Is Fiber Growth Slowing?

Data from industry analyst Cowen that shows that some of the largest fiber builders in the country have already trimmed back their construction plans for 2023. Do these cuts mean that fiber competition won’t materialize as planned? There have been big external changes affecting the entire industry. Fiber material costs are up, as evidenced by the recent price hike announced by Corning. Prices of fiber components are up across the board for everything from conduit, handholes, drop wires, etc. A bigger cost impact is the cost of labor, with technician's labor rates rising across the industry. Fiber construction is also not immune from interest rate increases. All of this adds up to a lower return for fiber builders. Any level of cutbacks is good news for cable companies since the above cutbacks mean several million fewer fiber passings to compete with by the end of 2023.