Broadband Communities

MAR-APR 2017

BROADBAND COMMUNITIES is the leading source of information on digital and broadband technologies for buildings and communities. Our editorial aims to accelerate the deployment of Fiber-To-The-Home and Fiber-To-The-Premises.

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MARCH/APRIL 2017 | www.broadbandcommunities.com | BROADBAND COMMUNITIES | 11 numerous households. What happens to buildings that may not have highly desirable (wealthy) subscribers or to small buildings that have a limited number of potential subscribers? Quality service providers may never get around to servicing these buildings – and frankly, they will be more than happy to focus on the upper end of the economic spectrum with no requirements to build out to the underserved. As a result, the digital divide will expand: Affordable housing will receive only very high-cost or unreliable services. LESS INNOVATION Investment in technology innovations at an apartment community is possible only if there is adequate return to the company making those investments. If an apartment owner has adequate leverage to justify these investments, innovation and investment can thrive. If the apartment owner is banned from or limited in realizing a return or exerting control over a service provider, only service providers will have an incentive to invest in innovating. However, few, if any, service providers can realize high enough returns from investing in building infrastructure to spur significant investment in advanced in-building technologies, such as fiber optics, especially if multiple service providers are competing for a finite number of subscribers. Even deep-pocketed multinationals will likely seek investments in technologies and innovations that have much greater scale and global impact than in-building technology. Removing apartment owners from the gatekeeper position will smother in-building technology investments over the long term. Independent operators that compete with large, franchised service providers have long struggled with accessing buildings because of obstacles such as exclusive marketing, anti-bulking provisions and physical lockbox barriers. However, the solution to encouraging innovation and great broadband service at apartment communities is not to strip owners of all control or ability to realize a return on investment from their own fiber optics or structured wiring systems. A better solution is to incentivize owners to invest in their in-building systems, educate them on the harms of tactics used by monopolistic-minded service providers and open the door to true in- building innovation. v Robert Grosz is a board member and an officer of the Multifamily Broadband Council and executive vice president at Elauwit. For more information on MBC, contact Executive Director Valerie Sargent at vsargent@ mfbroadband.org or 949-274-3434, or visit www.mfbroadband.org. Danella works to deliver world- class communications construction, maintenance, and repair services. Our work is crafted to suit the infrastructure needs of our clients and is at the forefront of a dynamic innovative industry. We provide work that is reliable and cost-effective, including: • Fiber-Optic Network Installations • Directional Boring • FTTH Installations • Aerial and Underground Construction • Fiber Splicing • Emergency Restoration With over 45 years of utility infrastructure experience, Danella is a committed to providing the highest quality of work in a safe environment. Questions? Call Dan Howick at 321-259-6124 or email dhowick@danella.com. Corporate Headquarters: 2290 Butler Pike, Plymouth Meeting, PA 610-828-6200 | www.danella.com Florida Office: 581 Washburn Road, Melbourne, FL 321-259-0057

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