Connect with us

Open Access

U.S. Should Follow UK in Open Access Infrastructure Investment, Say Broadband Breakfast Panelists

Published

on

June 10, 2020 — The U.S. should follow the European example of investing in wholesale open access infrastructure models, said panelists at a Broadband Breakfast Live Online event Wednesday.

One company that has found success using a purely wholesale model is the U.K.’s CityFibre.

“We chose a model that was pure wholesale, because we knew that there were enough retail customers there that did not own any of their own infrastructure, and that if we could show them a scale operator like ourselves that could give them 10 times the speed at 50 percent of the cost and we could get to scale, then they would move their traffic over,” CityFibre CEO Greg Mesch explained.

While this approach has not yet proved workable in the U.S., Mesch said he believed it could still be successful if multiple service providers committed.

“We’ve led a reference design model and then a regulatory model that is maybe fit for purpose for all the Western countries to look at, which is, how would you get a pure fiber provider going and get him in a state where he can really roll out at scale across the country?” Mesch said.

Screenshot of panelists at the Broadband Breakfast Live Online event

The U.S. is held back by a weaker regulatory market than that of the U.K., and also faces substantial lobbying from the telecom and cable industries, said Municipal Capital Markets Group Managing Director Chris Perlitz.

“The struggle we have is that the [Federal Communications Commission] has been stifling our ability and rather stifling the local government’s ability to make proper decisions,” Perlitz said. “And then there’s been a lot of smoke and mirrors in the market, generally not really being clear as a path of how you go about this.”

Matteo Andreoletti, head of infrastructure equity in Europe and North America for the Smart City Infrastructure Fund, agreed with the importance of CityFibre’s model.

“We think that the solution will need to actually have a combination of technologies, but the number one criteria that we use is to promote the open access wholesale model…and the ability of deploying this model at scale to provide reliable connectivity to a high number of cities,” Andreoletti said.

Andreoletti illustrated his point with the example of Smart City Infrastructure Fund-backed SiFi Networks, a private developer of open-access fiber networks in Fullerton, California.

“What we really liked about the business model was their intention to provide a service for tier two and tier three cities —midsize cities that often neglected, or are not able to access the right level of financing and capability,” he said.

Development in smaller municipalities is important in “avoiding a major digital divide, but also it’s a way to stimulate economic growth, because better connectivity drives businesses and preserves competitive disparities,” Andreoletti added.

Ready.net Founder Jase Wilson pointed out the importance of looking into the different ways of capturing value from remote services.

“We’re spending over a trillion dollars a year as a country on health care…and yet there are hundreds and hundreds of telehealth capable public health institutions in the United States, but the people that don’t have access to the internet and strong enough connection aren’t able to do it and participate in it,” he said.

Investment horizons need to be long, Perlitz said, pointing out that he has been working with some healthcare organizations who are just now starting to receive return on telemedicine investments for the first time.

Digital infrastructure investment does not fall into the typical private equity model of three to five year return on investment, Andreoletti added, and current business models depend on visionary cities who are willing to invest in smart city technologies long term.

“The struggle that I’ve seen is trying to get the cities to understand the tangible value,” Perlitz said. “…It compresses the return on investment pretty fast, but it’s hard for them to get their head around, because accounting for those values is hard to do.”

In spite of the longer timeframe, Mesch emphasized the eventual value of investing in pure fiber open access infrastructure.

“If you do it, you will increase the GDP growth in your city by one to two percent per year for the next decade and beyond,” he said.

Editor’s Note: All of these topics will be explored in greater length at Broadband Breakfast’s Digital Infrastructure Investment Physical/Virtual Event at the Broadband Communities Summit. Register here to attend Digital Infrastructure Investment.

Reporter Em McPhie studied communication design and writing at Washington University in St. Louis, where she was a managing editor for the student newspaper. In addition to agency and freelance marketing experience, she has reported extensively on Section 230, big tech, and rural broadband access. She is a founding board member of Code Open Sesame, an organization that teaches computer programming skills to underprivileged children.

Open Access

Gigapower Exec Pitches Value of Open Access Networks to Maximize BEAD Money Efficiency

The open access model allows multiple ISPs to use the same infrastructure. That could benefit Gigapower.

Published

on

Screenshot of Bill Hogg, CEO of Gigapower, during Broadband Breakfast Live Online

WASHINGTON, September 13, 2023 – Gigapower is in talks with state broadband offices about potentially building out open access infrastructure with grants from the Broadband Equity, Access and Deployment Program, the company’s CEO said Wednesday. 

“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.

WATCH HERE, or on YouTubeTwitter 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 YouTubeTwitter and Facebook.

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

Continue Reading

#broadbandlive

Broadband Breakfast on September 13, 2023 – AT&T and BlackRock’s Gigapower Joint Venture

Gigapower CEO Bill Hogg and AT&T President Erin Scarborough headline event.

Published

on

See Gigapower Exec Pitches Value of Open Access Networks to Maximize BEAD Money Efficiency, Broadband Breakfast, September 13, 2023

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.

WATCH HERE, or on YouTubeTwitter 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 YouTubeTwitter and Facebook.

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

Continue Reading

Fiber

Automation Exchange Announces New Managed Services for Fiber Operators

The service provides a centralized communication hub and technical support for open access networks.

Published

on

Photo of John McLauchlin

ORLANDO, August 21, 2023 – South African fiber software company Automation Exchange announced Monday here at Fiber Connect the addition of a new managed services offering that provides new software for fiber operators needs to deploy and support open access broadband networks. 

“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.

Continue Reading

Signup for Broadband Breakfast News



Broadband Breakfast Research Partner

Trending