The Fiber Broadband Association (FBA) has released its 2024 Fiber Deployment Cost Annual Report, conducted by Cartesian, analyzing the evolving costs of fiber broadband deployment. The study found that broadband service providers anticipate future cost changes to remain stable or increase slightly (by less than 10%), a significant improvement from the previous year’s outlook. The median cost for underground fiber deployment rose 12% year-over-year, while aerial fiber deployment costs remained largely unchanged. The report offers critical insights into how these cost trends impact fiber network expansion, informing policymakers and industry leaders navigating broadband infrastructure investments.
The study attributes rising fiber deployment costs primarily to increasing labor and material expenses, with labor alone accounting for 60-80% of total deployment costs. Underground deployment costs varied depending on construction techniques, with plowing being the most cost-effective and trenching the most expensive. Aerial fiber deployments showed minimal cost variation between Strand and Lash and ADSS cabling methods. Despite cost increases, new federal and state funding initiatives, such as Texas’ $700 million BOOT program, are expected to support continued fiber expansion, particularly in rural areas.
Industry leaders predict 2025 will be another strong year for fiber deployments, driven by a mix of public and private investments. The report serves as a benchmark for evaluating the affordability of fiber networks and their scalability to reach more communities. The findings will be discussed in an FBA webinar on February 6, 2025.
- The Fiber Broadband Association’s annual report analyzes fiber deployment costs.
- Providers expect costs to remain stable or increase slightly, a better outlook than in 2023.
- Underground deployment costs increased by 12%, while aerial deployment costs remained stable.
- Labor accounts for 60-80% of total fiber deployment costs.
- Federal and state funding, including Texas’ $700 million BOOT program, will support further fiber expansion in 2025.
Michael Dargue, Vice President at Cartesian, said: “New federal and state funding will start to flow through to providers this year, and more rural areas will gain access to fiber. Together with private investment, we expect 2025 to be another record deployment year despite rising costs.”
