designated loan.

This $4,000,000 was used to create a fiber ring connecting anchor tenants including the city, county and the school district, and also servicing the Cannery district and downtown Bozeman.

Anchor operations began in the fall of 2016, and commercial operations in February 2017. In 2020, the network formed an operational partnership with Utah-based UTOPIA Fiber to bring fiber-to-the-home services to every address in Gallatin County.

“Right now, we are working with [Golden State Connect Authority] to identify various pilot areas for the project and have started preliminary engineering work to determine the initial project area,” Roger Timmerman said at the Broadband Communities Summit 2022.

During the press conference, Timmerman also pointed to UTOPIA’s expansion into Santa Clara, Utah, and its completion of its original 11 Utah cities by the end of 2022.

Timmerman was joined by partners Barbara Hayes of the Golden State Authority and Yellowstone Fiber CEO Greg Metzger as they delivered remarks on their joint ventures. The partnership will create the largest publicly owned fiber network in the US, and as it stands now, would span 38 of California’s 58 counties.

“California may be the world’s fifth-largest economy, but our state’s connectivity is decades behind,” Hayes said. “Investing in open access fiber will be transformative for California.”

Both Metzger and Hayes emphasized that their decision to partner with UTOPIA was largely informed by the company’s track record.

“We needed to have a partner who was successful and had done it before,” Metzger said. “For Montana, this is going to be a breath of fresh air.”

Yellowstone Fiber, formerly known as Bozeman Fiber, is a not-for-profit that will replicate UTOPIA’s open access model to provide broadband to the greater Bozeman region; it will own and operate the fiber but will rely on UTOPIA for assistance on the backend.

UTOPIA’s model of open access has long been a point of interest in the telecom industry. While some claim it will be a solution to the digital divide, other assert that it has merely created a “race to the bottom” where internet service providers are constantly pushed to undercut their completion. Timmerman and others have pushed back against the “race to the bottom” assertion, claiming that providers can find ways other than price to distinguish themselves from their competition, such as superior customer service. Additionally, they point to their recent track record as evidence that critics’ concerns that they can maintain a positive cash flow are unfounded.

Though UTOPIA, a sponsor of Broadband Breakfast, now has positive revenue and has served as a model for open access projects around the country, critics still point toward its more than $300 million in outstanding debt it accrued in its early days, before Timmerman was at the helm.

Elizabeth Walker, Brownsville assistant city manager, and Andres Carvallo, CEO and founder of CMG Consulting LLC, recommended that the council authorize two respondents, HMI Utilities with Lit Communities, for a combined proposal to maximize technical and financial capacity.

Brownsville, Texas, is a city of more than 182,000 people and is one of the cities with some have called the worst broadband city in the country.  The National Digital Inclusion Alliance in 2018 listed Brownsville and a neighboring community as one of the top two worst connected cities in the country with a population of more than 65,000. For Brownsville, 47.1% of households do not have broadband of any type, NDIA found

Lit Communities, a fiber-builder that partners with municipal, county and other government entities, will operate the network, with HMI Utilities as the prime contractor. Lit Communities subsidiary BTX Fiber will be the last-mile provider on the network. However, the project will be an open network with multiple internet service providers.

Standard service on the network will be at least 100 Megabits per second (Mbps) symmetrical.

The research for this project began nearly a year ago in April 2021 when Walker and Carvallo looked at different business models, like public policy only, public services, open access, infrastructure, municipal retail (business only and residential). They looked at these models in similar projects in Texas and across the country, including in places like Knoxville and Santa Cruz County. Eventually, they decided on an open access model.

Specifics of the Brownsville network

All citizens will have access to this broadband. “It is eight middle-mile fiber rings to address the full geography of Brownsville,” said Walker.

The city will own 100% of the middle mile and will be able to license it out in private-public partnerships to create revenue, as well as revenue from the last mile connectivity. To ensure affordability, there will be a cap on what providers can charge.

Affordability “is very important,” said Walker. “The crux of the consideration is just to not deliver access, but to make it affordable.”

This infrastructure will have a life expectancy of 50 to 100 years, said Walker.

Walker said that “evidence suggests that broadband services have a net positive economic and social impact to communities by enhancing key functions such as economic competitiveness, workforce development, training, educational capabilities, municipal operations, and smart city developments.”

This is part of the private-public partnership model of Lit Communities. The company recently partnered with Ohio’s Lorain-Medina Rural Electric Cooperative to install fiber on existing utility poles. In these projects, the municipality in question provides the capital necessary to build a middle mile or backbone network.

“We are not stopping with these initial groups of towns that we are looking at and working into right now,” said Rene Gonzalez, Lit Communities’ chief strategy officer. “It is just the beginning.”

The network, operated in partnership with large Utah-based open-access network UTOPIA Fiber (a sponsor of Broadband Breakfast), will be Montana’s first high-speed all-fiber internet network as well as its first open-access fiber-to-the-home network.

The start of construction for the privately-funded network comes only six months after initial announcement of the project.

Not only will the network connect every address in Bozeman, but it will also extend “deep into Gallatin County,” according to the developer.

Businesses are expected to receive speeds of up to 100 Gigabits per second and residential properties will experience up to 10 Gbps to create what the city of Bozeman has called “the first true gigabit city in the state of Montana.” Pricing plans are expected to be announced this spring.

The first six internet service providers to provide services on the network will be Blackfoot, Global Net, Hoplite Industries, Skynet, Tri-County Telephone Associates, and XMission.

Montana is one of the least-connected states in the U.S. About a third of residents in Gallatin County, in which Bozeman is a city, lacks internet access.

In an “Ask Me Anything!” interview on Broadband.Money on Friday, Ben Bawtree-Jobson said his company plans to put $2 billion in open-access fiber networks in 30 cities across the country by the end of 2022. The open access model allows other providers of retail broadband internet to use infrastructure to deliver last-mile services to homes.

Bawtree-Jobson said that this model is in contrast to the Google Fiber model, which puts infrastructure where there’s demand. Bawtree-Jobson said his company wants to put fiber to every home, regardless of demand. The company recently entered into a $500-million joint venture with Dutch pension fund manager APG Group NV for open-access fiber-to-the-home delivery.

But despite opening the infrastructure to other providers, Bawtree-Jobson said SiFi wants to ensure that those providers are delivering quality service. In this case, SiFi ensures that that companies that will ride on its infrastructure have a track record of meeting customer service expectations.

Bawtree-Jobson also said that when SiFi looks for cities to adopt, it likes to make sure they have “a relatively limited existing fiber footprint, in terms of fiber to the home” and those areas are densely populated enough so as to avoid having to string lots of fiber between individual households.

To watch the “Ask Me Anything!”, visit Broadband.Money, and join the community!

The expansion into Washington County’s Santa Clara marks UTOPIA Fiber’s first expansion into southern Utah.

“We’re really excited to continue our momentum in Utah County and to venture into southern Utah where Santa Clara will become the first all-fiber city in Washington County,” said Roger Timmerman, executive director of UTOPIA Fiber.

This move marks UTOPIA’s 18th and 19th city expansions and comes with a $12 million price tag. Just last month, UTOPIA completed its network in Payson City, Utah. The telecom provides business services in 50 cities.

In all its serviced cities, UTOPIA offers residential speeds of up to 10 Gigabits per second and business speeds of up to 100 Gigabits per second – both the fastest respective speeds offered in the U.S. In total, the network provides fiber availability to more than 130,000 businesses and residences across its 50 serviced communities.

