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Broadband Bytes, February 2025 Issue 2

This edition of Broadband Bytes includes: More RDOF Defaults, Bill to Address Permitting Delays, White House Tightens Grip on FCC, More State Low Cost Broadband Mandates?, BEAD Can Cover “All” of VT, TIA Calls for Tax Exemptions on BEAD Grants, ACP Study: Benefits Exceed Costs, Senate to Overturn FCC WiFi Hotspot Rule? Funding, Network Expansions, M&A:  Twelve MS BEAM Projects, Lumos Expands Into FL, Brightspeed IN Fiber Expansion, Lightpath Fiber Phoenix AI Initiative, $300B in M&A Available?, TDS Fiber Plans and Sparklight Fiber Expansion TX.1. RDOF Defaults Keep Coming; “Penny Wise, Pound Foolish.” Approximately two years ago, over a third of the $9.2 billion in winning bids in the RDOF program were rejected after the FCC reviewed winning bidders’ long-form applications. And the tally of RDOF defaults is not yet complete. A report from the Benton Institute for Broadband & Society found that bids associated with nearly $112.8 million in additional RDOF funding are in default. The additional defaults represent nearly 1.9 million locations that had been expected to receive service. Read more2. Lawmakers Renew Bill to Address Permitting Delays on Federal Lands. House lawmakers reintroduced bipartisan legislation Thursday to address a significant barrier delaying broadband expansion: permitting delays on federal lands. The Federal Broadband Deployment Tracking Act, revived by Reps. August Pfluger, R-Texas, and Darren Soto, D-Fla., would require the NTIA to submit a plan to Congress within 180 days outlining how it will track and expedite broadband permitting applications on public and National Forest System lands. Read more3. Trump Order Aims to Tighten White House Grip on FCC, Other Agencies. “So-called independent agencies like the Federal Trade Commission (FTC), Federal Communications Commission (FCC), and Securities and Exchange Commission (SEC) have exercised enormous power over the American people without Presidential oversight,” the White house said. Under the executive order, the FCC is required to submit “draft regulations for White House review—with no carve-out for so-called independent agencies, except for the monetary policy functions of the Federal Reserve; and consult with the White House on their priorities and strategic plans, and the White House will set their performance standards.” Read more4. More States Considering Low Broadband Prices. Now that New York’s Affordable Broadband Act has gone into effect, other states are looking to mandate low broadband rates for low-income households. The New York law went into effect when the U.S. Supreme Court refused to hear an appeal of the case.  Twenty-two states filed a brief in support of New York when the issue was being considered by the Supreme Court. The petition supported the concept that States have the right to set broadband rates when the FCC and the federal government decide not to do so. Read more.5. BEAD Can “Nearly Complete” Vermont Broadband Buildout. Preliminary applications from Vermont broadband service providers (BSPs) for funding by the BEAD Program could serve virtually every eligible address in the state, according to the Vermont Community Broadband Board (VCBB). VT-BEAD said that eligible locations receive 100 Mbps download and 20 Mbps upload or slower speeds. All of these areas got at least one preliminary application. 95% of the preliminary applications involved fiber. In all, nine BSPs submitted preliminary applications. Read more6. TIA Calls for Tax Exemption for BEAD Grants. The Telecommunications Industry Association urged the Trump Administration to work with Congress to exclude certain broadband grants from federal corporate income taxes in a letter congratulating Howard Lutnick on his Senate confirmation as Secretary of Commerce. Broadband grants are currently subject to the 21% federal corporate income tax, which some experts have argued dissuades ISPs from participating. Read more7. Resurrecting ACP Would Have Significant Benefits. Reinstating the Affordable Connectivity Program (ACP) could have significant benefits in several areas, according to a study by The Brattle Group. The study says that healthcare savings alone would quadruple the annual cost of the ACP program, which the study pegs at $7.3 billion. In addition to