Shrihari Pandit: States Can Enable Broadband Infrastructure Through Open Access Conduits
By creating open infrastructure systems, states can reduce the barriers to entry and foster increased broadband competition.
Now that the infrastructure bill has passed the Senate, we see key provisions included for broadband in America. In fact, a whopping $65B will go toward broadband funding — provided it passes the House this month. But, will throwing more money at broadband help to solve key issues like closing the digital divide and making broadband access more affordable for millions?
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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.
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