The Fiber Broadband Association (FBA) says that U.S. deployments of fiber to the home (FTTH) networks jumped 12% in 2021 and could be poised for continued strong growth – if a few service provider concerns don’t intrude. The association made the statements as it announced the results of its 2021 Fiber Provider Study.
The number of U.S. homes with access to FTTH network infrastructure exceeded 60.5 million in 2021 according to the study, conducted RVA LLC Market Research & Consulting. With the tide of government funding expected to continue rising as programs contained within the recently passed Infrastructure Bill begin operation, the FBA expects what it calls “the largest investment cycle ever” to further spur FTTH deployments. In fact, if all federal infrastructure funding targeted fiber deployments, the U.S. could see more fiber deployed in the next five years than in all previous years to-date, the study suggests.
While such funding exclusivity likely won’t happen, FTTH deployments should quicken. And there’s plenty of opportunity; the 65 million homes figure represents only 43% of U.S. households, the study points out. (FTTH is more ubiquitous in Canada, reaching approximately 60% of homes, the study reveals.)
So far, service providers large and small have made a commitment to fiber, the study states. AT&T, Verizon, Lumen, and the five largest cable MSOs account for72% of FTTH infrastructure, with Tier 2 providers representing another 10% of the total. Meanwhile, Tier 3 and smaller organizations have embraced FTTH with both arms; they account for 17% to 18% of the build in what an FBA press release described as “unique to the U.S.” phenomenon.
Potential party poopers
While FTTH momentum should continue to build in North America, there are a few factors that could limit the velocity of this growth. One concern is how much of the funding river will be redirected to alternative approaches such as low earth orbit satellite and fixed wireless access networks. (The FBA has taken steps to ensure fiber gets its fair share; see “Fiber Broadband Association, NTCA team to deliver Broadband Infrastructure Playbook to states”). Even greater is the threat of supply chain and labor shortages, which RVA’s research revealed is of particular concern to mid-size and small providers who may not have the clout necessary to lock in fiber cabling and other necessary technology that Tier 1 operators enjoy (see, for example, “AT&T locks down fiber supply from Corning”).
Despite such concerns, the FBA believes the U.S. overall is heading in the right direction. “It is through research like the Fiber Provider Study that we’re able to educate the industry on the benefits of fiber and the positive impact fiber can have on local communities. When every community can leverage fiber optics for its critical infrastructure, we’ll open endless possibilities for prosperity,” commented Gary Bolton, president and CEO of the FBA. “The private sector is increasing its understanding of the importance of fiber and government efforts to close the digital divide have never been greater. This momentum is exciting and sets the stage for our industry to finally deliver digital equity to everyone regardless of where they live, work, or play.”
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