healthcare, significant benefits would be gained in education and the labor market. The program connected more than 23 million households to the Internet before ending due to lack of funding last May. Read more8. Thune: Expect Senate Resolution Overturning FCC’s Wi-Fi Hotspot Rules. Senate Majority Leader John Thune plans for the chamber to vote next week on a resolution repealing a Biden-era program expanding internet access for students. Sen. Ted Cruz, R-Texas, introduced the Congressional Review Act resolution in late January, along with 12 other Senate Republicans, to nullify the June 2024 order passed under former FCC Chairwoman Jessica Rosenworcel. The order allowed schools and libraries to use E-Rate funds to lend Wi-Fi hotspots for off-campus use. Read moreFUNDING AWARDS, FIBER EXPANSIONS1. Funding Approved for Twelve Mississippi Broadband Projects. Mississippi’s Office of Broadband Expansion and Accessibility of Mississippi (BEAM) recently gave the go-ahead for a dozen broadband infrastructure projects, with the projected $32.5 million cost to be funded by the U.S. Treasury Department’s Capital Projects Fund (CPF). Among the awardees are TEC, CSpire and Swyft Fiber, Bruce Telephone, TVI Fiber and WeConnect Communications. Read more2. Lumos Announces Entrance Into Florida Market. More than 30 communities will gain access to a new network to be constructed by Lumos in Florida. When construction is complete, over 500,000 homes and businesses will be passed by the network, and it will involve over 7,500 miles of fiber. The announcement is the latest in a string of expansions to new markets by Lumos. Recently, the ISP has also announced expansions into marketplaces in Alabama and Illinois. Read more3. Brightspeed, a North Carolina-based ISP, is Ready to Connect 60,000 Locations Across 30 Communities in Indiana. Over 60,000 locations across Indiana are due to be connected to Brightspeed’s fiber-optic network. The work is continuing throughout 30 communities in the state, with new locations coming online daily. In total, Brightspeed hopes to reach approximately 126,000 families in Indiana once construction is completed. Read more4. Lightpath Brings “AI-Grade Fiber” to Phoenix, Arizona. Lightpath is bringing its fiber connectivity to the Phoenix, AZ market with a planned 230-mile route in the region, which the company says will be anchored by hyperscale customers. The build-out is designed to meet the area’s needs, with hyperscalers planning for AI-related initiatives. Data centers will be the predominant customers of the Lightpath buildout in Phoenix, with eight carrier hotels and data centers to be connected during the initial buildout and more than 30 other data centers near the planned routes. Read more5. $300B in Private Equity Available for Investment: Deloitte Telecom M&A Report. Private buyers were involved in more than 80% of global telecom M&A deals in the first half of 2024, up from just over 60% in 2021, according to Deloitte. Globally, the value of PE-backed telecom deals was $28 billion in 2021 and $20 billion in 2022. Rising interest rates caused a slowdown in the second half of 2023 and the first half of 2024. But Deloitte saw a rebound in the second half of 2024, when the value of PE-backed telecom deals was $11 billion. Read more6. TDS Telecom Updates Long-Term Fiber Plans. TDS Telecommunications LLC (TDS®) released its updated fiber program goals during its fourth-quarter earnings report. The telecommunications company is now targeting 1.8 million marketable fiber service addresses, which is a 50% increase from the company’s previous long-term goal. TDS ended the year with 928,000 total fiber service addresses. Read more7. Sparklight Brings Fiber Internet to White Oak, Texas. Sparklight, a broadband communications provider, is bringing next-generation connectivity to White Oak, TX, with the construction of a new fiber-optic network. Construction on the fiber network began in August 2024 and is expected to be completed by late 2025.   Once finished, the network will connect more than 2,500 White Oak homes and businesses. Read more    Broadband Bytes is a regular feature by David Levine of UCL Swift. David is a graduate of Northern Illinois University, a certified BICSI RCDD,and a 35-year industry veteran in fiber and copper solutions.He currently works as a Business Development Manager for UCL Swift.

