America Needs More Open-Access, Middle-Mile Networks

Source: GovTech Published: December 14th, 2020

A new report from the Benton Institute for Broadband & Society argues for more federal support of open-access, middle-mile (OAMM) networks, which “can help the nation meet its deployment and competition challenges.”

By definition, an OAMM network will allow any Internet service provider (ISP) to connect to it, “on nondiscriminatory terms and conditions,” in order to provide last-mile solutions to homes and businesses. Economically, the idea is to encourage fair competition and reduce costs for companies so that credible business plans can be made for connecting unserved areas. 

“The fundamental economic principle is simple: Open-access, middle-mile networks can provide the savings that spur last-mile providers to build further and faster to reach residences,” the report said. “In this way, an open-access, middle-mile model promotes private investment and competition in last-mile service by reducing capital expenditures required to build last-mile connections.”

The report, released last week, also takes aim at a question that Congress has asked about OAMM networks: “If we build it, will they come?” The report claims the answer is “yes” based on evidence in several states, including Virginia, Nevada, Massachusetts, Illinois and Washington. 

An OAMM network can take several forms. One form is the research and education network, which is initially built to provide service to government and community anchor institutions. Later, such a network can start lending fiber to ISPs. The report highlights the Illinois Century Network (ICN) as an example of this network type. 

“[S]tarting in 2013, the network [ICN] began selling service to commercial providers, lowering the cost of entry in rural and underserved regions of Illinois,” the report said. “Forty providers use ICN to deliver last-mile service. For the Illinois Electric Cooperative, operating in a low-population-density part of Illinois — and serving some towns with populations numbering just in the hundreds — the ability to connect to ICN made it financially feasible to deploy fiber to the home, even as its rival, the local incumbent provider, continued to operate slow Internet service over a traditional copper network.”

Massachusetts’ MassBroadband 123 is another example of a research and education OAMM. 

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