The New Open-Access

In the open-access network model, an entity owns a fiber network and allows other broadband providers to use the network to compete for customers. The most common owners of open-access networks are local governments. The network owner makes a big investment in the network and sells individual connections to broadband providers. This is an interesting operating model for an ISP because it doesn’t have to make any significant capital outlays to be able to provide gigabit bandwidth over a fiber network. In the traditional open-access model, the network owner not only owns the fiber, but also the electronics needed to reach customers and they maintain the network and are responsible for repairs and periodic electronics upgrades. However, new open-access models don’t fit the traditional open-access model. In the "conduit model" an entity builds an empty conduit where well-capitalized broadband providers must put forth significant investments to reach and service end users through fiber. In the "dark fiber leasing model" a city builds widespread fiber infrastructure and then leases said fiber infrastructure to broadband providers so they can provide end-to-end broadband servicing. The biggest difference between these models is the size of investments needed to maintain and operate these networks--dark fiber leasing is the least capital and investment-intensive option for broadband providers. 

[Doug Dawson is president of CCG Consulting.]