We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Fiber Deployment Cost Landscape 2023 & Industry Implications
Read MoreHide Full Article
The Fiber Broadband Association recently unveiled the findings of its 2023 Fiber Deployment Cost Study, conducted by Cartesian. This study serves as a pivotal benchmark for fiber broadband service providers, offering insights into cost profiles and areas of inefficiency. The implications of this study extend beyond statistical figures, providing a roadmap for industry participants navigating the complex terrain of fiber deployment.
Labor: A Dominant Cost Factor
The study underscores the significant role of labor in deployment costs, contributing to 73% of underground build costs and 67% of aerial costs. Understanding these proportions is crucial for broadband providers seeking to optimize their cost structures, especially when leveraging public and private funding to connect communities.
Regional Variations and Deployment Methods
The study not only highlights labor costs but also unveils regional variations and cost differentials between deployment methods. These nuances are essential for industry players to tailor their strategies based on geographical considerations and the most efficient deployment methods.
Key Findings and Common Themes
The survey, spanning diverse industry participants, revealed common themes that will be explored in an upcoming webinar. Labor emerges as a consistent factor, accounting for more than two-thirds of build costs. The initial cost disparity between aerial and underground deployment is notable, but the study suggests that higher operational expenditures of aerial deployment balance this out in the long run.
2024 Outlook
In 2024, respondents anticipate an overall increase in deployment costs. However, several categories are expected to show improvement. While 76% of respondents noted material cost increases in 2023, only 58% anticipate the same for 2024. Additionally, a majority expects engineering and permit costs to decrease in the coming year, signaling potential efficiency gains.
The Road Ahead
As the industry grapples with the dynamics of fiber deployment, the insights from the 2023 Fiber Deployment Cost Study provide a valuable compass. Industry participants like AT&T Inc. (T - Free Report) , Verizon Communications Inc. (VZ - Free Report) and T-Mobile US Inc. (TMUS - Free Report) are likely to use this information to refine their cost management strategies, optimize deployment methods and make informed decisions in a landscape where reliable broadband connectivity is a paramount goal. The findings particularly gain significance as the industry players are increasingly focusing on fiber densification for a more connected future.
Fiber networks are essential for the growing deployment of small cells that bring the network closer to the user and supplement macro networks to provide extensive coverage. Telecom service providers are increasingly leaning toward fiber optic cable to meet the burgeoning demand for cloud-based business data and video streaming services by individuals.
Moreover, the fiber-optic cable network is vital for backhaul and last-mile local loop, which are required by wireless service providers to deploy the 5G network. The companies are expanding their fiber optic networks to support 4G LTE and 5G wireless standards as well as wireline connections.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Fiber Deployment Cost Landscape 2023 & Industry Implications
The Fiber Broadband Association recently unveiled the findings of its 2023 Fiber Deployment Cost Study, conducted by Cartesian. This study serves as a pivotal benchmark for fiber broadband service providers, offering insights into cost profiles and areas of inefficiency. The implications of this study extend beyond statistical figures, providing a roadmap for industry participants navigating the complex terrain of fiber deployment.
Labor: A Dominant Cost Factor
The study underscores the significant role of labor in deployment costs, contributing to 73% of underground build costs and 67% of aerial costs. Understanding these proportions is crucial for broadband providers seeking to optimize their cost structures, especially when leveraging public and private funding to connect communities.
Regional Variations and Deployment Methods
The study not only highlights labor costs but also unveils regional variations and cost differentials between deployment methods. These nuances are essential for industry players to tailor their strategies based on geographical considerations and the most efficient deployment methods.
Key Findings and Common Themes
The survey, spanning diverse industry participants, revealed common themes that will be explored in an upcoming webinar. Labor emerges as a consistent factor, accounting for more than two-thirds of build costs. The initial cost disparity between aerial and underground deployment is notable, but the study suggests that higher operational expenditures of aerial deployment balance this out in the long run.
2024 Outlook
In 2024, respondents anticipate an overall increase in deployment costs. However, several categories are expected to show improvement. While 76% of respondents noted material cost increases in 2023, only 58% anticipate the same for 2024. Additionally, a majority expects engineering and permit costs to decrease in the coming year, signaling potential efficiency gains.
The Road Ahead
As the industry grapples with the dynamics of fiber deployment, the insights from the 2023 Fiber Deployment Cost Study provide a valuable compass. Industry participants like AT&T Inc. (T - Free Report) , Verizon Communications Inc. (VZ - Free Report) and T-Mobile US Inc. (TMUS - Free Report) are likely to use this information to refine their cost management strategies, optimize deployment methods and make informed decisions in a landscape where reliable broadband connectivity is a paramount goal. The findings particularly gain significance as the industry players are increasingly focusing on fiber densification for a more connected future.
Fiber networks are essential for the growing deployment of small cells that bring the network closer to the user and supplement macro networks to provide extensive coverage. Telecom service providers are increasingly leaning toward fiber optic cable to meet the burgeoning demand for cloud-based business data and video streaming services by individuals.
Moreover, the fiber-optic cable network is vital for backhaul and last-mile local loop, which are required by wireless service providers to deploy the 5G network. The companies are expanding their fiber optic networks to support 4G LTE and 5G wireless standards as well as wireline connections.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.