Municipal networks contribute to increased broadband coverage

Although Organisation for Economic Co-operation and Development (OECD) countries have made tremendous progress in recent years fostering the deployment of high-speed broadband networks, many challenges remain in terms of how to enhance and expand these networks in order to meet the growing demands of the digital economy.

A new report from the OECD examines experiences with municipal broadband networks in a number of countries including Australia, Denmark, Japan, Netherlands, New Zealand, the United Kingdom and the United States. Sweden, given its widespread use of municipal networks, is used as an anchor country for the analysis. The models and experience of the municipal networks in these countries have varied from being highly successful to not meeting expectations. In some cases, they have provided welcome competition by offering an alternative infrastructure or increased the geographical availability of advanced telecommunication services where none existed. Sometimes they have enabled retail competition by splitting the provision of infrastructure and services based on an open access approach. Proponents say they have contributed to cities and regions, as there are noticeable effects on social and economic developments in these locations, which the report explores. Overall, the report notes, municipal networks play a significant role in providing services for many people in OECD countries. As a result they are a viable and sometimes extremely effective way of supporting the objectives of local communities, addressing unmet demand and creating new opportunities for growth and prosperity in those communities, which otherwise would not be there.