US Market Update

According to Fiber Broadband Association’s 2022 Fiber Provider Survey, “there are now a total of 68 million fiber broadband passings in the U.S., up 13% over the past 12 months and up 27% over the past 24 months”. Homes passed is the first step, however, it is the homes connected that helps reduce the equity gap. The step to connecting homes can be costly, especially when the distance between homes is large, as it is often the case in rural areas. However, the equity gap goes beyond rural communities. According to ‘The New York City Internet Master Plan’, “nearly a third of New York City households do not have a broadband connection at home”. This means that a significant amount of investment is needed to close the equity gap, such as the Broadband, Equity, Access, and Deployment (BEAD) Program.

?

The BEAD Program aims to reduce the equity gap by providing “$42.45 billion to expand high-speed internet access by funding planning, infrastructure deployment and adoption programs in all 50 states, Washington D.C., Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands”. On June 30th, the allocation of funding by state will be released. From there, states have up to 180 days to submit their initial proposals for grant programs, but each state has a very different level of preparedness and areas with underserved broadband.

?

Reflecting on our experience with fiber rollout programs in Europe, we are anticipating that high-level network designs and feasibility studies will be key factors for winning BEAD bids.

?

The high-level network design requirement is a huge challenge because grant application deadlines are often very tight, and many internet service providers lack the resources to complete manual designs within the required time. This is where network design automation can help you save time and resources. Network design automation allows you to define the network architecture and engineering rules to produce accurate plans and costs for strategic planning as well as BEAD and other grant programs. Moreover, you can also run model automation on batches of information to help you evaluate various scenarios quickly and maximize your chance of winning the tender.

A common challenge for internet service providers is delivering their fiber rollout on budget. Being able to accurately calculate costs before a bid submission is essential for developing a strong business case, as well as ultimately impacting the longevity of the internet service provider. This is where a network design automation tool can assist by considering costs of reusing existing infrastructure vs. creating new infrastructure, as well as incorporating the costs of equipment into the bill of materials.

Founded in 2000, Setics is one of the leading independent consultancies specializing in the design and management of high-speed broadband network projects, software publishing and digital development territories around the world.