Open access networks will become the "normal" way to design and build networks

Submitted by acohill on Tue, 07/07/2009 - 10:44

The NOFA (Notice of Funds Availability) for broadband stimulus funding was released last week; the document defines how to apply for those funds, and both private sector companies and communities can apply. On page 66, beginning at line 1470, the NOFA does something very important: it provides an explicit preference for networks that offer open access services (or open services) to end users. Here is the exact statement:

Reviewers will also consider whether the application proposes to construct infrastructure and implement a business plan which would allow more than one provider to serve end users in the proposal funded service area.

This means networks that offer competitive pricing from more than one provider get preference--this is huge, and could have important long term consequences.

The rules also do something else quite important on the same page (page 66, line 1463), where there is explicit preference for open access transport, which in telecom jargon is "interconnection." The rules say that companies that post their interconnection fees publicly and agree to nondiscrimination will get preference.

Why is the interconnection clause important? I have specific knowledge of one phone company that offered the exact same circuit/service to a community project at FIVE TIMES the fee they charge to other telcos. That is discriminatory pricing, and it is done to discourage competition and to keep community projects out of the "club."

When the dust settles on the broadband stimulus funding in a couple of years, these two little items buried on page 66 may turn out to be the most important part of the whole effort.