In its press release, UTOPIA promoted its expansion by citing research showing that residential and commercial property values increase when they are served by a fiber network. It added that its open access model, which allows infrastructure sharing with other providers, “protects a net-neutral internet without throttling, paid prioritization, or other provider interference.”

UTOPIA Fiber is a Broadband Breakfast Sponsor.

During the Broadband Breakfast Live Online event on Wednesday, UTOPIA Fiber Executive Director and CEO Roger Timmerman and Jim Baller, partner at law firm Keller and Heckman LLP partner, debated the merits of the model that allows service providers to use the same infrastructure.

Timmerman, whose UTOPIA Fiber operates an open access model in Utah and southern Idaho, said his company has seen success with open access fiber infrastructure being a sustainable and scalable model to meet whatever demands future technology may place on consumers and businesses.

Sixteen internet service providers use infrastructure built and leased by UTOPIA, a sponsor of Broadband Breakfast, to offer residential areas up to 10 Gigabits per second symmetrical speeds.

But Baller said he is concerned that shared infrastructure will just force providers to engage in a price war that will lead to a race to the bottom. He painted a picture of an open access model whereby wholesalers who lease their infrastructure to internet service providers find themselves in a kind of purgatory where no one is making any money – the wholesaler is unable to compel ISPs to raise their prices, and the ISPs feel they can only compete by undercutting their competition. He described the situation as “open access run amok.

“I would love to see open access work, I just urge caution, because you need to do hard analysis in a particular market,” said Baller. “Open access may not be something that is possible up front, but it can be over time.

“You have to look at the numbers very carefully and assess what the circumstances are and make your decision based on what is in front of you,” he said. “There is no one size shoe that fits all in these circumstances.”

In response to the criticism that open access will drive prices into the ground, Timmerman said that the largest provider in UTOPIA’s network is also the most expensive. “It has not been a race to the bottom, it has actually been the opposite,” he said.

Timmerman added successful providers are ones “that can differentiate themselves on quality, reputation, consumer privacy,” and added that the nature of the model allows them to do so at a low barrier to entry.

Timmerman described how UTOPIA has been able to “raise the bar” on their standards for accepting ISPs to partner with, and how they have had to “beat [companies] off with a stick,” due to increased interest in working with UTOPIA.

“We want well established, successful companies because we have a lot on the hook – I cannot afford to put [these] assets at risk with some fly-by-night company. We work hand in hand with providers on quality and reputation to make sure that we both win and make sure that cities and participants win.”

For his part, Timmerman conceded that there is no “one size fits all model,” but argued that most communities’ needs can be satisfied through the framework of an open access build.

“We have had a lot of conversations with communities; what [communities] have to bring to the table and what their needs are, and how we might fill all those roles and deliver a successful system.

“The more a city wants and dictates into a project, the more skin in the game they may need to have,” Timmerman added.

Our Broadband Breakfast Live Online events take place on Wednesday at 12 Noon ET. You can watch the December 15, 2021, event on this page. You can also PARTICIPATE in the current Broadband Breakfast Live Online event. REGISTER HERE.

Wednesday, December 15, 2021, 12 Noon ET — How Public Private Partnerships Represent an Opportunity for Broadband Deployment

In the past two years, public and private entities have greatly increased their collaboration to expand broadband access for Americans. In the wake of the coronavirus pandemic, the telecom industry has been forced to find innovative solutions to connect households to essential online services. In this Broadband Breakfast Live Online event, we will explore the factors driving public-private partnerships in telecom and look at where such partnerships can take us next. Various economic and business forces underlie these partnerships. We’ll also discuss the urgent need for these partnerships in the fight to connect the country.

Panelists for this Broadband Breakfast Live Online session:

• Jim Baller, Partner, Keller & Heckman
• Roger Timmerman, CEO, UTOPIA Fiber
• Dwight ‘Doc’ Wininger, Director of External Relations, Allo Fiber
• Drew Clark (moderator), Editor and Publisher, Broadband Breakfast

Panelist resources:

• Broadband Partnerships, by Jim Baller et al. for the Journal of Local Government Law
• Public Infrastructure/Private Service, by Jim Baller et al. for the Benton Institute for Broadband & Society
• The Era of the Broadband Public-Private Partnership, by Joanne Hovis, Ryland Sherman and Marc Schulhof for the Benton Institute for Broadband & Society
• UTOPIA Fiber: A Model Open-Access Network, by Drew Clark, for Broadband Communities

Jim Baller is a partner at Keller & Heckman. He was founder of the US Broadband Coalition, a diverse group that fostered a broad national consensus on the need for a national broadband strategy and recommended the framework that was subsequently reflected in the Federal Communications Commission’s National Broadband Plan. A consultant to Google’s Fiber for Communities project, he is also the co-founder and president of the Coalition for Local Internet Choice, an alliance that works to prevent or remove barriers to the ability of local governments to make the critical broadband infrastructure decisions that affect their communities.

Roger Timmerman has been serving as UTOPIA Fiber’s Executive Director since 2016 and has been a technology management professional in telecommunications and information technology for over 15 years. Roger has been designing and building networks throughout his career in various roles including Vice President of Engineering for Vivint Wireless, CTO for UTOPIA Fiber, Network Engineer for iProvo, and Network Product Manager for Brigham Young University. Roger earned his Bachelor of Science and Master of Science degrees in Information Technology from Brigham Young University.

Dwight ‘Doc’ Wininger (pronounced WINE-ing-grr) has worked on telecommunications policy issues since the 1980s, first as Executive Director of the Nebraska Public Service Commission and then for a variety of private sector providers and consulting firms. He has worked on fiber optic deployments in multiple states and has been a featured speaker at various conferences on rural broadband deployment. In his current position, Wininger is responsible for local, state and federal government relations for ALLO Communications and is also heading up market development for the company’s expansion into the State of Arizona.

Drew Clark is the Editor and Publisher of BroadbandBreakfast.com and a nationally-respected telecommunications attorney. Drew brings experts and practitioners together to advance the benefits provided by broadband. Under the American Recovery and Reinvestment Act of 2009, he served as head of a State Broadband Initiative, the Partnership for a Connected Illinois. He is also the President of the Rural Telecommunications Congress.

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All 20,000 residents and businesses in Payson City, Utah, have access to UTOPIA’s all fiber, open-access model, according to UTOPIA Fiber. Payson is the eighth of the original group of 11 cities to finalize its broadband infrastructure deployments.

“The original cities were visionaries before their time,” said UTOPIA Fiber Chief Marketing Officer Kimberly McKinley. “We need to give a lot of credit to Payson. Back in 2002, 2004, when UTOPIA was getting off the ground, they saw the benefit of our model.”

“They saw the vision and where the future was headed almost 20 years ago.”

Today, UTOPIA Fiber is deploying broadband infrastructure in 17 cities across Utah and southern Idaho. UTOPIA Fiber Executive Director Roger Timmerman said that the three remaining original cities will have their projects completed by the end of 2022.

UTOPIA’s model is entirely funded through subscriber revenue, at no cost to taxpayers. Based on UTOPIA’s recent surveys, the subscribers in question view the service as a worthy investment.

Annual customer feedback survey

Also, on Oct. 27, UTOPIA Fiber released the results of their annual customer feedback survey. Among other statistics, UTOPIA Fiber reported that the number of customers working from home had increased by more than 230 percent since the outset of the COVID-19 pandemic.

