The Broadband Revolution: A Deep Dive into the BEAD Program and Fiber Expansion Milestones

As the Broadband Equity, Access, and Deployment (BEAD) program unveils its $42.5 billion investment, the telecommunications industry is poised at a pivotal juncture. This historic funding is set to revolutionize broadband expansion in the U.S. Before we look forward to the transformative potential of this investment, let's review the significant fiber milestones achieved in 2023, as reported by industry leaders to Fierce Telecom. The industry is extremely competitive and that dynamic is not expected to diminish in 2024.

AT&T Fiber's Impressive Growth

A recent analysis by New Street Research highlighted the telecom industry's collective addition of 1.8 million fiber locations in Q3 2023, largely driven by AT&T. By this quarter, AT&T's fiber reached 20.7 million consumer and 3.3 million business locations. The company's aggressive market penetration led to the addition of 296,000 fiber customers in Q3 alone, marking its fifteenth consecutive quarter of substantial net fiber additions. AT&T now boasts over 8 million subscribers, doubling its customer base in under four years. With plans to cover over 30 million locations by the end of 2025, AT&T's fiber expansion is a testament to its commitment to broadband accessibility.

Lumen's Consistent Deployment

Lumen expects to have deployed over 500,000 fiber-enabled locations in 2023, including residential and small business locations. The company plans to maintain this deployment pace in 2024, eyeing government funding programs like BEAD for further expansion.

Google Fiber's Steady Expansion

Google Fiber reported a more than 10% increase in its fiber build in 2023 compared to 2022, both in miles deployed and homes passed. This growth follows a significant increase the previous year. In 2023, Google Fiber expanded into several new states and introduced an 8 Gbps broadband tier in Arizona, with plans for a 20-gig service rollout by year-end.

Lumos: Accelerating Fiber Rollout

Lumos constructed approximately 1,500 miles of fiber in 2023, passing over 300,000 homes and businesses. With a goal of reaching 1 million households by 2026, Lumos invested nearly $100 million in Greenville County, South Carolina, and continued service expansion in North Carolina. The company's $1.1 billion sustainability-linked financing deal underscores its long-term fiber rollout plans.

WOW!'s Strategic Market Expansion

WOW! passed 14,100 greenfield homes in Central Florida by Q3 2023, investing over $71 million in its all-fiber network. The company announced plans to pass additional homes in Michigan, Minnesota, and Florida, aiming for 400,000 new homes by 2027.

GoNetspeed's Rapid Growth

GoNetspeed launched service in over 26 communities in 2023, with plans to pass more than 140,000 locations by year-end. The company's privately-funded model allows for swift expansion without relying on external funding.

TDS Telecom's Ambitious Targets

TDS Telecom raised its fiber service address goal to 200,000 in Q3 2023, up from 175,000, targeting 1.2 million addresses by 2026. With 709,000 addresses covered by Q3 2023, TDS is set to receive $90 million annually for 15 years through the FCC's Enhanced A-CAM offer, aiding its expansion in ILEC markets, currently 40% fiber. The company plans a strategic slowdown in spending next year, focusing on broadband penetration in new fiber markets.

UTOPIA's Municipal Network Success

UTOPIA, one of the largest municipal-owned networks in the U.S., built 448.5 miles of fiber in Utah in 2023, passing 23,069 homes. With high take rates in several cities, UTOPIA continues to expand its fiber service.

2023 Was an Accelerator Year for Broadband Expansion

The BEAD program's rollout marks a new era in U.S. broadband expansion, with industry leaders like AT&T, TDS Telecom, Google Fiber, Lumos, Lumen, GoNetspeed, UTOPIA, and WOW! leading the charge. These companies' achievements in 2023 set the stage for a future where high-speed, reliable internet is accessible to all, transforming how we connect and communicate.