Mar 14, 2025

General

Broadband Bytes, February 2025 Issue 1

This edition of Broadband Bytes includes: Arielle Roth named to head NTIA, Lutnick advances through Committee vote for Commerce, FBA Fiber Survey results, Fiber deployment cost slowdown? Red states and satellites, Red states caution on pause in BEAD, SCOTUS USF hearing March 26. Funding, Network Expansions, M&A: AI drives fiber plans for Zayo, Dobson Fiber expands in OK, Gateway Fiber and WANRack to merge, Glo Fiber Lancaster OH, Lumos Fiber Birmingham, AL, Metronet Elwood, IN, AFN completes AL Middle Mile and 360 Broadband $52M Grant TX.1. Arielle Roth, Policy Director for U.S. Senate Committee on Commerce, Selected to Lead NTIA. Arielle Roth was nominated by President Donald Trump to lead the NTIA. Part of the U.S. Department of Commerce, NTIA oversees the $42 billion BEAD Program.  Roth currently serves as Policy Director for the U.S. Senate Committee on Commerce, Science and Transportation. She also has served in various roles at the FCC and as a Legal Fellow with the Hudson Institute’s Center for the Economics of the Internet, where she concentrated on federal telecommunications law and policy. Read more.2. Senate Committee Votes to Advance Commerce Nominee Howard Lutnick, Where Commerce Committee Chairman Ted Cruz Says He is “Certain There Will Be” Changes to BEAD. The Senate Commerce Committee voted 16-12 on Wednesday to advance Howard Lutnick’s nomination for Secretary of Commerce. If confirmed by the full Senate, Lutnick, CEO of Cantor Fitzgerald, will lead the agency responsible for key tech and telecom programs, including the $42.5 billion BEAD Program. Read more3. The Fiber Broadband Association Announced the Results of a Fiber Deployment Survey From RVA LLC Market Research & Consulting in January 2025. The survey was for the year ending in September 2024. ISPs built fiber to pass 10.3 million homes in the last year, a new all-time high. RVA estimates that fiber now passes 56.5% of U.S. homes. The remaining fiber market is still immense, with almost 149 million homes that don’t have fiber. Read more.4. Fiber Deployment Costs May See Slight Slowdown. Industry experts predict price stabilization with federal broadband funding scheduled to begin. While underground fiber deployment costs surged by 12% in 2024, aerial deployments saw only minor cost increases, and industry experts believe the worst of the inflationary squeeze on fiber projects may be over, according to the 2024 Fiber Deployment Cost Annual Report. The median cost of underground fiber deployment climbed to $18.25 per foot, up from $16.25 per foot in 2023, while aerial fiber deployment remained relatively flat at $6.55 per foot. Labor remained the dominant expense in fiber projects, accounting for 60 to 80% of total deployment costs. Read more.5. Some Red States Don’t Want Too Much Satellite for BEAD. Republican leadership in the Senate has assailed the Commerce Department’s flagship broadband subsidy’s preference for fiber, citing high per-location costs. Yet officials from some red states aren’t sold on shifting the scales too far in one direction.  “We’re hoping the administration’s change is not just ‘Let’s give it all to satellite and then the problem’s over,’” said Misty Ann Giles, head of Montana’s broadband office. “Satellite is fantastic, I know a lot of people that love it in Montana. But have you ever looked at the price tag? Most folks can’t afford it.” Read more6. Some Republican Senators Don’t Want to See a Pause in the BEAD Program. Howard Lutnick, who is on track to become Secretary of Commerce, has supplied some answers to questions from Senators regarding his stance on the BEAD program. The answers show that Lutnick is keeping his cards close to his chest. But perhaps more interesting is the fact that even some Republican Senators expressed concern about slowing down the BEAD program. Read more.7. Supreme Court Will Hear Universal Service Case on March 26. Read more.FUNDING AWARDS, FIBER EXPANSIONS1. Zayo unveiled plans to build 5,000 new route miles in the next five years to support AI and data center activity. Bill Long, Zayo’s chief product officer, told Fierce that in the past, Zayo’s average long-haul order ranged from 8 to 12 fibers. That all changed 12-18 months ago when customers started requesting counts from 144 to 432 fibers. Read more.2. Dobson Fiber has broken ground on network construction in Okmulgee, a community in Oklahoma’s Tusla metro area.  Construction on the network in Okmulgee, which has under 12,000 residents, will be completed in phase. Currently, Dobson Fiber serves nearly 40 communities in Oklahoma and Arkansas. Read more.3. Gateway Fiber and WANRack to merge. Gateway Fiber and WANRack, which both are majority owned by a CBRE Investment Management Fund, are merging. Fiber-to-the-premises developer and operator Gateway Fiber is based in St. Louis. It was founded in 2019 and serves residential and businesses in Massachusetts, Minnesota, and Missouri. WANRack, which was founded in 2013, serves school districts and libraries through an E-Rate program and business and residential customers in eastern Kansas through its KWIKOM subsidiary. The press release says that, together, Gateway Fiber and WANRack will offer a FTTX platform and operate across 25 states. Read more.4. Shentel’s Glo Fiber has begun construction on a network that will reach approximately 10,000 additional locations in Lancaster, Ohio. Glo Fiber was previously known as Horizon Telecom before rebranding last year. The provider was acquired by the Shenandoah Telecommunications Company in 2024. Construction on the network is expected to finish in the second half of 2025. Read more.5. Lumos announces major fiber-internet expansion in Birmingham, AL. Communities in the Birmingham metro area will soon have a new fiber-optic internet provider on the block. The news broke this week when Lumos Fiber, a provider that serves customers across Virginia and the Carolinas, announced plans to lay 1,300 miles of fiber to reach “underserved communities and families throughout the Birmingham Metro.” The ISP announced that construction will begin soon on the network, with engineering work already underway. Read more.6. A private, fully funded multimillion-dollar investment will fuel Metronet’s fiber internet expansion into Elwood, Indiana. Thousands of homes and businesses in the community of Elwood, Indiana will soon gain access to Metronet’s fiber-optic internet network. The expansion effort was fully funded and backed by private investment. According to Metronet, the first customers in Elwood, a city of less than 10,000 residents in Central Indiana, will gain access this spring. Read more.7. Alabama fiber network completes middle-mile construction. This month, AFN can provide service to 60 counties with 3,406 active miles of the network. This phase of the network nearly fulfills the $82.5 million middle-mile grant from the state’s allocation of ARPA funds. The organization also received two additional grants to support the connection of community anchor institutions, further expanding the depth and breadth of the network. Although AFN does not serve end-users per se, the state-of-the-art network provides access points in each county that community anchor institutions, last-mile and wireless providers utilize for connectivity. Read more.8. 360 Broadband wins $52 million grant to connect Fannin County, TX. More than $52.1 million has been awarded to 360 Broadband to help fund a project that will connect thousands of locations across Fannin County, Texas. The money, awarded by the Texas Broadband Development Office’s Bringing Online Opportunities to Texas (BOOT) II Program, will go towards a $65 million project to bring high-speed fiber to 4,355 locations in the county. The project is part of 360 Broadband’s larger effort to provide access to 12,000 locations in Fannin County, located in North Texas along the border with Oklahoma. Read more.    Broadband Bytes is a regular feature by David Levine of UCL Swift. David is a graduate of Northern Illinois University, a certified BICSI RCDD,and a 35-year industry veteran in fiber and copper solutions.He currently works as a Business Development Manager for UCL Swift.