Additionally, while legislators around the country squabble over how to define broadband – whether it ought to be 100 Megabits per second (Mbps) download and 20 Mbps upload, or 100 Mbps symmetrical, nearly half of UTOPIA’s customers purchased speeds over 1 Gigabits per second, which is 10 times faster than 100 Mbps.

Customers need faster speeds to address the myriad services that simply did not exist in the past, many believe. For example, 68 percent of customers are subscribed to a streaming service that did not exist three years ago, and the use of home security connected to the internet rose by 71 percent since 2018.

And 83 percent of consumers stated that they were glad they had invested in UTOPIA, 76 percent stated it had improved their quality of life, and 75 percent said their community is better because of UTOPIA.

In addition to high levels of customer satisfaction, UTOPIA also found that consumers were strongly in favor of net neutrality policies, with 92 percent of respondents indicating as much.

“A few years back we saw an influx of customers that came over to the UTOPIA system because that our providers are net neutral,” said McKinley. “I think that that speaks to people who want more privacy and control over their user experience. I think that is what we’re seeing at UTOPIA Fiber.”

Despite being generally favorable toward the practice up through the Obama Administration, net neutrality was struck down in the U.S. in 2017 by the Trump Administration’s FCC led by Ajit Pai. Though conservatives have historically portrayed net neutrality as an example of government overreach, McKinley argues that Utah is an example of why this issue should not be a partisan one.

“[This data] shows that people do not want to be beholden to big telcos who have control of their entire user experience. I think our survey proves more than anything that this is a bipartisan topic, and this is not a blue versus red discussion,” she said. “[Consumers] just want better.”

UTOPIA Fiber is a sponsor of Broadband Breakfast.

That may be changing, however, as Bristol (pop. 60,000) inches closer to becoming the first city in Connecticut to transform itself into a fountain of community-owned connectivity as city officials consider whether to use its federal American Rescue Plan Act (ARPA) funds to build a citywide open access fiber network. With $28 million in ARPA funds at its disposal, city officials have been in a months-long process of deciding how much, if any, of that money should be spent building fiber optic infrastructure.

The city’s chief technology staff has been working with a consultant to draft design recommendations for the network, which were anticipated to be presented to both City Council and the Financial Board in August or September.

“That plan has been completed but has not been presented to City officials as of yet,” City Chief Information Officer Scott Smith told ILSR in an email. “The consultants would like to present their plan in person to City officials and so we thought it might be more prudent to have them present it at an upcoming meeting of the Mayor’s ARPA Task Force. We are hoping that we can use some of the ARPA funds to fund a portion of this broadband buildout, especially in the areas of the City where we have a significant digital divide.”

Building this infrastructure would increase competition and address local concerns about the lack of reliable, affordable, high-speed internet access.

“With the covid pandemic, it catapulted it to the top (of concerns),” Smith told the Bristol Press. “We have a digital divide issue in Bristol that is quite large.”

Currently, there are no fiber options available in Bristol, with Comcast, Frontier, Viasat, and HughesNet offering only cable, DSL, and satellite. And while, BroadbandNow reports that Comcast’s highest service tier offers gig speed connectivity in the region, we know that privately-owned infrastructure does not mean universal access. It’s not accessible if you can’t afford it.

The city has been surveying residents about their interest in having the city facilitate more options for internet access, with more than 500 respondents as of August.

In Bristol’s 2022 Capital Budget Summary it says:

“The City continues to pursue the feasibility of a potential city-wide network and has appropriated $250,000 of ARPA funds to evaluate an open access fiber broadband network for internet service providers to use to provide services to businesses and households of Bristol. The 2021 appropriation of $100,000 is being used to provide an overall plan and feasibility study to see if this network is sustainable and if the community wants it.”

“The city built its own fiber network to connect all its buildings and the schools,” the City Chief Information Officer Scott Smith told the Bristol Press. “We already run one connected to the poles. We’re looking to try and use that as much as we can and expand that fiber out into the neighborhoods around the schools and around the city buildings with the ultimate goal of reaching the whole town.”

While the timeline is unclear, the fact that the city is seriously considering how to create a more competitive broadband market is unmistakable.

“We’re not going to become an ISP. We’d ask Internet Service Providers to compete over the infrastructure. The competition would bring down prices,” then-Mayor Ellen Zoppo-Sassu told the Hartford Courant earlier this year. (Zoppo-Sassu lost her reelection bid for mayor this month to Republican challenger Jeff Caggiano, who was inaugurated on November 8, 2021.)

Municipal broadband networks are virtually non-existent in Connecticut, though Plainville started construction on an Institutional Network (I-Net) this summer. If Bristol follows through with building an open access fiber network and is successful, it would provide a powerful example for other communities in the state and potentially inspire local governments in other parts of the state to follow suit.

Editor’s Note: This piece was authored by Maren Machles, a reporter for the Institute for Local Self Reliance’s Community Broadband Network Initiative. Originally appearing at MuniNetworks.org on October 29, 2021, the piece is republished with permission.

Speaking at the opening session titled “Building an innovative converged network infrastructure for the UK,” Watson discussed the challenges and possibilities for offering fast, secure broadband and offered O-RAN as a solution for wider connectivity.

Watson discussed utilizing open RAN to facilitate greater interoperability between vendors’ equipment, as it opens the market to more technologies due to its open configuration. The concept advocates for a more open radio access network than provided today, which is held by fewer vendors.

The Federal Communications Commission has pushed for ways to develop open RAN to minimize network security risk, as the movement has gained significant momentum since Huawei was banned over the past 18 months. FCC Acting Commissioner Jessica Rosenworcel has described open RAN as having “extraordinary potential for our economy and national security.”

“When customers go back into the office, the infrastructure they left behind must have key growth” Watson said, referencing the shift in office culture toward remote work during the COVID-19 pandemic.

“Expectations of customers change,” Watson said, adding that “they expect broadband to be always on, they expect high bandwidth.” Above all, “they expect investment no matter the cost.”

BT is seeking to deploy to 90 percent coverage in the UK by 2028.

On the sidelines of his keynote address, Watson noted BT’s progress in limiting Huawei products to 35 percent of an operator’s fiber access footprint by 2023. The UK government requires that Huawei’s equipment must be removed entirely by the end of 2027. The UK considers Huawei a “high risk” vendor for its network infrastructure.

However, BT is waiting for Huawei’s equipment to grow old before replacing it, Watson said. “Our intention is to ensure that we get the full economic life out of the Huawei [products] that we have deployed,” he said. He said BT believes the products can be used until 2031 or later.

“We’re in talks with government about that timeline” Watson said.

Panel discussion about European fiber investment

Watson said that “densification” happens in areas that are fiber rich, so “providing fiber to smaller cell sites is naturally an evolution.”

He said that BT is looking at a range of alternatives including Wi-Fi solutions to getting 1 Gigabit per second (Gbps) capability to household through open architecture-based solutions.

In addition to Watson, a panel focused on the investment parameters for fiber investment featuring officials from Macquarie Group and Eurofiber.

The panel focused on investment challenges and strategies for broadband infrastructure investment and  discussed an opportunistic vision for broadband deployment. Speaking of more mature market with a history of broadband adoption, Macquarie Managing Director Oliver Bradley asked how providers could transition to more efficiency and maximizing the value of an existing network.

Among the principal drivers for investment include co-investing and deregulation, he said.

The fiber provider, which runs an open network on which private telecoms rent space on to provide services, alleges the city had approved some permits that only allowed it to construct backbone transport lines through the city connecting other cities, but denied it key permits that would have allowed it to extend services to UTOPIA Fiber customers inside the city. Those services include connections to American Fork’s public schools.

