As broadband providers worked to connect communities to broadband networks, U.S.-based service providers invested $94.7 billion in U.S. communications infrastructure in 2023.

According to a new US Telecom report, the annual figure represents the second-highest industry capex in 22 years, more than 23% above the historic yearly average.

USTelecom said the 2023 expenditures build on decades of investment in networks and connectivity infrastructure, totaling nearly $2.2 trillion since 1996.

Investment this past year reflects a range of actions taken by major providers, including fiber deployment expansions, integration of fiber and mobile networks, increased rural broadband construction, and network capacity additions to keep pace with advances in artificial intelligence and other applications that are fueling rising bandwidth demands among consumers and across the economy.

An intensely competitive marketplace drove the new investments, and strong consumer demand spurred 2023’s near-record investment.

The industry group noted that recent investment is made even more noteworthy because it occurs at the same time broadband prices continue to lag overall inflation, making high-speed broadband among the most cost-effective consumer services.

While smaller competitive fiber and wireless providers and electric cooperatives are clearly stepping up into the broadband game, USTelecom’s report focused on the significant Tier 1 wireline, wireless, and cable providers to approximate an industry aggregate. The industry group estimates these emerging providers’ capex contributions are at least $2 billion.

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