RVA Predicts More Five-Year U.S. Investment in Fiber Than All Previous Years Combined

Five-year U.S. capital investment in fiber-to-the-home (FTTH) will surpass $125 billion by 2026. 

  • RVA

Tulsa, Oklahoma--In its just released report “2022-2026 North American Fiber Broadband Report: FTTH and 5G Review And Forecast” RVA LLC estimates the five-year U.S. capital investment in fiber-to-the-home (FTTH) will exceed all investment in FTTH to date and will surpass $125 Billion in the period - barring significant unforeseen economic or geopolitical disruption. Likewise, the number of new route miles of fiber installed for any purpose (fiber-to-the-premise, deep fiber for cable MSOs, middle and long-haul fiber, wireless backhaul, private networks, etc.) is also expected to rival all fiber route miles installed to date. Strong fiber deployment is expected to continue well into the 2030s.

Canada and the Caribbean are also expected to have continued strong growth.

There are several drivers for the unprecedented build cycle highlighted in the report. Based on RVA LLC market research for the Fiber Broadband Association, the market has spoken, in every sense, in support of end-to-end fiber versus all other Internet delivery methods.

RVA performance analysis is based on recall, opinions, and direct speed and latency tests conducted during its national annual random Internet consumer study. The report confirms FTTH has the highest bandwidths (particularly on the upload side), the lowest latency, and the highest reliability. The data also shows that consumers respond to and churn towards fiber providers when fiber is available.

Likewise, most service providers have realized that fiber increases customer loyalty and revenue and significantly decreases operational costs (given better reliability from fewer powered components in the network). Financial and investment institutions now appreciate fiber, and have quantified significant valuation differences for homes passed with fiber versus other methods. Government has recognized the strategic importance of high-quality broadband and has allocated significant broadband funding (most often dedicated to fiber) for educational and disadvantaged needs, and for low density rural areas.  

The forecast report examines the consumer and competitive FTTH drivers, and details the history and forecast for many different classifications of FTTH providers. Possible deployment constraining factors in the forecast period are also reviewed. In addition, the report includes a forecast for the use of fiber for 5G and other purposes.

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