Feb 25, 2025

General

UCL Swift Winter 2024 Quarterly Newsletter

 The UCL Swift Team at our Carrollton, TX, HeadquartersToday, we’re looking back at 2024—a year marked by innovation and progress.This year, UCL SWIFT has continued to drive advancements in enterprise infrastructure with innovative, high-quality fiber optic solutions. The addition of UCL Connections marked a significant expansion in our capabilities, enabling us to deliver American-made cable assemblies and provide more comprehensive solutions to meet growing industry demands.UCL Connections manufactures copper and fiber optic assemblies of unequaled quality and performance. Every unit is tested to ensure reliable performance. Check out their product line card to see the products they can produce for you. Looking for something custom? Let them know! It’s their specialty!From our All-In-One fiber splicing systems to our full range of cables and assemblies, we’ve enhanced our ability to meet a broader range of industry needs—further strengthening our leadership in the fiber optics field.ISE Expo 2024As part of our workforce development efforts, we’ve invested in training programs designed to address the ongoing labor shortage in the fiber optics industry. By preparing the next generation of technicians, we’re ensuring the broadband market has the skilled talent required to grow and innovate. UCL Swift simplifies fiber optic drop cable installation, reducing costs and improving network reliability. We are the only manufacturer of hardened OptiTap®-style connectors that can be fusion spliced in the field using our KF4A-HDC or K33A-HDC splicers. This allows technicians to create exact-length drop cables on-site, cutting waste, minimizing inventory, and avoiding costly callbacks due to bad connections.Field-spliced connectors also enable ISPs and MSOs to use bulk cable, reducing exposure to environmental damage and eliminating issues with coiled cable in vaults. Unlike pre-terminated assemblies, which can have failure rates exceeding 10%, our solution allows quick, easy repairs in the field by simply splicing on a new connetcor. Looking Ahead: What’s Next for 2025?As we look to the future, UCL Swift is excited to continue pushing the boundaries of what’s possible in fiber optics, broadband, and enterprise infrastructure. In 2025, our focus will continue to be on providing customers with the most innovative products and the highest level of customer service available.   As we reflect on another successful year,we want to extend a heartfelt thank you to our dedicated team, partners, and customers.Your continued support and collaboration have been integral to our success,and we look forward to achieving even more incredible things together in 2025 and beyond.If you’re ready to start your next fiber optics project, we invite you to contact UCL Swift and UCL Connections.Together, we can help you deliver smarter, more sustainable enterprise and broadband solutions for the future.

