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What is a Neutral Host Network?

Neutral Host Network: The Future of Shared Connectivity

What is a Neutral Host Network?

Ever wonder why some areas have only one internet provider while others have more choice?
That’s where a neutral host network comes in.
It’s a broadband network built to be open to multiple service providers.
Think of it like a highway that anyone can drive on instead of private toll roads.
The network owner focuses on infrastructure.
Providers focus on services.
Communities get choice, competition, and coverage.

Why Communities and Providers Care

Cities want affordable, reliable broadband.
Providers want to expand without crushing infrastructure costs.
Residents want options—not just one ISP.
A neutral host network checks all three boxes.
It’s built for scale, flexibility, and shared use.
That’s why more local governments and private partners are looking at this model.

The Problems Neutral Host Networks Solve

Broadband expansion has some real challenges:

  • High build costs – fiber and wireless deployments are expensive.
  • Limited competition – one provider often dominates a market.
  • Slow expansion – small ISPs struggle to break in.
  • Funding pressure – federal and state programs demand sustainable solutions.
    Neutral host networks help overcome each of these.

How Neutral Host Networks Work in Practice

Here’s the simple version:

  • One network, many tenants
  • A neutral host (city, utility, or private company) builds and maintains the infrastructure.
  • Multiple service providers lease capacity and compete to serve end users.
    It’s not theory—it’s already happening in the U.S. and abroad.

Benefits for Providers, Cities, and End Users

For providers:

  • Lower entry costs
  • Faster time to market
  • No need to duplicate infrastructure

For cities:

  • Long-term ownership of critical infrastructure
  • More providers = more digital equity
  • Attracts businesses and talent

For end users:

  • More choice
  • Better prices
  • Improved service quality

Funding and Sustainability: Making it Real

Federal programs like BEAD, ARPA, and CPF are pouring billions into broadband.
But money alone doesn’t solve sustainability.

Here’s what makes a neutral host network last:

  • Open access policies that attract providers
  • Scalable platforms to manage services and billing
  • Community buy-in to keep adoption high. Without these, even funded projects risk stalling.

Stories from the Field

When I worked with state broadband offices, one pattern stood out.
Projects with single-provider control often hit roadblocks.
But when communities set up open access or neutral host models, things moved faster.
Example: A small Midwest city used federal funds to build shared fiber.
Within months, three ISPs signed on.
Competition drove prices down by 20%.
That’s the power of the model.

What to Watch for Next

The neutral host network isn’t just a trend—it’s becoming the backbone of digital equity.
Expect to see:

  • More public-private partnerships
  • Wireless neutral hosts powering 5G small cells
  • Platforms that simplify multi-provider network management
    The future isn’t about one provider owning the road.
    It’s about building the road together—and letting everyone drive on it.

Learn more

Open Access Broadband Solutions

COS Business Engine

NTIA BEAD Program

FCC Broadband Data

 

Learn more and contact us today!
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Accelerate Growth and your Valuation – Expand your Middle Mile Network with Wholesale FTTH!

Internet, beam scaffolding, computer network, soil, technology

Taking an infrastructure approach to the last mile is a natural development for enterprise networks. As the US aims to bridge the digital divide between rural and urban areas we should look at this natural progression of business models: Middle-mile and enterprise networks have long understood how to build a fiber infrastructure and with a wholesale approach partnered with a wide range of Service providers/ISPs (Internet Service Providers).

For those looking to accelerate growth and improve return on investments on fiber assets by fully monetizing their network, owning the infrastructure to the home and wholesaling to ISPs at the home is a natural next step with keeping full control of the asset and significantly improved margins.

In Sweden and many other countries in Europe, this business model has evolved over the past 10 years whilst fiber penetration has gone from around 50% to around 95% of all households having access to fiber-based broadband. It has been a natural development given that infrastructure investments are normally shared and the large number of service providers in the market. It has not only proven to be successful but also improved fiber asset operators’ financials and valuations for the last 10 years! 

COS System’s CEO Mikael Philipsson was himself part of a Nordic network’s journey expanding from building and operating a backbone and middle mile network addressing the Enterprise market and other operators to adding FTTH with a wholesale approach to the existing business lines. Over 7 years revenue grew 500%, and EBITDA margins were over 80% which led to the enterprise valuation increasing 15 times. 

Here are his top three reasons why you should build and stay in charge of the last mile:

​1. Lower risk and full control

If several ISPs operate on the same network you’re not dependent on one single service provider to be successful (or only your own ISP-service). This also lowers the risk for overbuilds as well as the competition with other technologies such as Wisps, cable operators, etc.

Ideally, instead of competing with them, you partner with these Service Providers so they can use (and pay for) your infrastructure in order to reach their customers with their own services and technology. The important part is that you keep control of the fiber termination in the house and the speeds/services available, and let the ISPs take care of the WiFi and in-house experience. 

Takes rates for this business model are normally above 80%, whereas the average take rate on a single ISP network is somewhere around 30-50%.

2. No churn due to the great variety of services on your network 

If customers connected to the fiber network are unhappy they can easily switch providers and you would still get a wholesale fee, hence no churn.

The barriers are low for new service providers to enter the network as no capex needs to be spent and less networking competence is needed. This will fuel the Service Provider market and the assortment of services and providers will grow. This makes your network more attractive and in the end, improves customer satisfaction! Moreover, you stay in control of your fiber network with available services and can focus on optimizing the wholesale business and expanding your footprint. 

A real-world example is a network built and operated by an electric utility that after 10 years of being their own service provider had managed to get a take rate of very respectable 52%. They decided to shift to a Wholesale FTTH model (and implement COS Business Engine), partnered up with all possible ISPs in the area, and sold their retail service revenue. As a result, they could focus on wholesale revenues/margins. After only three years their total revenue increased by almost 40%, their staff decreased by 25% and their Ebitda margin increased from 6% to 57%. Today, 10 years after the shift, the figures have been further improved. 

3. Higher valuations

With this strategy, the business dynamics are similar to a long-term infrastructure asset instead of a regular telco operating in a competing market. This generates valuations two-three times higher than a traditional telco and attracts infrastructure funds/investors. 

The time to drive fiber deeper into our society is now. Federal and state funders have an obligation to create public-private partnerships and the open wholesale model drives more fiber to more homes. So make sure you don’t give away the gold!

LEARN MORE ABOUT WHOLESALE FTTH TALK TO ONE OF OUR EXPERTS
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