Fiber broadband deployment costs stabilizing, report finds

(UI) — The Fiber Broadband Association’s latest Fiber Deployment Cost Annual Report, conducted by Cartesian, shows that broadband service providers expect fiber deployment costs to remain steady or rise slightly—less than 10%—compared to 2024. This marks an improvement from the previous year’s study, which reported steeper cost increases.

While the median cost for underground fiber deployment rose 12% year-over-year, aerial fiber deployment costs remained largely unchanged, according to the report. The findings provide insights into cost trends shaping broadband expansion and inform policymakers and industry leaders navigating broadband infrastructure investments.

“Fiber remains the leading preference by states for telecommunications investments across the country due to its reliability, low latency, and scalability,” said Deborah Kish, vice president of research and workforce development at the Fiber Broadband Association. “Studying the cost of fiber deployment over time is critical to our understanding of the value of our investments in broadband. This cost report serves as a benchmark for the industry and for policymakers to chart an affordable path to deploying reliable, long-lasting fiber networks that reach the greatest number of Americans.”

The report attributes rising fiber deployment costs in 2024 primarily to increasing labor and material expenses, with labor accounting for 60–80% of total deployment costs. Construction techniques also played a key role in cost variations. For underground deployment, plowing was the most cost-effective method, while trenching was the most expensive. For aerial fiber builds, Strand and Lash and ADSS cabling methods had similar costs.

“New federal and state funding, such as Texas’ $700 million BOOT program, will start to flow through to providers this year, and more rural areas will gain access to fiber,” said Michael Dargue, vice president at Cartesian. “Together with investment from private capital, we expect 2025 to be another record deployment year for fiber despite rising costs across the broadband industry.”

The Fiber Broadband Association will present a deeper analysis of the report in a webinar on Feb. 6, 2025. Registration details are available [here]. Subscribers can also stay updated on research and industry news through the Fiber Forward Weekly newsletter.

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