Friday, August 18, 2023

Sohn: Legacy incumbent telcos, cablecos should see publicly owned open access advanced telecommunications infrastructure as business opportunity and not competitive threat.

Gigi Sohn, executive director of the American Association of Public Broadband, urges incumbent telcos and cablecos facing the significant expense of modernizing their legacy metallic delivery networks to fiber to view publicly owned, open access fiber as a good business opportunity to offer services over the fiber instead of viewing it as a competitive threat.

We are hearing a lot about public-private partnerships now. But Sohn is talking about a true partnership versus local governments merely handing over federal and state dollars to the incumbents as subsidies to build out their infrastructures but not necessarily to provide universal service to all addresses within their jurisdiction.

Here’s what Sohn said on this in a podcast interview this week with Mike Masnick of TechDirt at 47:50:
“Perhaps we should have started with open access to begin with. The facilities-based competition when you have cable competing against telecom competing against wireless, maybe wasn’t the best idea. But it’s the world we live in now and we can fix it by having more open access. I’m always encouraging the incumbents to see community broadband, open access as a business opportunity and not as a competitive threat. And some have approached me quietly and said yes, Gigi, we’d like to find ways to work together and I think that’s really refreshing.”

Facilities-based competition is arguably a wasteful use of high cost infrastructure. “It’s a waste of resources more than anything,” says Carl Ã…hslund, CEO of Open Infra. “Everyone fights, they have to build their own network if they want customers, but it doesn’t make sense. You don’t have two water lines.”

1 comment:

Andrew Cohill said...

Open access as a business opportunity has been my argument for a long time--what's not to like when a local government handles the capex and turns over most of the customer revenue to private sector providers?