In July 2020, the city allegedly terminated the 2018 rights-of-way agreement with no explanation, the lawsuit claims. It also alleges that the city specifically discriminated against UTOPIA Fiber by adding additional scrutiny to its permit requests when it believed no such scrutiny existed for other providers.

Broadband Breakfast attempted to make contact with the city, but a phone call was not answered and a voicemail message was not returned by the time of publication.

“American Fork’s refusal to approve permit requests by or for UTOPIA for service laterals for customers within American Fork has harmed UTOPIA, its customers, and the private ISPs who wish to offer services within American Fork using UTOPIA’s Network,” the lawsuit said. “In some cases, UTOPIA has been forced to buy capacity from other network providers that are allowed to install infrastructure in American Fork, so that UTOPIA can fulfill existing contracts with its customers.

“In other cases, UTOPIA has been forced to cancel existing customer orders for connections within American Fork and has lost significant revenues as a result,” the suit added. “UTOPIA has also recently been forced to cancel or reject over a dozen additional customer orders because UTOPIA is unable, due to American Fork’s conduct, to obtain the permits needed to fulfill those orders, and again lost significant revenues as a result.”

In a press release, UTOPIA’s executive director Roger Timmerman said the lawsuit was a “last resort and not an easy decision to make.

“It is our hope that with judicial review, American Fork City will reverse its policies, work within the boundaries of the law, and ultimately, act in the best interest of the people and businesses in American Fork City by allowing them access to the increased options UTOPIA Fiber provides,” Timmerman added.

UTOPIA Fiber is asking the U.S. District Court for the District of Utah to force the city to pay the company damages sustained as a result of the alleged actions, to find the city violated the law with respect to its actions, and to force the city to cease the alleged “discriminatory and preferential actions” against the company.

UTOPIA Fiber, a sponsor of Broadband Breakfast, has designed, built, and operated more than $330 million worth of fiber projects in the state since 2009.

As the co-founder of open-access telecom company SiFi Networks, I believe that investments in similar open-access infrastructure will help bridge community divides and futureproof a city’s economic and social prosperity.

According to a study by Bento Lobo, department head of finance and economics at the University of Tennessee, Chattanooga’s municipal broadband has delivered over $2.69 billion worth of social and economic benefits during its first decade. With a population of just 185,000, imagine the potential savings for a city the size of New York.

So, how did Chattanooga achieve this and what were the city’s motivations?

Motives behind the madness

In 1969, Chattanooga was dubbed America’s dirtiest city. A post-industrial wasteland, it entered the late twentieth century with a stagnant economy, declining population and high levels of unemployment following the closure of its large manufacturing factories. It’s not surprising that decades later publicly owned utility company, EPB, chose to invest in its residents’ future.

EPB began replacing the underground copper wiring — originally established to exclusively handle telephone calls — with fiber optic cables feeding connectivity to the entire community. Fiber optic networks are vastly superior to copper because they can transport data using photons travelling at the speed of light. Previous infrastructure uses electrons capable of less than one per cent of that speed.

Where before Chattanooga was perceived as an underdeveloped, low-income area, suddenly businesses were moving in, employment was growing, and more adolescents were graduating from high school. Is it about time for other cities to follow suit?

Why other cities should follow suit

Internet connectivity is a human right much like water, electricity and gas utilities. Yet 21 million U.S. citizens are still living without reliable broadband according to the Pew Charitable Trusts. Research also shows that 40 percent of schools and 60 percent of healthcare facilities outside metropolitan regions lack internet download speeds of at least 25 Megabits per second (Mbps) and upload speeds of at least 3 Mbps. This is the acceptable speed defining a reliable broadband connection.

As the Chattanooga model demonstrates, the solution is the establishment of fiber optic infrastructure. With fiber networks, EPB offers residents and businesses gigabit speeds of up to 1,000 Mbps, or 1 Gigabit per second. In hindsight, with this capacity Hamilton County was well equipped to deal with the 75 percent increase in total volume of bandwidth being used per day during the pandemic, with residents being forced to work and educate from their homes.

These gigabit speeds also allow for a high degree of network responsiveness necessary for establishing a smart grid system. Most US cities use standard grid systems, which rely on consumers informing a service when they have a power outage or system failure.

Smart grids establish a two-way communication network using digital devices and automation so that service providers are notified immediately when problems occur. EPB’s Hamilton County smart grid, for example, can quickly re-route power around storm damage decreasing outages by 40 per cent in minutes, according to Lobo’s study. He estimates Chattanooga’s consumers will save $20.6 million per annum simply from avoiding spoilage and loss of productivity due to power outages.

Saving money, saving livelihoods

EPB has more than proven that fiber networks are a socioeconomic investment benefitting everyone, not just those lucky enough to live in a fiber area. Better, faster connectivity will enable businesses in all neighbourhoods to thrive, creating job opportunities. During the ‘gig decade’ (2011-2020), EPB’s fiber network directly supported the creation or retention of approximately 9,500 jobs in Hamilton County, luring the migration of global corporations like Volkswagen. The U.S. Bureau of Labor Statistics has reflected this, stating Hamilton County’s unemployment rate being 4.7 percent as of November 2020, compared to the U.S. overall percentage of 6.7.

Chattanooga at night

The social benefits don’t stop here. A study by South Australia’s premier, Jay Weatherill, correlated gigabit networks with improved support for police and fire communications, wastewater management, traffic control and medical diagnostics. These are all features of SiFi Networks’ FiberCity and if Chattanooga has demonstrated anything, it is that fiber networks improve residents’ quality of living above all else.

FiberCity — the next step?

Chattanooga has demonstrated the importance of staying connected. To this end, becoming a SiFi Networks FiberCity could be the next step for cities across the US.

Privately financed networks, like SiFi Networks’, are often the best option to guarantee necessary funding for construction, maintenance and expansion of fiber infrastructure. Municipalities wouldn’t have to rely on taxpayer’s dollars, which can instead be diverted to healthcare, education and other social entities. During a period of continuous technological evolution, FiberCities have one simple mission: to combine advantages of Chattanooga’s gigabit speeds with futureproofed smart city services across the U.S.

Mike Harris is a successful entrepreneur and technologist, having previously founded Total Network Solutions Ltd in 1989, which he later sold to UK telecoms giant British Telecom in 2005. He subsequently co-founded SiFi Networks and is a current investor in the company. He is also the chairman and owner of the New Saints Football Club in Wales, UK. This piece is exclusive to Broadband Breakfast.

Broadband Breakfast accepts commentary from informed observers of the broadband scene. Please send pieces to commentary@breakfast.media. The views expressed in Expert Opinion pieces do not necessarily reflect the views of Broadband Breakfast and Breakfast Media LLC.

SiFi has plans to begin developing fiber networks in 30 cities by the end of 2022 and to pass over 40,000 homes per month by early 2023.

Ben Bawtree-Jobson, CEO of SiFi Networks, said that the company is working with more than 100 cities and has plans to expand FiberCity Aid, their program which decreases the network costs for ISPs providing service to low-income residents, in an effort to close the digital divide.

The company said that its open-access model gives “communities a much-needed choice against existing cable monopolies and duopolies whose networks have fallen far behind new technologies and skyrocketing consumer demand.” Open access networks allow multiple telecoms to use the same infrastructure to provide services.

