Understanding Open-Access Fiber Networks and Their Impact on Internet Service

Cities across the United States are witnessing a new wave of fiber optic installations, marked by painted street symbols and vibrant orange tubes. Albuquerque, New Mexico, is one such city where Gigapower, an open-access fiber network, is being deployed. Unlike traditional internet service models, open-access networks separate the physical fiber infrastructure from the internet service providers (ISPs), allowing multiple ISPs to offer services over the same network.

This model flips the conventional approach where each ISP builds and maintains its own infrastructure. Instead, a single company installs the fiber network and leases access to various ISPs. This setup means consumers can choose from multiple providers competing on pricing, service quality, and bundles, all using the same physical network.

What Are Open-Access Networks and How Do They Work?

Open-access networks are typically categorized into two types in the U.S.: municipally owned and commercially owned. Municipal networks, like Utah’s Utopia Fiber, are community-driven initiatives created when incumbent providers fail to meet local demand for high-speed internet. Commercial networks, such as Gigapower—a joint venture between AT&T and BlackRock—operate similarly but are privately owned.

Both models lease network access to multiple ISPs, encouraging competition that can lead to better pricing, innovative service bundles, and improved customer service. This competition benefits consumers by providing more choices without the need for multiple physical networks.

The Impact on Costs and Consumer Choices

While open-access networks promote competition, they don't always translate into drastically lower prices. For example, in Utopia’s model, consumers pay both the ISP fee and a monthly network access fee (around $30). This can bring total monthly costs for gigabit internet to approximately $85. However, the real value often lies in the variety of bundles, promotions, and customer service options ISPs offer to differentiate themselves.

Pricing for ultra-high-speed plans, such as 10Gbps, varies more widely and tends to target niche customers. For most users, the competition among ISPs on an open-access network means better service options rather than just lower prices.

The Future of Open-Access Fiber Networks

Open-access networks are gaining traction as cities and communities seek alternatives to traditional ISPs that have historically underinvested in broadband infrastructure. Besides Gigapower and Utopia, other initiatives like Colorado Springs Utilities with Ting Internet and Intrepid Fiber Networks in Louisville, Colorado, are expanding this model.

Commercial players like Ubiquity and SiFi Networks are also pushing open-access fiber into multiple states, signaling a broader industry shift. These networks are designed to be scalable, supporting gigabit speeds today and potentially multi-gigabit speeds for future generations, making them a sustainable solution for growing internet demands.

For consumers, the key takeaway is that the physical network provider may not be their ISP. Instead, they will choose among competing ISPs offering differentiated plans over the same fiber infrastructure. This competition could lead to more innovative pricing and service options, ultimately benefiting end users.

In cities like Albuquerque, where fiber has lagged behind cable and DSL, open-access networks like Gigapower represent a promising new chapter in broadband access. The arrival of fiber means faster, more reliable internet, and the potential for ISPs to compete on service and price rather than infrastructure alone.

Why Open-Access Networks Matter

Open-access networks offer a strategic solution for communities underserved by traditional ISPs. They lower the barrier to entry for providers, encourage competition, and provide consumers with more choices. As broadband becomes essential for economic development, education, and quality of life, these networks could be the final infrastructure upgrade communities need for decades.

For consumers navigating this landscape, understanding open-access networks means knowing that your ISP might not be the company that laid the fiber. Instead, you gain the power to choose among multiple providers competing on the same high-speed network, potentially unlocking better deals and services.