Feb 25, 2025

General

Broadband Bytes, January 2025 Issue 2

This edition includes: Spectrum Auction to fund Rip and Replace, Broadband around the globe, Editorial on BEAD spending in 2025, BEAD Final Proposal approvals, Carr now in charge of FCC, FCC ends DEI directives, Hawaii full fiber access by 2026?, BEAD spending safe in Trump executive order, ATT and NY low-cost service law, Telecom policy focus and questions in Trump’s first days.It also reviews Funding Awards and Network Expansions, including Allo $65M Flagstaff AZ, Lyte Fiber $11M+ Kingsville TX, $18M grants for Tribal Lands, Visionary Broadband acquires Mountain Broadband in CO, $32M last mile service grants CA, 123NET $11M investment in MI, Conexon-Georgia Co-Op new fiber network, Zayo to add 5,000 miles long haul fiber and TX BOOT Round 1 and 2 Funding.1. Spectrum auction to fund “rip and replace” program. The FCC is pushing ahead with plans for a new spectrum auction to help pay for the removal and replacement of Chinese telecom equipment from U.S. networks. The Rip and Replace program, established in 2019, is an initiative by the FCC designed to help secure the U.S. telco infrastructure by removing and replacing high-risk network equipment made by Chinese companies, particularly Huawei and ZTE. The project was initially allocated $1.9 billion in public funding to support smaller operators to replace their equipment; however, demand for the funds far outstripped the budget. Following years of pressure from the FCC, late last month the U.S. Senate approved a bill allocating the required funding to the rip and replace initiative. The bill allows the FCC to borrow the required funding from the Treasury on the proviso that the funds are repaid with profits from upcoming spectrum auctions. Read more.2. The state of broadband around the globe: what you need to know. Most know the U.S. is trying to close its digital divide with the $42.5 billion BEAD program. But what about the rest of the world? Plenty of other countries have their own government-led broadband efforts, some of which were established years before BEAD surfaced. Fierce Networks looked into how some of these countries are implementing broadband. Read more.3. BEAD spending in 2025. Will BEAD spending and construction flow in 2025? This editorial provides points to consider. Read more.4. More states get NTIA BEAD Final Proposal Approval. Read more.- Delaware’s final proposal details how it plans to use the more than $107 million in allocated BEAD funding to connect 5,721 homes and businesses. The approval of Delaware’s final proposal for BEAD follows the approval of Louisiana’s final proposal.   - Louisiana was allotted $1.355 billion in BEAD funding but will use some of it for purposes other than deployments like education and workforce development.- Nevada’s final proposal details how it plans to use the more than $416 million in allocated BEAD funding to connect 43,715 homes and businesses.- Michigan ($1.5B) and Maine ($272M), are now accepting applications for BEAD funding.- Colorado plans to begin accepting applications for the state’s second round of BEAD funding on January 27.              5. Brendan Carr is now officially in charge at the FCC. Deregulation is expected on the telecom front, but Carr must also contend with state efforts to regulate broadband. Carr and telecom trade groups were pleased to hear that the Sixth Circuit Court of Appeals effectively killed the FCC’s efforts to restore net neutrality and classify broadband providers as Title II carriers. However, the downside to not being classified as Title II carriers is that the FCC now has very little regulatory authority over broadband providers. So, states are free to regulate broadband providers how they see fit, and the FCC doesn’t appear to have any authority to preempt states. Read more.6. The newly named chair of the FCC, Brendan Carr, has taken action to end the commission’s “promotion of DEI.” Brendan Carr, the chairman of the FCC, has taken action to end the FCC’s diversity, equity, and inclusion (DEI) directives following an executive order issued by President Donald Trump. Read more.7. Hawaiian Telcom pledges full fiber access by end of 2026. Hawaiian Telcom is collaborating with federal, state, and county leaders on a $1.7 billion initiative to position Hawaii as the first fully fiber-enabled state in the U.S. by 2026. Read more.8. BEAD spending safe from energy executive order, White House Says (1/22/2025). The White House issued a memo clarifying that a call to pause Infrastructure Act funding applied only to energy projects. The Trump administration clarified that an executive order directing agencies to pause Inflation Reduction and Infrastructure Act funding applies only to certain energy projects, dispelling some fears of broadband deployment efforts being caught in a political crossfire. Read more.9. ISPs react to $15 rates in New York. AT&T announced that it will withdraw its 5G home Internet product in New York rather than comply with the law that requires it to offer broadband rates as low as $15.  