Open-Access, Middle-Mile Networks: Deployment and Competition

Residential and small-business customers have too few options for fixed, robust broadband service, what we refer to as “High-Performance Broadband.” Solving our deployment and competition problems requires the construction of new broadband networks. In other words, we need more competition, and we need more broadband deployment. Our new policy brief concentrates on one solution—the construction of open-access, middle-mile networks. “Open-access” means the network permits any broadband provider to connect to the network on nondiscriminatory terms and conditions. “Middle-mile” networks reach from national and major regional internet backbones to a local connection site. Thus, middle-mile networks bring data to and from an internet backbone to a connection point in a city or town where, in turn, traffic is handed off to the “last mile” network that connects to, say, a home. 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. 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.