Bawtree-Jobson, alluding to existing copper and cable networks being at or near capacity, warned that, “communities need to make policy decisions pertaining to broadband in the next 24 months. Prioritizing long-term competition should be first and foremost in the minds of lawmakers so their cities and towns are no longer hamstrung by large monopolies.”

Additionally, on Wednesday SiFi Networks and East Hartford Mayor Marcia Leclerc announced that East Hartford, Connecticut, is receiving a $40 million all-fiber internet network. This will be both the first open access and first all-fiber network in the state of Connecticut, the company said.

“We’re able to partner with communities to build FiberCities on an Open Access network, using private capital, at no cost to taxpayers. It’s a win for consumers, it’s a win for business, and it’s a win for government,” said Bawtree-Jobson.

Founded in 2012, SiFi Networks’ business plan is to privately fund, build and operate citywide, open access, 100 percent fiber networks. Their networks are made available to internet service providers, providing them with the ability to lease space on SiFi’s network and enter a market quickly and efficiently. Service providers would then be expected to concentrate on customer service and support.

SiFi is currently developing or operating in more than 40 cities across the United States, covering over 1.5 million homes and businesses. SiFi has stated that ISPs of all sizes are welcome to partner with their network to provide thousands of Americans with fiber internet. The APG Group recently acquired 16.7 percent of SiFi Networks while also investing 500 million dollars for joint ventures into SiFi’s open access model.

“I am trying to figure out if there is increased interest in open access or if it is more viable now [due to modern technology],” said Christopher Mitchell, director of the Institute for Local Self-Reliance, an advocate for community broadband. Open access networks allow multiple internet service provider to rise on the same infrastructure, thus in theory increasing competition and driving down prices.

Mitchell said that while UTOPIA, a prominent fiber builder that uses an open access model, was once considered to be an error that advocates had to explain away, they have turned themselves around, and are now considered to be one of the leading examples of open access done right for the entire country.

UTOPIA chief marketing officer Kimberley McKinley has been with the company for more than ten years. During that time, UTOPIA has transformed from a blight on the record of the open access model, to a “leading light,” in the words of Mitchell. When explaining open access, McKinley likens it to an airport—a facility built by a municipal body but primarily utilized by private entities.

The model comes with several inherent benefits over conventional approaches, the conference heard. “When a community owns [the infrastructure] they’re going to build it to the specs they need,” McKinley explained. “Private [carriers] will employ cost-cutting methods wherever they can.”

Mitchell was quick to point out that speed is not the only important aspect of the open access model, though it is often one of the most prominent features. Jeff Boozer of ETI Software Solutions said that open access’s most important feature is that it allows service providers to specialize their service. Rather than investing their capital in the infrastructure to serve a community, they can invest in other solutions to better serve their communities.

The community connection

McKinley also noted that open access keeps money local and allows communities to support regional ISPs and businesses rather than national, corporate behemoths.

For the model to continue to find success, Mitchell stated that efforts need to start with solid anchor ISPs and other organizations municipalities can trust, because if the ISP provides poor service, the whole model will suffer.

Though the panel unanimously agreed that there should never be a one-size-fits-all approach, they were all very supportive of expanding open access efforts, “In time, if we can demonstrate the benefits of open access, [more regions] will adopt it,” Mitchell said, “Once we hit 500,000-1,000,000 homes—then we’ll start to see serious innovation.”

With the infrastructure bill expected to see a vote Thursday, with billions in funding going to the states, experts at this year’s Digital Infrastructure Investment conference said the money could be the policy leverage needed to push the open access concept.

The Digital Infrastructure Investment conference hosted by Broadband Breakfast heard how counties favor open access networks to drive connectivity, competition among providers, and make internet access more affordable.

“We’re certainly in favor of open access,” said Julie Wheeler, president commissioner of York County, Pennsylvania, noting that affordability and access were York County’s chief priorities. She said York took advantage of Coronavirus Aid, Relief, and Economic Security Act funding they received last year to build a 16-mile dark fiber backbone. The county is now focused on building out their middle mile infrastructure.

Ramiro Gonzalez, director of government and community affairs for the City of Brownsville, is working to bring Brownsville away from being the least connected city in America. His team’s action plan was created during the pandemic working through many models and opportunities. They have allocated 19.5 million dollars into building the middle mile network for Brownsville.

“The middle mile will provide resiliency to all our buildings” and utilities, said Gonzalez. He says the city saw the most value in building middle mile infrastructure and then opening the infrastructure to investors to grow the network from there.

Digital Infrastructure Investment 2021 was hosted as an online and in person conference by Broadband Breakfast at the Broadband Communities Summit. The recording of the Monday event is available for registration and replay.

Open access networks have been a topic of great interest, as cities and states try to figure out how to expand broadband infrastructure. The broadband portion of the infrastructure bill that is expected to be voted on in the House on Thursday will give money to the states and cities to divide. Telecoms have been concerned that builds by municipalities, who then allow other telecoms to ride on it, would effectively replace the incumbents. Republicans in some states have even sought to limit community networks.

But some have suggested that the issue must be framed as more cooperation with providers rather than an existential crisis for them, while others have even said municipal broadband networks with open access provisions could help alleviate competition fears.

Private companies signal issues with open access

Carter Old, co-founder and president for Tachus LLC, approaches networks with one hundred percent buried fiber due to events like hurricanes and floods that have been a tragic part of the recent history of Houston, where Tachus primarily operates.

Tachus’ strategy is to bring a “blazing fast pipe of internet” and from there “allow the customer” to decide what internet experience to bring to their home. “In order to deliver hands down the best customer experience,” said Old, “we feel that owning and maintaining our network is the best way to do that.”

For Ting Internet’s Monica Webb, having too many providers on the same pipeline could potentially create a financial problem whereby a price war would leave some providers without much profit.

John Burchett, head of public policy for Google Access and Google Fiber, noted that building broadband infrastructure is slow, and that Google Fiber is “picking up steam” to penetrate suburbs and small towns.

“With every passing day there’s a new model out there,” he said, stating that there are many paths to building broadband infrastructure. Though he said that Google would be interested in providing an open access network on which it would compete against other providers, he clarified that, “I don’t think you’re going to find any provider who will build a fully open access model,” though he made clear that Google has offered service on shared or leased networks before.

One problem Burchett raised is the lack of choice that the majority of America is facing, alluding to a middle ground between local monopoly and an over-saturated market.

The short answer is: not necessarily. For years the federal government has provided subsidies to incumbent ISPs hoping they will solve key issues with broadband in America and still access to the internet continues to be a challenge. What we need is a radical broadband overhaul where we can level the playing field for smaller ISPs to compete in the marketplace and fill the gaps incumbent ISPs have neglected for years.

As the broadband infrastructure funding provisions emerge, it appears that states will have a major role in determining how to allocate these resources. And, they must make careful considerations to help connect the unconnected and meet the needs of their residents. As access to a robust digital communications network is so critical now – in an ongoing pandemic era – states also have to look ahead and ensure they are creating sustainable and long-term infrastructure in the public interest.

Creating open-access conduit systems

State governments should focus on enabling key infrastructure, namely conduits, rights of way and utility poles – as these are the biggest hurdles for ISPs looking to extend fiber. Sometimes referred to among pros as “layer zero”, the telecom market can be transformed with open-access conduit systems running across the country and extended locally. A conduit highway would be akin to the interstate in which fiber could be easily run between cities and towns across multiple states.

