Report: America Needs More Open-Access, Middle-Mile Networks

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. 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 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.