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2024 Fiber Deployment Cost Annual Report

The Fiber Broadband Association and Cartesian have released the 2024 Fiber Deployment Cost Annual Report, which provides a detailed analysis of the evolving fiber broadband landscape in the United States, emphasizing both the significant progress made and the challenges faced by the industry. As of 2024, 76.5 million U.S. households—over half the nation—are now serviceable by fiber, a remarkable achievement driven by substantial private investments, strategic mergers, and government-backed funding initiatives. Findings highlight the continued expansion of fiber networks into rural areas, previously underserved communities, and even locations with competitive fiber providers, with 7.8% of U.S. locations now served by multiple networks. Major industry players, such as AT&T and Verizon, have committed to aggressive deployment goals, while smaller operators, municipalities, and cooperatives are also playing a pivotal role in increasing fiber accessibility nationwide.

 

What is covered in this study: 

  • Fiber Year in Review:
    • Growth of fiber serviceability in U.S. households.
    • Private capital investments in fiber deployment.
    • High-profile mergers and acquisitions in the fiber industry.
    • Expansion of fiber availability and competition among providers.
    • Rural fiber deployment and its progress.
    • Major telecom providers’ fiber rollout targets and progress.
    • Updates on the Broadband Equity, Access, and Deployment (BEAD) program.
  • Fiber Deployment Costs:
    • Cost comparison between underground and aerial fiber deployment.
    • Breakdown of labor vs. material costs in fiber deployment.
    • Cost variations based on construction techniques (e.g., trenching, plowing, boring).
    • Impact of terrain type on fiber deployment costs.
    • Effect of pole ownership on aerial deployment costs.
    • Regional cost differences in fiber deployment across the U.S.
    • The role of make-ready costs, permitting, and engineering in overall project costs.
    • Customer connection costs and cost differences between aerial and underground last-mile drops.
  • Cost Trends:
    • Year-over-year changes in fiber deployment costs.
    • Factors driving cost increases, including labor, materials, and permitting.
    • Predicted cost trends for 2025 and beyond.
    • The impact of the BEAD program and other market factors on fiber deployment costs.

 

The research revealed that deployment costs have risen in 2024, largely due to increased labor and material expenses. Underground deployment remains notably more expensive than aerial, influenced by factors such as terrain, construction techniques, and ownership of poles. Labor costs, which make up the largest portion of expenses, are particularly high for underground builds and vary based on whether internal or outsourced teams are used. Respondents also highlighted the significant impact of permitting delays and make-ready costs on project timelines and budgets. Looking ahead, while deployment costs are expected to continue rising in 2025, the rate of increase will likely moderate. Despite these challenges, momentum behind fiber deployment remains strong.