The Challenge of Open Access -- Lessons Learned Part III

[Commentary] In an open access approach, the local government would build the network out to connect all residents and businesses but not directly deliver services. Instead, multiple independent Internet Service Providers (ISPs) would compete on the network for business, ideally specializing in different niches - some providing great video game optimizations and others focusing on meeting small business needs. Unfortunately, there are reasons we have not seen this approach gain widespread traction. The model is more difficult than is readily apparent. A large part of the difficulty comes from incumbent providers that refuse to use the fiber network. The cable and the telephone companies claim that they don't want to abandon their assets, but that is not the main reason they have refused to participate in these networks. The big cable and telephone companies know that they have terrible reputations and would be slaughtered in a competitive market - so they put great effort in ensuring that they face as little competition as possible. Allowing the open access market to develop would all but ensure mighty Comcast would have to compete against local providers that offer much better customer service, lower prices, and more.

[Christopher Mitchell is the Director of the Telecommunications as Commons Initiative with the New Rules Project of the Institute for Local Self-Reliance]


The Challenge of Open Access -- Lessons Learned Part III