Financing fiber builds is not a cookie-cutter process

An appealing way to finance fiber builds is through asset-backed securities (ABS). However, this is only available to established companies that actually have fiber assets, which they can leverage to secure a lower cost of debt. It’s not something available to new entrants in the fiber space. Since the introduction of the Broadband Equity Access and Deployment (BEAD) program, many private equity (PE) investors have entered the fiber market. Some PEs seem to be waiting in the wings to scoop up distressed startups or even established providers. “One of the overarching trends is a hyperlocal approach, making sure the way you’re financing your fiber build is specific to that market. What may work in L.A. may not work in rural Kentucky," Phillip Boness, director of growth and strategies at the professional services firm Jacobs said. One avenue to local connection is through electric cooperatives.