An open-access conduit system can help create a more approachable marketplace for new ISPs to enter and help to fill coverage gaps left un-served by incumbent ISPs. Easier and cheaper access to neutral utility poles would help to reduce the cost of broadband access and allow providers to easily pull their fiber optic infrastructure to homes, businesses, and wireless towers, especially vital for longer-distances in rural areas. In NYC, for example, there is a robust competitive marketplace enabled by a shared conduit system managed by Empire City Subway.

Although currently limited to boroughs of Manhattan and The Bronx, this carrier-neutral system allows multiple ISPs to run cables up and down streets with ease and provides a pathway to extend fiber access to additional NYC neighborhoods. Across the country, open-access models are proliferating, including Ammon, Idaho, as summarized in a recent report by Benton Institute for Broadband & Society.

Leveling the ISP marketplace

By creating open infrastructure systems, more providers can enter the marketplace and create increased competition as the barriers to entry are reduced. Previously, incumbent ISPs have received billions of dollars to close the digital divide, – the divide, as well as their market power, persist.

By creating infrastructure that brings additional private ISPs into the marketplace, states can give residents and businesses  more choices to meet their internet needs which is in the best interest of everyone. More competition also means that incumbent ISPs need to step up their game and offer the services they boast about – or they risk losing market share to private competition. In other words, a long-term, sustainable solution.

Embracing the public infrastructure/private service model

When considering a new infrastructure project, oftentimes, the burden of proof lies with the state. However, with the public infrastructure/private service model, the risk is shared between the state and the ISP. This model enables cities and counties to finance and maintain infrastructure while also managing rights-of-way. And, private or incumbent ISPs can ensure broadband access including cable, fiber optic, or wireless. This is a scalable option for communities that are unaware of how to operate communications networks but want to own and control core communications assets.

States have a major undertaking ahead as they consider how to utilize their infrastructure funding to boost public works projects. As broadband infrastructure development has been so crucial in the last year, creating an improved marketplace for ISPs through open-access infrastructure should be their priority in their long-term public interest.  And with a public infrastructure/private service model, the risk will be shared with providers.

Shrihari Pandit is CEO and co-founder of the New York City-area fiber provider Stealth Communications. This piece is exclusive to Broadband Breakfast.

Broadband Breakfast accepts commentary from informed observers of the broadband scene. Please send pieces to commentary@breakfast.media. The views expressed in Expert Opinion pieces do not necessarily reflect the views of Broadband Breakfast and Breakfast Media LLC.

As the CEO of fiber infrastructure developer SiFi Networks, I can attest that both emerging and established ISPs stand to gain from a shared broadband model.

Indeed, without healthy competition in the economy, big players could potentially change and charge whatever they want for services that don’t suit the needs of the consumer. For many Americans, this means limited options in terms of providers and services. So, how have we got here?

Monopolies: A competitive advantage?

ISPs have always seen it as a competitive advantage to own and operate their own broadband infrastructure. This makes it difficult for smaller companies to break through, stifling competition and maximizing profits for established corporations. However, heavy investments in network infrastructure can be a double-edged sword — companies have so far disregarded the costs of tying themselves up in long-term infrastructure projects and are now struggling to divest and adapt to a rapidly changing market.

This is why many U.S. towns are still served by slow, outdated cable and the national fiber coverage sits at a meager 32 per cent. But, in an age where the internet is critical for education, healthcare and business growth, consumer demands for high-speed connectivity make fiber optic the only viable option.

As it stands, only the big telecoms players can feasibly upgrade their cable networks. However, this is costly, disruptive, and takes years to complete, meaning ISPs cannot expect a quick return on investment.

A new broadband ecosystem is needed to give ISPs of all sizes the chance to respond to consumer demands without necessarily overhauling their existing network infrastructure, a costly and time-consuming option. It is here that embracing open access broadband models may prove effective and helpful.

Don’t miss Broadband Breakfast’s annual Digital Infrastructure Investment mini-conference, which is sponsored by entities including SiFi Networks. The event unites infrastructure investment fund managers, institutional investors, private equity and venture capitalists with senior broadband leaders and brings clarity to the next business model for advanced digital infrastructure. 

Fostering competition with open access

Open access infrastructure essentially means sharing a fiber optic network. Many companies are reluctant to use this model because they believe that increased competition could negatively affect their profits. In reality, there are many benefits to be gained from using a shared network infrastructure. The first is that open access broadband gives ISPs access to a larger pool of potential customers. Giving consumers more choice over their broadband packages and providers will attract a more diverse demographic of customers and thus, promote overall revenue.

At a time when customer demand dictates the need to upgrade services and improve connectivity speed and quality, open access can also help ISPs of all sizes minimize costs. Construction and maintenance of a network is carried out by the infrastructure developer, freeing up budget for ISPs, who can redirect it into areas of the business that need extra attention, such as boosting customer relationships. Larger ISPs, who spend millions of dollars per year maintaining their network infrastructure, could pull their savings into improving and diversifying their product offerings.

Sharing an infrastructure will mean more ISPs can operate in the market, fostering competition, lowering prices and offering better consumer choice. Citizens who previously felt cut-off from basic educational and healthcare services because they couldn’t afford their only broadband option, should then be able to pursue more affordable packages. This will naturally encourage more residents and businesses to subscribe, creating a larger pool of potential customers and ultimately improving economic growth and social mobility.

Open access is attractive to larger ISPs too. As it stands, the telecoms sector ranks at the bottom of 46 industries for customer satisfaction according to the American Consumer Satisfaction Index. Therefore, if they didn’t need to budget for the operation and maintenance of their fiber, and to upgrade outdated copper-based networks that no longer satisfy consumers’ demands, more money could be invested in bettering customer communication and service. If customers are happy with their ISP, and a good brand reputation can be established, this will be a huge competitive advantage.

“Fair competition is what made America the wealthiest, most innovative nation in history,” said Biden during his White House press conference. If smaller ISPs had a fair chance to enter the market, the well-established big players could stay competitive by improving their customer experience and tailoring their services to satisfy the needs of their customers. Ownership of the network infrastructure is no longer the only or even the best way to compete in the high-speed internet space. An open-access model will diversify the market and allow a variety of ISPs to thrive.

Ben Bawtree-Jobson is CEO of SiFi Networks, which funds, builds and owns FiberCity networks. Internet Service Providers, 4G/5G carriers and other service providers wishing to deliver ubiquitous high-speed broadband services to business and residential properties in cities make use of FiberCity networks, which also offer connectivity for city-wide Internet of Things applications. This piece is exclusive to Broadband Breakfast.

Broadband Breakfast accepts commentary from informed observers of the broadband scene. Please send pieces to commentary@breakfast.media. The views expressed in Expert Opinion pieces do not necessarily reflect the views of Broadband Breakfast and Breakfast Media LLC.

In April, Mayor Eddie Sundquist formed a task force to assess the potential for a municipal fiber network in Jamestown. The city is currently working with EntryPoint Networks on a feasibility study to estimate the overall cost of the project, as well as surveying residential interest in building a municipally owned open access broadband network in Jamestown.

If the city decides to go through with the project, Jamestown will be the first city in New York state to embark on a municipal fiber build. Although many cities across New York state own dark fiber assets, and cooperatives in the southeastern and northern regions of the state are serving some residents, no city in the Empire State has moved forward with building a citywide fiber-to-the-home network.

Idea dating back to Sundquist’s mayoral campaign 

Connecting citizens to new technology was a component of Mayor Eddie Sundquist’s 2019 mayoral campaign, centered around efforts to enhance economic development and community revitalization projects.

