The Fiber Broadband Association has recently released the results of its Fiber Deployment Cost Annual Report, conducted by Cartesian. This study offers an in-depth look into the changing costs associated with fiber broadband deployment.
The report highlights that broadband service providers are predicting that the costs for fiber deployment will largely remain stable in 2024 or experience a slight increase of less than 10 percent. This forecast represents a significant improvement compared to the previous year’s report, which had anticipated more dramatic cost increases.
The report points out that the median costs for underground fiber deployment saw an increase of 12 percent compared to the previous year. In contrast, the median cost for aerial fiber deployment stayed largely unchanged.
The study delves into the impact of these costs on the expansion of fiber networks, offering valuable insights for policymakers and industry leaders who must navigate the financial challenges of broadband infrastructure.
Deborah Kish, Vice President of Research and Workforce Development for the Fiber Broadband Association, emphasized the importance of understanding fiber deployment costs. Fiber continues to be the preferred choice for telecommunications investments across the U.S. due to its reliability, scalability, and low-latency benefits.
Deborah Kish noted that tracking the cost of fiber deployment over time is essential to assessing the return on broadband investments. She highlighted that the report serves as a crucial benchmark for both the industry and policymakers, helping them to determine the most affordable path to deploying robust and long-lasting fiber networks that will benefit the broadest number of Americans.
In 2024, fiber deployment costs have continued to rise, driven by increases in both labor and material costs. Labor, in particular, was found to account for 60 to 80 percent of the total deployment costs. However, costs varied depending on the construction method used.
For underground fiber builds, the report noted that plowing was the least expensive method, whereas trenching had the highest median cost. For aerial fiber deployments, the costs for two specific methods — Strand and Lash versus ADSS (Aerial Drop Self-Supporting) cabling — were reported to be similar.
Looking ahead, the report also discusses the positive impact of new federal and state funding initiatives. Programs such as Texas’ $700 million BOOT program are expected to provide significant financial support for fiber providers, allowing more rural areas to gain access to fiber broadband.
Combined with private investment, these efforts are expected to help make 2025 another record year for fiber deployment, despite the overall rise in broadband industry costs.
Michael Dargue, Vice President at Cartesian, expressed optimism about the future, believing that the influx of funding and investment will enable continued growth in fiber broadband infrastructure across the U.S.
TelecomLead.com News Desk