It’s hard to think that New York regulators won’t quickly react to AT&T walking away from existing FWA customers. This decision might ultimately cost the company more in fines than what it would lose from customer discounts. Read more.10. Telecom policy objectives come into focus in Trump’s first days. A spate of recent changes has brought several telecom policy objectives of Donald Trump’s administration into focus, but questions remain. Read more.FUNDING AWARDS, FIBER EXPANSIONS1. Construction on a $65 million fiber network in Flagstaff, Arizona is due to begin this March, according to ALLO Fiber. The Nebraska-based ISP announced the news in December, along with news of their planned fiber build in Boulder, Colorado. Read more.2. Lyte Fiber to launch fiber network in Kingsville, Texas. Lyte Fiber announced a new investment in Kingsville, Texas, introducing its fiber network to homes and businesses. Lyte, a Texas-based and founded company, is investing more than $11 million into the network buildout. Lyte will connect nearly 7,500 locations, with plans for further market expansion. Lyte is set to install over 100 miles of fiber optic cable across Kingsville. Read more.3. NTIA announces almost $18M in broadband grants for Tribal Lands. The NTIA announced it has awarded nearly $18 million to seven Tribal entities to expand high-speed Internet access and adoption. The funding from the nearly $3 billion Tribal Broadband Connectivity Program is part of the Biden-Harris Administration’s Internet for All Initiative. Read more.4. Mississippi Power Association undertakes fiber network expansion. The fiber subsidiary of the Alcorn County Electric Power Association has expanded their network in New Albany, MS. ACE Fiber, the Alcorn County Electric Power Association’s subsidiary, claims the development will enhance the user experience for residents. Read more.5. Visionary Broadband acquires Mountain Broadband in CO. Mountain Broadband will rebrand as Visionary Broadband, the acquired company’s “team” will be retained, and the new owners will begin the rollout of gigabit services in the Mountain Broadband footprint and move into surrounding areas in the coming months. Read more.6. California PUC announces more than $32M in broadband grants. $25 million of the funding will go to Federal Funding Account grants to provide last-mile services in Kings County and benefit approximately 5,869 residents. Another $3 million is for a project in Ventura County. It will benefit 2,377 residents.  The organizations benefiting from the grants are the California Emerging Technology Fund, the Economic Opportunities Commission, International Rescue Committee – Oakland, the Rural Prosperity Center, Swords to Plowshares, and United Way of Central Eastern California. Read more.7. Investment of $11 million backs long-haul fiber route in Michigan. 123NET, a Michigan connectivity provider has announced plans to build a redundant, long-haul fiber route from Grand Rapids to Lansing. In addition to other projects, 123NET is also responsible for a fiber network from downtown Kalamazoo and the launching of the Grand Rapids Internet Exchange. Read more.8. Conexon adds 8,400 Georgia cooperative customers to its footprint. The now-completed network has over 1,600 miles of fiber and connects all 8,400 members of Ocilla-based Irwin EMC. The cooperative’s members stretch across eight counties. Read more.9. Zayo announces construction of 5,000+ fiber miles to help meet AI workload demands. To ensure customers can scale alongside AI demand, Zayo plans to build five new long-haul routes, in addition to overbuilds of seven key existing routes, over the next five years. Read more.10. Texas broadband grants aim to give the digital divide the BOOT. The Bringing Online Opportunities to Texas (BOOT II) Program has awarded $701.9 million in grants to help provide broadband to unserved and underserved locations in the state. More than $424.6 million of the $701.9 million Texas broadband grants have been finalized. This covers 54,000 locations in Bastrop, Carson, Coleman, Edwards, Falls, Irion, Karnes, Liberty, Morris, Newton, Reagan, Throckmorton, and Trinity counties. The Texas Broadband Development Office says it is finalizing the other nine counties which, combined, will serve almost 39,000 unserved locations. Read more.    Broadband Bytes is a regular feature by David Levine of UCL Swift. David is a graduate of Northern Illinois University, a certified BICSI RCDD,and a 35-year industry veteran in fiber and copper solutions.He currently works as a Business Development Manager for UCL Swift.