“Who says that we can’t become a technology hub attracting businesses around the country with our low cost of living and rich resources? Who says we can’t wire broadband and fiber to every home and business in this city at a lower cost?,” WRFA reported Sundquist campaigning in 2019.

In an interview with the Institute for Local Self Reliance, Mayor Sundquist recalled that the message was well-received by Jamestown residents, and that even pre-pandemic, city residents were calling for more reliable Internet access offering higher speeds.

Jamestown residents are currently stuck with one or two Internet Service Providers to choose from: Charter Spectrum and Windstream. In the process of conducting the feasibility study, network planners learned that the cost for Internet access in the community is comparatively high for the lower-than-average Internet access speeds residents are receiving.

With a little more than a year in office under his belt, Mayor Sundquist sees the proposed network as more than infrastructure essential to growing the economy. He considers the fiber network the key to connecting citizens to 21st century opportunities and revolutionizing the way residents connect and interact.

Impacts of open access municipal fiber

Under the open access network model Jamestown is pursuing, the city would own and maintain all network infrastructure, which the city would then lease to third-party ISPs to compete in offering Internet services to residents. Since the city would own the infrastructure, it would be able to establish basic network policies to address community-specific needs, such as prohibiting bandwidth caps or providing a service option affordable for low-income residents.

To ensure that low-income households are able to access the network, Sundquist said the city would require ISPs offering service over the network to provide a low-speed, low-cost Lifeline service option.

Throughout the pandemic, private providers refused to connect local residents with outstanding balances to free services being offered under the Emergency Broadband Benefit program, Sundquist said, echoing what he recently told WNY News.

“Just from talking to families and school kids alone, the ability to have free or low-cost internet is incredible, it is such a huge need. We’ve had so many families that had to go without because a lot of these companies refused to connect them up because of past due balances and bills.”

Although Sundquist said the low-speed Lifeline option would provide enough bandwidth for Jamestown’s residents to access virtual education and telehealth resources, Jamestown could consider taking a page from the book of Hillsboro, Oregon, whose citywide FTTH network provides symmetrical gigabit connections for $10 a month to qualifying low-income families. The city of Jamestown could also choose to model Chattanooga, Tennessee. Chattanooga’s EPB Fiber network recently committed to supplying low-income households with students free 100 Mbps symmetrical connections.

Besides the benefits a municipal fiber network would have for Jamestown students, it would also be a game-changer for Jamestown’s intergovernmental operations.

The municipal network could alleviate recurring charges the city pays to lease Internet and telephone services from multiple providers. Though unsure of the exact figure, Mayor Sundquist said that nearly all municipal buildings are connected with fiber service which costs “around $500 a month per building.” As the city owns several buildings, “the costs are astronomical when you tie in phone services and Voice over IP (VoIP) services. We’re talking thousands and thousands per building,” Sundquist said.

The cost-saving benefits of a city-owned fiber network would also aid Jamestown’s municipal power plant. The city maintains a utility company which currently leases Internet service. “To be able to connect . . . our utility service or to allow our utility service to use their own connection between substations is really critical,” Sundquist said. “It [would provide] a really incredible savings to the city.”

Beyond that, the network would also assist in helping Jamestown move towards Smart City initiatives, such as digital monitoring of water and electric meters.

Prioritizing mental health with federal relief funds

Jamestown is considering using $3 million of the $28 million in American Rescue Plan relief funds the city is set to receive over the next three years to build out broadband infrastructure.

According to the city’s Recovery Funds Master Plan [pdf], the highest spending category the city of Jamestown is looking to invest in is economic development, aiming to increase tourism, retool businesses, and attract new tech companies to a “Rust Belt” city. Another priority is for the city to invest in general services to complete city construction projects that have been on hold.

Also high on the city’s spending priority list is to direct relief funds to address housing and neighborhood issues, as well as mental health issues, which have become increasingly prevalent as residents have struggled to cope with the ongoing pandemic.

Jamestown’s Master Plan reports that “in the city alone, 6.5% of all calls for service from the Jamestown Police Department are to check on the well-being of an individual. This, coupled with an increasing homeless population in the city, creates the need to radically change how we address housing and mental health disparities in our community.”

In addition to a Mental Health Rapid Response project the city will be dedicating relief funds to, investing in a municipal fiber network would also support city efforts to improve access to mental health resources.

According to Sundquist, the low-cost Lifeline service required of ISPs on the citywide network would support mental telehealth initiatives and prove valuable to residents most afflicted by the pandemic by giving them a way to access telehealth services.

The city would also be able to subdivide and segment the municipal network to support its mental health goals. “For example, if we really needed to connect with folks that needed mental health evaluations or are currently working with therapists, we could create a specialty private network off of our network,” Mayor Sundquist told ILSR.

Mayor Sundquist said he is excited about the potential of using American Rescue Plan funds to improve Internet access across Jamestown, and for the immeasurable benefits a municipal open access fiber network could bring to town.

Listen to Episode 460 of the Community Broadband Bits podcast to learn more about the connectivity issues afflicting the Western part of New York state.

Check out this video on Mayor Sundquist’s effort in Jamestown.

Editor’s Note: This piece was authored by Jericho Casper, a reporter for the Institute for Local Self Reliance’s Community Broadband Network Initiative. Originally appearing at MuniNetworks.org on August 13, 2021, the piece is republished with permission.

Corrado, who was on a panel hosted by Broadband Brunch’s Craig Corbin about open access networks, said the success of the model, which allows third-party providers ride on existing broadband infrastructure, will be based on how it is framed.

To do this, Corrado said, open access network hosts often must educate incumbent providers, local governments, and consumers about the value of the model.

Corrado explained that one of the most important aspects of this process is explaining that open access is not designed to supplant incumbents. Working with Medina County, Ohio, Corrado said he would use other pieces of infrastructure as examples to point out how public/private ventures could be fruitful for all parties involved.

One such example he identified was airports, which are built with public funds under federal regulations but are used to facilitate travel through private airlines.

Similarly, public access models can utilize public monies to put toward facilitating the creation of networks, which can then be used by private entities. Corrado stated that in Medina County, this model saw rapid improvements for consumers. He noted that in a region once dominated by one or two carriers, there were now 14 unique carriers. Additionally, over the course of eight years, service prices fell 50 percent while connection speeds continued to increase.

Open access more than just service improvements

Panelist and UTOPIA Fiber CEO Roger Timmerman added that open access is about so much more than speed now, however. He said that in the past, many viewed open access merely as a solution to bring down prices while not compromising service.

Timmerman explained how this has changed over the years, broadening to address concerns such as net neutrality and privacy. As far as he is concerned, Timmerman stated that in the regions covered by UTOPIA Fiber, net neutrality is a nonissue, and that open access is a permanent solution.

Because of the open access model, Timmerman argued, monopolies and throttling have been made stuff of the past.

Russ Brethower, senior manager of wholesale fiber for Washington State’s Grant County Public Utility District, made a point to add that one of an open access model’s goals should be to lower barriers for carriers to begin operations in a region. This is how monopolies often lose their grip on regions that may represent an area of low returns on investment for companies that cannot otherwise afford to build to.

Timmerman added that open access models should never strive to simply replace an existing cable or wireless monopoly with a fiber monopoly, and that doing so would completely go against everything they are trying to achieve with this model by giving consumers more freedom in how they access the internet.

