5-year U.S. fiber investment to surpass all previous years combined: RVA

March 14, 2022
New research further forecasts that by 2026 the number of new route miles of fiber installed for any network purpose is also expected to rival all fiber route miles installed to date.

In its latest report entitled, “2022-2026 North American Fiber Broadband Report: FTTH and 5G Review And Forecast,” market research and consulting firm RVA LLC (Tulsa, OK) estimates that -- barring significant unforeseen economic or geopolitical disruptions -- the five-year U.S. capital investment in fiber-to-the-home (FTTH) technology and services will exceed all investment in FTTH to date, surpassing $125 billion in the reporting period.

Likewise, the research states that 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 during the reporting period.

Fiber drivers enumerated

There are several drivers for the unprecedented build cycle highlighted in the report. Based on RVA LLC market research for the Fiber Broadband Association (FBA), "the market has spoken, in every sense, in support of end-to-end fiber versus all other internet delivery methods," according to a statement from the research firm.

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, the report explains that "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," adds the report's summary.

Meanwhile, the analyst states that "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."

Report methodology

RVA says its performance analysis is based on recall, opinions, and direct speed and latency tests conducted during its national annual random Internet consumer study.

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.

Background data is based on extensive research and quantitative analysis involving public data and interviews with hundreds of providers, vendors, and industry experts, as well consumer surveys of over 3,500 online users.

Visit  RVALLC.com for more information.

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