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Major ISPs To Increase Open Access Model Adoption

AT&T, T-Mobile increase visibility and credibility of the open access model.

Teralyn Whipple

Jul 19, 2024 — 3 min read

Screenshot of Jeff Bankston, vice president of business development at Underline

July 19, 2024 – The involvement of major internet service providers in the open access model will increase awareness and adoption of the model, said experts at a Broadband Breakfast Live Online event on July 10.

Support for a wholesale model, in which separate companies own, operate, and provide services on a fiber network, has changed the internet industry, said president of trade association INCOMPAS Angie Kronenberg.

The involvement of large ISPs brings interest and attention from other companies and trade groups, continued Kronenberg.

Experts agreed that competition in the fixed internet industry is limited. Most consumers have a choice of only one or two ISPs to connect their homes and businesses, said Kronenberg. Increasing adoption and attention to open access networks will increase competitiveness, she said, praising the way major ISPs drive experimentation of the model.

Jeff Bankston, vice president of business development at fiber provider Underline, said that involvement of companies like AT&T, Verizon and T-Mobile into open access space has increased visibility and credibility of the network model.

He warned industry leaders to be cautious of exclusive agreements between network owners, operators and major telecom companies, which could last for years and potentially limit consumer choice.

However, Brian Hollister, CEO and Co-founder of Bonfire Infrastructure Group, said that these types of agreements are not always a negative thing. Agreements between large ISPs and small network owners can build the model and improve its long term sustainability, he argued.

Isak Finer, Chief Revenue Officer of COS Systems, said that open access networks in the United States are evolving into a three-tier system in which there is a network owner, operator, and ISP rather than the two-tier model between owner and ISP. The three-tier model optimizes specialties of all entities involved and increases efficiency in the system, he said.

AT&T has said that it is expecting open access broadband networks to proliferate in the coming years. The company has already made a bet on the open access approach. In 2022, AT&T joined investment firm BlackRock in an open access joint venture called Gigapower. The companies are aiming to pass 1.5 million homes and businesses with a new fiber network on which AT&T will be the anchor tenant.

July 10, 2024 - New Developments in Open Access Networks

Open access networks are gaining greater traction nationwide. In additional to major players like AT&T (including its Gigapower joint venture with BlackRock) and T-Mobile, UTOPIA Fiber and other such networks are continuing to grow. More cities and regions are committing to open access. Under this model, multiple service providers share the same infrastructure managed by a separate network operator. The promise is a cost-effective way to promote competition and spur innovation, also reducing capital costs for some entrants. But complexities are real and obstacles exist. What new developments and insights are impacting open access networks?