West Des Moines, Iowa offers model for states, regions to scale up open access fiber telecom infrastructure

To ensure the timely modernization of legacy metallic telecommunications delivery infrastructure to fiber to the premise (FTTP) infrastructure at significant scale, new models for its construction and operation are needed. Investor-owned providers using vertically integrated, closed access networks tend to restrict capital investment to densely populated areas compatible with their business models that demand a rapid return on investment.

Subsidies of up to 75 percent of construction costs may be available in the near term through the federal Infrastructure Investment and Jobs Act (IIJA) of 2021. But eligibility restrictions on the funding will likely result in it being allocated only in the most remote and insular parts of the country since those restrictions are designed to protect the markets of incumbent providers that have a presence outside of those areas. That will leave it to the states to come up with new approaches.

One promising appearing model is emerging in West Des Moines, Iowa. The municipality finances and builds the basic supporting infrastructure – in this case buried conduit. But it could also be aerial fiber on metal half height poles placed in existing rights of way, for example. A private sector network operator – here Google Fiber – installs the telecommunications infrastructure: the fiber, network electronics and premise connections. It shares part of its end user revenues with the local government to finance bond debt incurred by the government to construct the supporting infrastructure. Since it is operated as an open access network, other providers can pay a fee to access it and the end users it serves.

This model for the construction and operation is particularly well suited to exurban and small town America that like West Des Moines are only partially served by legacy providers using metallic infrastructure.

To make it rapidly scale to meet burgeoning demand for connectivity, this model provides a framework for a statewide or regional scope – for example local governments forming a regional telecommunications authority like California’s Golden State Connect Authority. Like roads and highways and airports -- the Golden State Connect Authority regards advanced telecommunications infrastructure similar to regional airports – very substantial financing capacity is needed beyond that which individual local governments can provide. In addition, the limited, one off grant subsidies that have been the predominant financing model don’t provide funding sufficient for the task at hand.

U.S. telecom infrastructure crisis natural outcome of nation’s failure to address foundational questions

America’s advanced telecom policy failure stems from the failure to address two fundamental questions:

1/ How much would it accurately cost to bring fiber to most every American doorstep?

2/ What are the optimal roles of the public and private sectors in financing, building and operating this critical infrastructure -- and constructing it in the most expeditious manner given only about one third of homes have fiber connections?

The failure to honestly ask and answer these questions and make clear policy choices based on the answers has led to the default market-based, incremental, ad hoc and highly granular efforts dating to the mid-1990s. That has led to using throughput as a metric of progress vs. replacing legacy metallic telephone and cable delivery infrastructure with fiber to the premise (FTTP) and what scholars like Christopher Ali describe as “The Politics of Good Enough” and barely adequate infrastructure prone to near term obsolescence. While Ali frames his argument in binary terms of urban vs. rural infrastructure similar to the deployment of electric power distribution infrastructure in the early 20th century, it extends to other geographic settlement areas due to highly granular, incremental market driven deployment based on household density and demographics and other factors.

The failure to address these overarching questions and make solid policy decisions has in its place produced sloganeering like “Internet for All” -- meaningless and merely aspirational without a realistic plan to get the nation there -- and getting lost in the weeds.

A glaring example is “broadband mapping” and the controversy surrounding the FCC’s related efforts that will determine the allocation of advanced telecommunications infrastructure subsidies appropriated in the Infrastructure Investment and Jobs Act of 2021. “Broadband mapping” encapsulates the previously mentioned flawed policy of defining progress based on throughput vs. infrastructure modernization. Even more fundamentally, the failure to determine the optimal roles of the public and private sectors, with mapping as protectionist response by investor-owned providers seeking to protect their interests in the meantime.

On telecom infrastructure modernization, politics of "good enough" likely to prevail at expense of FTTP

Despite the enactment of the Biden administration’s Infrastructure Investment and Jobs Act (IIJA) one year ago, the United States is unlikely to show significant progress over the foreseeable in modernizing its legacy metallic telephone and cable TV distribution infrastructure to fiber to the premises (FTTP) for advanced telecommunications. Here are some of the reasons:

• Policymakers will likely argue that getting American homes connected as quickly as possible – the urgent need shown during pandemic restrictions – is paramount and hence any technology that can do that is “good enough.” They’ll also argue that fixed terrestrial wireless (FWA) and satellite delivered connectivity have demonstrated their ability to do that, particularly in areas that meet the legislation’s Broadband Equity, Access, and Deployment (BEAD) Program (BEAD) primary eligibility standard for construction subsidies (>80% of prems are unable to order service with throughput of 25/3 Mbps or greater). That could also lead to efforts to regulate the rates for these technologies since they typically priced above landline delivered services.
  
  
• Fixed wireless – licensed or not – and satellite will be deemed “good enough” after intense lobbying of the federal and state governments over the BEAD subsidy eligibility standards. Notably, the director of the National Telecommunications and Information Administration (NTIA) – charged with overseeing the distribution of the subsidies – suggested satellite and fixed terrestrial wireless will have to suffice in some high cost areas of the nation.
  
  
• The FCC’s recently released “broadband map” that will determine eligibility for infrastructure construction subsidies designates areas currently served by satellite and mobile wireless providers offering licensed FWA as ineligible for funding.
  
  
• Coax cable and second generation DSL fiber to the curb (FTTC) infrastructure will also be deemed “good enough” over FTTP in more densely settled parts of the nation. The cable industry will continue to refine its DOCSIS signal compression technology and only invest in FTTP selectively in newly built residential subdivisions whereas just a couple of years ago, they were installing coax in newer developments.