Reporting

As May nears its final days, so does the Affordable Connectivity Program (ACP). The ACP, which entered a partial payment period at the start of the month, will officially end on May 31, unless Congress decides to save it. While there are myriad efforts underway to compromise on a path forward, saving the program is still seen as unlikely.

The outlook for the Affordable Connectivity Program (ACP) remains terminal, with none of the multiple late-hour efforts in Congress intended to replenish funding for the depleted program appearing close to achieving that goal. The cancellation of the ACP, which comes at a time when the US broadband industry is already bleeding customers, with Comcast Cable president and CEO Dave Watson telling investors to expect increased customer attrition in the second and third quarters. On a consumer level, the ACP’s sunset could leave more than 23 million U.S.

Broadband infrastructure may be the latest public utility connecting homes and businesses, but it’s also foundational to the emergence of “smart roads” and autonomous vehicles (AVs). Much of the discussion around broadband expansion has been focused, appropriately, on connecting large swaths of the nation with no Internet or less-than-stellar infrastructure.

Some broadband operators view fixed wireless access (FWA) as a looming, competitive threat.

AT&T CEO John Stankey touted open access fiber networks, giving several examples of how they could be structured to benefit AT&T. AT&T is partnering with BlackRock for an open access joint venture called Gigapower. The JV is building networks outside of AT&T’s footprint. It already has fiber builds in progress in parts of Arizona, Florida, Minnesota, Nevada, New Mexico, North Carolina, Pennsylvania and South Carolina.

John Greene, former CEO of New Lisbon Holdings, said, “Who would have ever thought we’d see private equity filter into rural areas and small companies?” Rural broadband is very expensive to build. That’s why the Broadband Equity, Access and Deployment (BEAD) program is designed to subsidize the gap where it otherwise doesn’t make financial sense for private companies to build. Panelists at the Connect(X) show noted that one of the main competitors in some rural areas is the local electric co-op. Greene said rural electric co-ops “are going to be a force to be reckoned with.

Cities and towns that build their own broadband networks often say they only considered the do-it-yourself option because private Internet service providers didn't meet their communities' needs.  Hundreds of municipal broadband networks have been built around the US as a result, including dozens that have started operating since 2021. The rise of public broadband hasn't happened without a fight, though.

AT&T’s CEO highlighted the operator's progress of combining 5G, fiber and other forthcoming elements like direct-to-satellite communications. “Converged is now the opportunity” CEO John Stankey stated. “That’s going to be one of the key areas for us to get to 40 or 50% [market penetration rates],” he added. This convergence includes fiber, as it was noted that AT&T is on track to reach its goal of 30 million fiber locations passed by the end of 2025. The converged landscape also includes 5G.

“The main long-term competitor for us is fiber,” says Comcast Cable CEO Dave Watson. Comcast is in the process of rolling out mid-split upgrades and preparing for the launch of DOCSIS 4.0. Comcast doubled mid-splits year over year and now reaches 40% of its footprint. Watson said the company has previously been asked if it’s holding back on network investments to manage capital intensity. He said, “We’re not holding back one bit.

In May 2024, Frontier posted positive quarterly revenue for the first time in nearly a decade. But maybe that’s not so surprising, given fiber has become its golden goose. Frontier Executive Chairman John Stratton recently reiterated the company’s year-end goal of building 1.3 million fiber passings.