Feb 25, 2025

General

Broadband Bytes, January 2025 Issue 1

This initial 2025 edition includes: Record year in 2024 fiber deployments, USF and its future in the new Trump administration, net neutrality, Loper/Chevron Doctrine ruling, AI and fiber demand, NTIA guidance on alternative broadband for BEAD, expected BEAD performance measurement rules, 2024 M&A highlights, IQ Fiber acquires ThinkBig Networks MD, Dobson Fiber expands in OK, Surf Internet fiber expansion in IN, Allo Fiber’s new Boulder CO fiber network, Ubiquity finances fiber expansion and more BEAD applications open: NM, NY, AR, AZ.1. The U.S. fiber industry set another record in 2024, marketing fiber to 10.3 million new homes, up from 9.1 million new homes marketed to in 2023 (+13%), according to data compiled by Michael Render, CEO at RVA LLC. Fiber broadband is now marketed to 76.5 million U.S. homes, and if you include homes with more than one fiber passing, there are now 88.1 million FTTH passings in the U.S. According to the research, fiber now passes 56.5% of U.S. households and 18% of second homes. Compared to the 88.1 million homes currently passed, there are still 149 million passings to go. Read more2. USF and the new administration. Editorial on the potential future status of the USF under the new Trump Administration. Read more​.3. US court blocks reinstatement of net neutrality. A U.S. appeals court struck a major blow to the Biden administration’s aspirations of restoring net neutrality, ruling that the FCC does not have the power to enforce such regulations. Net neutrality is the concept that all internet users and internet traffic should be treated equally by service providers. This paradigm means providers may not block, slow down, or charge different rates for specific online content. Championed by the Democrats for over a decade and formally introduced as a ruleset by the Obama administration, net neutrality was then rescinded in 2018 during the Trump presidency. Joe Biden made the reinstatement of net neutrality a focal point of his election campaign, issuing an executive order encouraging the FCC to reinstate the rules in 2021. Now, following this new ruling, it seems that net neutrality’s return is unlikely. Read more.4. Loper Bright and Chevron Doctrine, a court ruling that changes how D.C. operates. A Supreme Court decision this year redefined the balance of power between federal agencies and the courts—curbing the power of regulators like the FCC and the NTIA to interpret ambiguous statutes. The ruling in Loper Bright Enterprises v. Raimondo, issued in June, was expected to unleash a wave of legal challenges to FCC and NTIA policies that lack explicit Congressional backing, reshaping the landscape of telecommunications and broadband regulation. Read more​.5. If 2024 is an indicator, AI will be huge for fiber in 2025. There were several big news announcements in 2024 about AI driving demand for fiber broadband. The biggest news item was Lumen’s win of a fiber broadband contract with Microsoft. Dave Ward, Lumen’s CTO, said the demand for fiber was creating “the largest expansion of the internet in our lifetime.” Another telling sign that AI is infusing life into the fiber broadband ecosystem was when Nokia’s CEO Pekka Lundmark said in October that telco is no longer the top growth market for the Finnish vendor. Instead, the company has turned its focus for growth to data centers. Read more.6. Final guidance for BEAD funding of alternative broadband technology. NTIA released guidance to clarify how states can use broadband funding to deploy technologies like Low Earth Orbit (LEO) satellites and unlicensed fixed wireless. The final Alternative Broadband Technology Policy Notice provides states and territories with additional guidance on issuing subgrants to these alternative technology providers. This notice gives states and territories additional flexibility and simplified processes for determining where Alternative Technologies can be funded, all while ensuring that states and territories may select the most robust technology for each BEAD-funded location, including those locations in the most remote and difficult-to-reach areas. The final guidance and copies of the 138 comments received by NTIA can be found here. Read more​.7. NTIA proposes BEAD performance measurement rules. One of the many requirements for BEAD winners will be to regularly report customer speeds after networks are built. NTIA recently issued a draft of the measurement requirements and the final rules should be similar. Highlights of the measuring requirements can be found here.8. Sizing up the top 2024 M&A deals. Service providers and vendors alike continued to make acquisitions and mergers in 2024 to scale their businesses and fill in product gaps. Follows is a link that highlights the top M&A stories of 2024. Read more.9. Jacksonville Florida-based ISP IQ Fiber has completed their acquisition of a Maryland-based fiber provider ThinkBig Networks. IQ Fiber’s planned acquisition of ThinkBig Networks has been completed. The acquisition was backed by SDC Capital Partners. The completed acquisition will add four Maryland counties to IQ Fiber’s footprint: Charles, Kent, Queen Anne’s and Harford. Read more.FUNDING AWARDS, FIBER EXPANSIONS1. Dobson Fiber, an Oklahoma-based ISP, has broken ground on a multimillion-dollar fiber network expansion project in Broken Arrow, Oklahoma. Dobson Fiber operates a network that spans 38 communities in Oklahoma. In addition to those communities, they also serve less than half a dozen communities in Arkansas. Read more.2. Surf Internet has embarked on a $5.5 million fiber network expansion project in Peru, a north-central Indiana community. In total, Surf expects to reach 4,275 residential and commercial properties in Peru. The project is backed by an investment of over $5.5 million. During the project, Surf says they are working in tandem with Miami-Cass REMC and their subsidiary, Broadway Broadband. Miami-Cass REMC, described on its website as a not-for-profit, consumer-member-owned utility, will assist Surf with its “local expertise and fiber network resources.” Read more.3. ALLO Fiber to begin network construction in Boulder, CO. Construction is slated to begin in the spring of 2025. Once construction is completed, Boulder will become one of more than 50 communities ALLO Fiber serves across Nebraska, Colorado, Arizona, Missouri, Iowa and Kansas. Read more.4. Ubiquity secures more than $400M financing for fiber deployments. Ubiquity, a digital communications infrastructure owner, operator and developer has successfully secured $420 million in green construction financing facilities, with proceeds used to expand the deployment of last-mile open-access fiber networks across its core markets in Texas, California, Arizona and Nebraska. Read more.5. New Mexico releases BEAD application timelines and criteria. New Mexico has announced the criteria and deadlines for its $675 million BEAD Program allotment. It has set a February 27 Round One application deadline. The deadline will be followed by a review and curing period (February 24-March 28), negotiation (March 31-May 16) and the provisional announcement of awards (May 19-June 19). Read more.6. New York accepts applications for $664M in BEAD funding. The state of New York has begun accepting applications for $664 million in the BEAD rural broadband funding program. Applications are due February 7. The New York program, known as ConnectALL, is administered by the state agency known as Empire State Development (ESD). Read more. 7. Arkansas opens BEAD application window on January 7. Arkansas, which was awarded $1.024 billion in the BEAD Program, will open and accept Main Round applications from January 7 to January 21. The Arkansas State Broadband Office is administering the process. Arkansas BEAD applications must be submitted to the ARC Connection application portal window. Read more.8. Arizona’s round one BEAD application window open until February 5. Arizona has set January 6 to February 5 as the Round One application window in their BEAD Program deployment process. The state has been allotted $993.1 million in the program. Arizona’s BEAD Program will be administered by the Arizona Commerce Authority (ACA). Read more.    Broadband Bytes is a regular feature by David Levine of UCL Swift. David is a graduate of Northern Illinois University, a certified BICSI RCDD,and a 35-year industry veteran in fiber and copper solutions.He currently works as a Business Development Manager for UCL Swift.

