The Business of Broadband

The Open Access Model for Rural Broadband Networks

Written by Rick Yuzzi | Jul 19, 2022 12:30:00 PM

Open Access broadband networks have been gaining ground over the past few years as governments and municipalities are noticing the many advantages they provide. It’s a way for a city to provide fast and affordable broadband service in areas where a traditional service provider would be unable to generate enough revenue to justify building the infrastructure, without the city having to take on the burden of running a retail Internet business. Instead, once the network is built, the city invites private companies to market internet services over that open network. 

Why the Open Access model is suitable for rural community networks

  • The community will lessen the dependency on the large, incumbent ISPs and open up markets for smaller service providers that might not otherwise have the opportunity or resources to make the business work in that area.
  • The community mainly builds the broadband network not to profit from it, but to create a more attractive and thriving community for residents and businesses. This business case will not work for a private company solely reliant on profits to build and maintain the required infrastructure.
  • The community generally has the experience and resources needed to construct and maintain infrastructure with buried pipes, utility poles and equipment, but not in providing retail IP based services.
  • The community has access to more diverse types of financing than private companies, and ordinarily have a very different time frame for ROI than the private sector.
  • Having multiple retail ISPs market competing services over the open access network helps bring down the price price for broadband for residents and businesses. 
  • By owning the infrastructure, the community will control their own digital future, and can make sure everyone gets connected.

Open access networks can be the foundation for providing fast Internet to unserved and underserved areas, while also boosting the local economy, spurring development and creating an attractive environment for both businesses and residents to thrive.