As evidenced by experiences throughout the world, Government policy has had a significant impact on broadband deployment and the development of Local Open Access Networks (LOANs).  A major issue for Government policy makers is a specific recognition of the need for these types of networks and the role of local Governments and voluntary organisations in establishing them. 
 
Local Access Networks deployed by local Governments and voluntary organisations have generally been in response to the lack of available and affordable broadband services.  Networks operated by voluntary organisations tend to be open; whereas, those operated by local Governments are either open or closed.
 
Local Access Networks have been actively encouraged by Governments in a number of countries as a means of providing broadband services to rural and remote areas.  Virtually every country has sparsely populated areas that are costly to serve and considered uneconomic by incumbent service providers.  Although it is more desirable to have open access, many of these networks are closed due to the difficulty in attracting multiple service providers.
 
Even countries like Japan, which has been very successful in the deployment of broadband infrastructure in most of the country through a mixture of regulatory and fiscal policies, are faced with digital divide issues in rural areas.  Its approach has been to encourage public private partnerships through Government financing to develop community based networks, such as the Hyogo Information Highway to deliver ADSL and the Nankoku City WLL System to provide wireless broadband services.[i]
 
In some cases, local Governments have established Local Open Access Networks to ensure that the community has an advanced network infrastructure designed to provide it with a competitive advantage that goes beyond the provision of a basic broadband service.  This is the approach that has been taken in projects like UTOPIA and the deployment of other FTTH systems in Sweden and the Netherlands encouraged by Government policy.  These types of projects have often been the most controversial as they are, in effect, developing a new paradigm in the ICT sector by providing a common platform that is open for use by all service providers.  The deployment of FTTH LOANs may be the optimal solution; but they are unlikely to provide an operational model for developing economies.
 
The continued expansion of Local Access Networks will depend on both the financial viability of these networks and Government policy that can either restrict or promote their development.  It is clear that the support for Local Open Access Networks is mixed and that it will become an increasingly more important issue that will have to be addressed by all Governments.

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