Jan 28, 2025

General

Broadband Bytes, December Issue 1

This edition includes more on the impact of the changing political landscape: BEAD, USF, Rip and Replace, M&A forecast looks strong. States start accepting BEAD Applications despite political rumblings.1. Donald Trump’s selection of Brendan Carr for FCC Commissioner could lead to BEAD changes. Carr said the commission will have to have an important discussion about the future of the BEAD program. Carr posted on “X” that “…the $42 billion program for expanding Internet infrastructure (was led) into a thicket of red tape and saddled with progressive policy goals that have nothing to do with quickly connecting Americans…There will be an important discussion about the program’s future, given that the lion’s share of the money has not been spent.” Carr also shared some “starting thoughts” in his post. “DEI requirements? Afuera!” Carr wrote. “Climate change agenda? Afeura! Price controls? Afeura! Technology bias? Afeura!” (Afuera translates to “out”.) Read more.2. Senator Ted Cruz, who will likely become Chairman of the Senate Commerce Committee, questions much of the Infrastructure Investment law, including BEAD. Senator Ted Cruz (R-TX) seems to question many things about the Infrastructure Investment and Jobs Act (IIJA), which Congress passed in 2021 with bipartisan support. Last week, Cruz sent two letters to Alan Davidson, who oversees the NTIA. Cruz warned that Congress will review the BEAD program early next year and he alluded to possible changes including getting rid of the preference for fiber; the requirement for an affordable option for low-income recipients; worker-protection guardrails; and climate change assessments. Cruz didn’t vote for the Bipartisan Infrastructure Bill, but it is current law. Any changes will have to be through votes in Congress. Texas recently became the final state of the 56 states and territories to have their BEAD funding approved. Texas received $3.313 billion in BEAD funding, more than any other state. Read more here and here.3. Supreme Court to Consider Universal Service Fund: Panelists Say It is a Good Time to Redesign. The FCC’s Universal Service Fund (USF) continues to be a highly important program for rural homes and businesses in need of broadband connectivity. But its future is in doubt for both financial and legal reasons. The Supreme Court announced on November 22, that it will hear and decide whether the Universal Service Fund is constitutional. The U.S. Court of Appeals for the Fifth Circuit in New Orleans in July ruled against the entire USF program, saying that its contribution system amounts to an illegal tax. USF collects fees from interstate and international telecommunications carriers, who in turn recoup their cost from consumers. Two other circuit courts of appeals have ruled in the other direction. Participants at the US Telecom Broadband Investment Forum last week were ready for the government and industry to begin considering decisions needed to keep USF going. Some redesign ideas to increase revenue are to require internet providers and “big tech” companies (Amazon, Meta, Alphabet, etc.) to contribute. Another possible USF redesign could see Congress directly appropriating the billions needed annually to sustain the program. Read more. 4. FCC Chair Sounds Alarm on Rip-and-Replace Program. FCC Chairwoman Jessica Rosenworcel wrote an open letter to U.S. Representative Steny Hoyer last week urging action to provide more funding for the rip-and-replace program and warning of the dangers if no action is taken. Rosenworcel—who announced that she will leave the FCC in January when the Trump administration takes power—sounded the alarm for the rip-and-replace program. According to Rosenworcel’s letter, the program, officially known as the Secure and Trusted Communications Networks Reimbursement Program, is billions of dollars short in funding. “This program to replace insecure equipment in the networks of 126 carriers faces a $3.08 billion shortfall,” wrote Rosenworcel, “putting both our national security and the connectivity of rural consumers who depend on these networks at risk.” Read more.5. Broadband M&A Set to Grow with a Stronger Market and Bundle Opportunities. Merger and acquisition activity in the broadband service sector is poised to pick up due to lower interest rates, moderating labor and equipment costs and national wireless operators’ insatiable appetite for growth. According to a new report from CoBank’s Knowledge Exchange, buyers in the broadband space have expanded beyond cable companies and traditional telecom or pure-play fiber operators. National wireless operators have been actively buying fiber companies for growth and to complement their smartphone service with the new “killer bundle,” a smartphone plan bundled with home internet. “We see M&A interest from wireless operators such as T-Mobile and Verizon as the main catalyst fueling deal activity over the next couple years,” said Jeff Johnston, lead digital infrastructure economist with CoBank. “Wireless networks have less operating leverage compared to fiber networks, so increasing their fiber exposure makes good business sense. And beyond the subscriber bundle benefits, fiber has much better margins than the capital-intensive wireless industry.” Read more.6. Ramping up the BEAD Workforce: 5 Things States, ISPs and Construction Firms Can Be Doing Now. NTIA encourages grantees to act now to ensure workers are on board and trained so that BEAD deployment remains on track. Every state and territory’s BEAD Initial Proposal includes a workforce readiness plan. And so far, more than 25% intend to allocate over $300 million in BEAD funding to support broadband workforce development initiatives. NTIA encourages State Broadband Offices (SBOs)—especially those with remaining BEAD funds after deployment obligations are met—to consider supporting workforce initiatives. To that end, NTIA has outlined a series of steps that SBOs can consider implementing now to get ahead of a potential broadband construction labor shortage. Read more.FUNDING AWARDS1. Yet BEAD still marches on: Georgia and Missouri Accept BEAD Applications: Georgia has begun accepting applications in the BEAD broadband funding program and Missouri plans to do so beginning on 12/5/24. Both states were allotted relatively large amounts of funding for the program. Missouri has $1.3 billion to award and Georgia has $1.7 billion. Georgia’s applications are due by January 15. Missouri’s applications are due February 20. Applicants for both states must qualify to receive funding. In Missouri, the deadline to apply to prequalify is February 5. Read more.2. Washington Accepts BEAD Applications. Washington is the latest state to begin accepting applications in the BEAD broadband funding program. The state has $1.2 billion to award. Applications are due January 31, 2025.  Rules for the BEAD program call for deploying fiber broadband except when cost-prohibitive. Read more.3. Pennsylvania Accepting BEAD Applications. The state of Pennsylvania has begun accepting applications for the BEAD broadband funding program. The state has more than $1.1 billion in BEAD funding to award to cover some of the costs of deployments to unserved and underserved areas of the state. Eligible parties have until January 21 to apply. The state plans to do a second funding round later next year. Read more.4. And other sources of funding still march on: North Carolina Set to Award Millions in Rural Broadband Funding. The state of North Carolina has begun accepting applications for millions of dollars in broadband funding to cover some of the costs of deploying fiber to unserved and underserved rural areas of the state. Funding will come through the Completing Access to Broadband (CAB) Program, which is administered by the North Carolina Department of Information Technology (NCDIT) Division of Broadband and Equity. Applicants must commit to providing matching funds totaling at least 30% of project costs. More than 40 providers are eligible to apply. Read more.5. Internet for All Funding by State/Territory. Read more.    Broadband Bytes is a regular feature by David Levine of UCL Swift. David is a graduate of Northern Illinois University, a certified BICSI RCDD,and a 35-year industry veteran in fiber and copper solutions.He currently works as a Business Development Manager for UCL Swift.

Dec 31, 2024