Broadband funding really got rolling in 2023, as the federal government began the process of its $42.5 billion Broadband Equity, Access and Deployment (BEAD) Program. To help states and territories with their challenge process, in April, National Telecommunications & Information Administration (NTIA) released draft guidance that expands upon the Notice of Funding Opportunity (NOFO) issued in May 2022. States got their BEAD allocations, with the highest funding amounts going to Texas ($3.31 billion), California ($1.86 billion), Missouri ($1.74 billion), Michigan ($1.56 billion) and North Carolina ($1.53 billion). Naturally, the BEAD funds come with some strings attached. One of which is the Build America, Buy America Act (BABA), which requires that fiber networks funded by BEAD must use components that are at least 55% made in America. In response to industry criticism that it’s difficult to source some components in the US, NTIA proposed waivers for some recipients. In November, NTIA released a waiver for BEAD’s letter of credit requirement. In December, Louisiana was the first state to snag approval for its initial proposal. 

As the curtain begins to rise on the prospect of $42.5 billion in Broadband Equity, Access and Deployment (BEAD) deployments, many are looking ahead to see what the historic investment will mean for broadband expansion. But before we turn our gaze toward the future, let's pause and reflect on the fiber milestones achieved thus far. A November 2023 analysis from New Street Research revealed that the telecommunications industry collectively increased fiber locations by 1.8 million in the third quarter of this year, with “most of the increase driven by AT&T.”

• AT&T: As of the third quarter, AT&T’s fiber was available to 20.7 million consumer and about 3.3 million business customer locations.
• TDS: In the third quarter, TDS raised its 2023 fiber service address goal to 200,000, up from 175,000. The company is targeting 1.2 million marketable fiber service addresses by 2026 and ended the 2023 third quarter with 709,000. 
• Google Fiber: Google Fiber doesn’t share exact numbers on its fiber expansion, but disclosed that in 2023 its build increased by more than 10% over 2022 — both in terms of miles of fiber deployed and the number of homes passed. 
• Lumos: Lumos constructed approximately 1,500 miles of fiber in 2023. Its current passing total is over 300,000 homes and businesses, as it makes its way to a goal of passing 1 million households by 2026. 
• Lumen: For the full year 2023, Lumen expects it will have deployed a total of 500,000 or more fiber-enabled locations, including residential and small business locations through the company’s Mass Markets segment.
• GoNetspeed: GoNetspeed launched service to more than 26 communities throughout its footprint and accelerated builds in the second half of 2023.
• UTOPIA: UTOPIA built 448.5 miles of fiber (overhead and underground) in Utah this year, for a total of 23,069 homes passed in the state.
• WOW!: As of the close of its third quarter, WOW!’s all-fiber network had passed a total of 14,100 greenfield homes in Central Florida.

As part of an effort to accelerate the expansion of high-speed internet access, Colorado officials announced that broadband service providers can install fiber along the state’s roadways at a lower rate. The Colorado Transportation Commission approved a fee schedule that makes the Colorado Department of Transportation’s property available for broadband development. Under the new fiber access fee schedule, broadband providers can pay $0.10 per foot of fiber optic line in urban counties with populations above 200,000 people and $0.03 per foot in rural counties. There is also a one-time charge of $0.05 per foot to cover permitting costs. The fee schedule is the lowest in the region and is 90 percent lower than the initially proposed version. 

Nebraska is both an agricultural state and a state with growing metropolitan areas. Agriculture, in particular, is important to Nebraska’s economy; Nebraska ranks second in the use of precision agriculture technologies. Nebraska ranks 3rd in percent of households with fiber internet available, with 56 percent of households having fiber available. However, Nebraska ranks 30th in the availability of 25/3 Mbps and 100/20 Mbps broadband via copper, cable, fiber or licensed fixed wireless. Ookla’s speed test ranking for the second quarter of 2023 places Nebraska at 29th. To meet the digital needs of the state's unique geography, population, and industries, the Nebraska Information Technology Commission developed and released the Draft Nebraska Digital Opportunities Plan. The plan is open for public comment until January 2, 2024. Nebraska will grow its economy and improve the lives of Nebraskans by ensuring that Nebraskans have access to affordable, quality broadband, appropriate devices and the skills to use technologies at home, in school, on the farm or ranch, in businesses, in health care, and in government. 

Although the Federal Communications Commission did not have its auction authority for most of 2023, some important events came to pass. The wireless industry lobbied much of the year for reallocation of spectrum in the 3.1-3.45 GHz band, which didn’t happen. The Biden Administration delivered a plan for a National Spectrum Strategy, which includes further study of the 3.1-3.45 GHz band. And Congress agreed to legislation so that T-Mobile can take possession of the 2.5 GHz licenses that it bought and paid for. Although CTIA and other entities spent considerable time and money lobbying for a section of the lower 3 GHz band to be teed up for the wireless industry, the Department of Defense (DoD) dug in its heels and refused to budge. The DoD is the sole user of that spectrum and doesn’t want to give it up. The National Spectrum Strategy identified four other bands for near-term study, including in the 5 GHz range, the 7-8 GHz range, the 18 GHz band and the 37 GHz band. While wireless carriers always argue that they need more spectrum immediately, the industry still needs time to pay down debt incurred in prior auctions, noted New Street Research (NSR) policy analyst Blair Levin. NSR believes the study period for these bands will be several years, with the auction planning adding another couple, putting the next big spectrum auction occurring no earlier than the second half of the next Administration, or the 2027-2028 time frame.

Although fiber was the talk of the town in 2023 – with state and federal governments doling out funding to support fiber projects – the cable industry also underwent some changes. Comcast began DOCSIS 4.0 rollouts. In October, it unveiled a new line of symmetrical multi-gig service with speeds of up to 2 Gbps. Another interesting development this year was the “relatively speedy evolution” of extended DOCSIS 3.1. Cable operators can extend DOCSIS 3.1 to buy more time before they need to upgrade to an end-to-end DOCSIS 4.0 system. CommScope sold off its Home Networks division to Paris-based Vantiva. Created in 2020, Home Networks focuses on CPE like broadband gateways and set top boxes. CommScope previously had plans to spin off the unit to a standalone entity, but delayed that plan in 2022.