Open Fiber Networks in the US: Attending a high demand for connectivity while bridging the digital divide

Introduction:

In an era where reliable and affordable high-speed internet access has become necessary for economic growth and social equality, open fiber networks have emerged as a promising solution in the United States. The potential of open-access fiber infrastructure to transform the nation's digital landscape has garnered attention from policymakers, industry experts, and investors alike. In this article, I will delve into the concept of open fiber networks, their benefits, and their role in improving internet connectivity across the country.

The Need for Open Access Requirements:

Recognizing the limitations of the current internet service provider (ISP) market, the Joe Biden administration's infrastructure plan proposes investing $100 billion in the nation's digital infrastructure [1]. This investment addresses the digital divide by providing millions of Americans with affordable and high-speed internet access. However, FTTx deployments can take time and lots of investments, so why not think of a different model that could exploit a dual-competitive advantage?

Open access fiber networks, which make last-mile connectivity available to private retail commercial access providers at reasonable and nondiscriminatory prices, can create a more competitive market landscape [1]. By fostering innovation beyond the traditional tech hubs and enabling remote work opportunities, open fiber networks can drive economic growth and bridge the digital divide. Furthermore, this approach promotes job creation in urban and rural areas, making high-speed internet access accessible to underserved communities.

The Advantages of Open Access Fiber Networks:

1. Enhanced Competition and Lower Prices: Open-access networks promote competition by allowing multiple service providers to offer services over the same infrastructure. This competition leads to lower consumer prices, particularly for those stuck with cable monopolies [2].
2.  Scalability and Future-Proof Infrastructure: Open fiber networks offer the capacity to meet the ever-increasing demand for internet connectivity. With fiber-optic technology, these networks can deliver high-speed internet, supporting bandwidth-intensive applications and future innovations [3].
3. Efficient Use of Resources: The open access model encourages the "dig once and only once" approach, reducing costs and disruptions associated with future connectivity upgrades [4]. By separating infrastructure ownership from service provision, open fiber networks eliminate the need for redundant network deployments.
4. Public and Private Investment Collaboration: Open-access fiber networks have attracted private investment firms, supporting communities that seek faster speeds and a more comprehensive range of services [3]. Collaborative efforts between the public and private sectors enable the development of reliable and affordable broadband networks. Lastly, fiber deployments take time and require the coordination of several actors, making sustainability a critical aspect of fiber and duct build-out for periods ranging from 20 to 30 years.

Success Stories and Initiatives:

 Several organizations have already made strides in implementing open fiber networks in the US. SiFi Networks, a private company, has been deploying open-access fiber networks nationwide, offering operators 10 Gb/sec fiber access [4]. Similarly, UTOPIA Fiber, an open-access municipal broadband network, provides the necessary infrastructure while allowing customers to choose from various service providers [5].

EPB Chattanooga in Tennessee is another excellent example of a municipality-owned utility that provides electric power and fiber optic communications services to promote economic development and enhance the quality of life across the local area [6].

While Gigapower, a big joint venture between AT&T and Blackrock, will take a while to show economic results, the open fiber business model has many global success stories, such as Brazilian infraco V.TAL; With an aggressive 30 million households’ fiber build-out, V.TAL just managed to grow its revenues by 36% between 1Q22 and 1Q23 [7]

Conclusion:

 The United States stands at a crucial juncture in its pursuit of improved internet connectivity and reduced inequality. Open fiber networks present a viable solution that can revolutionize the ISP market, promote competition, and ensure affordable high-speed internet access for all. By embracing open access requirements and fostering collaboration between public and private sectors, the nation can bridge the digital divide, create job opportunities, and empower communities across the country.

References:

[1] CFR - Open Access Fiber to Improve U.S. Internet Connectivity: [Link]

[2] EFF - Open Access Fiber Networks Will Bring Much-Needed High-Speed Internet Service: [Link]

[3] BroadbandNow - Fiber-Optic Internet in the United States: [Link] & BB Mag - Private Investors take an interest in Open-Access Fiber Networks: [Link]

[4] TechBlog - SiFi Networks is building 10G b/sec open access fiber networks in the U.S.: [Link]

[5] UTOPIA Fiber - Open Access Networks: [Link]

[6] EPB Chattanooga 2022 Financial Report: [Link]

[7] V.TAL Investors: [Link]