Over the past few months — and increasingly since President Joe Biden’s American Jobs Plan in March thrust the importance of municipal builds into the spotlight – there has been concern, specifically from Republicans, that municipal networks could cripple competition. Critics of those networks have sought to outlaw them as a result.

But allowing ISPs to use municipal networks to sell last-mile service to homes and business, cities can effectively reduce competition fears of critics, increase competition between providers, and ultimately reduce prices for consumers, said Ben Lewis-Ramirez, co-founder and chief marketing officer at Lit Communities, who was a panelist on last week on Broadband Breakfast’s live online event to discuss the intricacies of open access in the digital age.

Open access can thin margins, affect services

Some on the panel weren’t altogether convinced about the idea. Monica Webb, head of market development and strategic partnerships at Ting Internet, said on the panel that, in her experience, while dissatisfaction with cable and telco monopolies is often the driving force behind open access efforts, open access solutions will not necessarily yield better service to consumers.

“When it comes to competition in open access, prices generally do go down [for consumers],” Webb said. “However, the margins for ISPs can also be narrower, and sometimes service can be impacted.”

Webb and Lewis-Ramirez both agreed that the quality of service offered by telcos is not necessarily improved by open access models, and that municipalities that decide to pursue an open access solution must be sure to vet the companies that they decide to lease their infrastructure to, and establish strict standards for companies to adhere to.

Despite calling an open access a potential silver bullet, Lewis-Ramirez also agreed with Webb’s assessment that there are unique risks associated with open access. In an open access model, those who are deploying and leasing infrastructure assume the lion’s share of risk; ISPs that contract with those leasing infrastructure stand to lose very little, and must expend minimal capital to take advantage of said infrastructure.

Though open access might come with risk, both experts stated that in certain circumstances, open access infrastructure can provide significant value for both consumers and municipal bodies looking to improve network coverage.

The model is receiving attention at the federal level. Amy Klobuchar’s “Accessible, Affordable, Internet Act” would prioritize funding for projects that utilize an open access model.

The municipal network debate

The discussion comes at an interesting time: This month, Ohio’s Republican-controlled Senate passed a budget featuring an amendment that would essentially end municipal broadband in the State. The reason? Municipalities should not be allowed to compete against business for this essential service.

Ohio isn’t alone, either. If the budget passes Ohio’s House, it will be added to the list of more than a dozen states that outlaw municipal broadband services.

Our Broadband Breakfast Live Online events take place every Wednesday at 12 Noon ET. You can watch the June 16, 2021, event on this page. You can also PARTICIPATE in the current Broadband Breakfast Live Online event. REGISTER HERE.

Wednesday, June 16, 2021, 12 Noon ET — “Innovation in Broadband Business Models: Open Access Case Studies”

One of the areas of greatest innovations in digital infrastructure investment concerns open access networks, a growing space for innovation and investment. Join Broadband Breakfast for a session considering how multiple American open access networks — including players in the ownership, network operations, and services areas — have tackled the unique challenges in crafting a business that works for a network that serves multiple stakeholders.

More about Digital Infrastructure Investment 2021 at Broadband Communities Summit

Panelists:

• Monica Webb, Head of Market Development & Strategic Partnerships at Ting Internet
• Ben Lewis-Ramirez, Co-Founder and Chief Marketing Officer of Lit Communities
• Sean Buckley (moderator), Editor in Chief of Broadband Communities

Monica Webb is the head of market development & strategic partnerships at Ting Internet, working with local stakeholders in existing Ting towns and evaluates existing and prospective gigabit network locations and related business projects. Webb spent her early career working in marketing and management in the financial services industry, where she launched channel marketing platforms that continue to dominate channel strategy in the mutual fund industry today.

Ben Lewis-Ramirez is passionate about bridging the digital divide through building open application networks in under-served communities, and was one of the Lit Communities co-founders. He has over 10 years of executive management experience in the outside plant engineering and construction industries, with a focus in business development and strategic planning for the past 3 years. Ben is a vocal advocate for the open application business model, and has published numerous magazine articles and blog posts on the subject, in addition to speaking about it at conferences and other events around the country.

Sean Buckley is the Editor in Chief of Broadband Communities. Buckley comes to the magazine publishing and conference company after serving nine years as Senior Editor at FierceTelecom, a daily online newsletter. He also oversaw FierceInstaller, a weekly publication chronicling trends in network installation. Prior to coming to FierceTelecom, Sean spent eight years at Horizon House publications, serving as senior editor and later as Editor in Chief of Telecommunications Magazine and Telecom Engine.

WATCH HERE, or on YouTube, Twitter and Facebook. 

As with all Broadband Breakfast Live Online events, the FREE webcasts will take place at 12 Noon ET on Wednesday.

SUBSCRIBE to the Broadband Breakfast YouTube channel. That way, you will be notified when events go live. Watch on YouTube, Twitter and Facebook. 

See a complete list of upcoming and past Broadband Breakfast Live Online events.

Although the U.S. has traditionally lagged in open access versus Europe and Asia, a new breed of private and public actors throughout the country are bringing open access into the limelight.

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Chris Lewis, CEO of Public Knowledge, a Washington-based non-profit that advocates for consumer rights and education, argued that open access networks improve competition by lowering the barriers to building much of the infrastructure necessary to sustain a network.

“When those networks are open, any provider can use that infrastructure to offer services. This allows providers to save on [cost], and hopefully see lower prices [for consumers],” Lewis explained. He added that when open access infrastructure is available and a certain baseline level of service is established, companies can then focus on other areas of competition.

“Once a provider does not have a monopoly on a territory, they really have to compete for the attention and the loyalty of consumers,” he added. Lewis gave the example of customer service and responsiveness as an area that broadband providers could focus with the resources that they save from not having to establish their own infrastructure.

Francella Ochillo, executive director of Next Century Cities, said by establishing open access networks that are owned by a municipality, citizens are investing money into their local economy.

Ochillo argued that by giving the community equity in the project, a natural incentive for further improvement would arise. She described the plight of low-income areas that have suffered from decades of disinvestment, and then described the benefits of open access infrastructure.

“It’s so important that the city intervene and provide affordable service that’s actually equivalent to the service that other people would get,” Ochillo said.

Internet speed standard debate

Ochillo added that stopping at the current standard for broadband—25 Megabits-per-second download and 3 Megabits-per-second upload—does not go far enough. She advocated for the 100 Mbps symmetrical service that Federal Communications Commission Acting Chairwoman Jessica Rosenworcel has also spoken in favor of.

Ochillo argued that this kind of competitive service would be what would drive investment and meet the future broadband needs of the next generation.

Not all the witnesses shared Ochillo’s vision for the future, however. George Ford, an economist for the Phoenix Center for Advanced Legal and Economic Public Policy Studies, said that 100 Mbps symmetrical service is not consistent with how consumers use broadband. He went further, arguing that the push for symmetrical service is motivated by fiber companies—though he stopped short of calling it marketing spin.

“If you have a [symmetrical definition of broadband]—particularly in 100/104/a gig—you’re basically saying the only broadband is fiber broadband,” Ford said. Ford later added that this change in definition is concerning to him because he believes that communities that are currently unserved will be lumped into the same category as those who simply have anything less that 100 Mbps symmetrical service, and will have to wait even longer to be served.

Ochillo added that addressing affordability and reliability are only a part of the solution, and that digital literacy is equally important.

“I want to point out this isn’t just about the economics of making sure that that person is trained, it’s making sure that they actually have a digitally literate household because that has a generational impact on the opportunities that everyone that they touch, has.”