By Lisa R. Youngers, President and CEO, Fiber Broadband Association
A new neighbor is moving in down the street from my home in Northern Virginia: Amazon.
Amazon just announced it will build a second set of headquarters in Crystal City, Va., and Long Island City, N.Y. In addition to a bevy of highly skilled tech workers and many transportation options, these two locations also have something else in common: fiber optic connectivity. In fact, when Amazon issued its first request for proposals for HQ2, the company identified "optimal fiber connectivity" as a prerequisite.
Faster than a Speeding Commuter Train
Sure, proximity to Washington, D.C., and a strong commuter rail system helped Crystal City, Va., win over Amazon's hearts and minds -- but those assets would not have helped had the metro area not had high-speed broadband, writes Lisa Younger. That was table stakes. (Source: Wikipedia)
But Amazon is not the only corporation acknowledging the economic value of fiber. Earlier this month, Bloomberg reported that Zayo Group, a large independent fiber owner, is fielding multiple takeover offers from the likes of Blackstone and other venture capital groups. The reason is simple: access to reliable, high-speed broadband is essential to any modern business and so fiber network assets are increasing in value. The average US employee wastes a week each year waiting on their company's network to respond, Sandisk estimates. Think of the implication for the bottom line -- not to mention employee morale. And as cloud-based applications and VOIP telephony continue to grow, high-speed, fiber-fed networks must match pace.
The financial benefits of fiber-fed connections are not limited to traditional offices; in fact, one key use case is agriculture. Forbes predicts
use of precision agriculture tools like smart tractors and yield monitoring will grow by 14% in the US alone by 2022. These technologies will vastly improve efficiency and productivity for farms.
To foster this economic benefit and to become smart cities, many communities are investing in fiber networks on a macro level, either on their own or increasingly as part of public-private partnerships or other arrangements where they share financing and operating the network with a private partner. This has proven to be a shrewd investment: the benefits of fiber deployment far outweigh its upfront costs. Because fiber provides so many economic -- not to mention educational and entertainment -- opportunities, it provides a high ROI. The economic value generated from fiber far outpaced the cost of installing and maintaining the infrastructure, a
University of Tennessee study found the. Fiber is a win-win. It is, therefore, no wonder that communities with gigabit connections like fiber have a 1.1% higher GDP than similarly situated communities without it.
As our networks evolve to support 5G applications, services and experiences, fiber will become even more valuable. Blanketing the country in networks that provide high throughput rates, low latency and the bandwidth to simultaneously support hundreds of devices will require a lot more fiber and investment than we currently have. According to our research at the Fiber Broadband Association, the top 25 metro areas in the US will need to lay down 1.4 million miles of fiber cable to support 5G. Likewise, Deloitte estimates that the US needs to invest more than $130 billion in fiber deployment in the next few years to keep up with the 5G rollout. So as fiber needs grow, so too does the value of fiber and the fiber industry. (See US Needs Accurate Broadband Map and Deloitte: Invest $150B in Deep Fiber or Else.)
Now more than ever, fiber's stock is on the rise. It seems analysts and investors alike have come to understand that fiber is the network of the future. High-speed, future-proof connectivity is vital to our economy -- and the time to invest in fiber is now.
The strength of natural disasters like hurricanes is worsening, scientists say, and it's imperative that broadband infrastructures can withstand or be speedily repaired post-catastrophe, writes Fiber Broadband Association President and CEO Lisa Youngers.
It would cost about $70 billion over 10 years to bring all-fiber fixed-access broadband to rural and small-town America, writes Fiber Broadband Association President and CEO Lisa Youngers in this month's exclusive BBWN column. The ROI? Priceless.
It wasn't long ago that TV was ranked by subscribers as the most important service in the bundle provided by their communications service provider (CSP). Recent research indicates that for nearly three quarters of subscribers, broadband is now the most important service. Broadcast TV is the most important service to only 15% of North American consumers, replaced by OTT video streaming platforms like Netflix, Amazon Prime and Disney+. In addition, many different competitors are moving aggressively to stake a claim in consumers' homes.
In 2020, CSPs need to fight back by transforming their business models, which are becoming more reliant on a single source of revenue: fixed broadband services.
This webinar will focus on helping CSPs transform their business models by placing a firm focus on delivering a sensational subscriber experience and by offering compelling new services that generate value for subscribers. These actions will reinforce the CSP's strategic position in the home network and position themselves for growth in the next decade.
Key topics include:
Being the first to market with WiFi 6 technology, in response to consumer purchases of new devices over the holidays;
Having the insights needed to proactively resolve issues, often before your subscribers even know that there are issues;
Providing help desk agents with the visibility they need to resolve common subscriber issues more quickly;
Delivering a mobile app, in response to consumer demands for the ability to do some things themselves, rather than having to call technical support; and
Addressing consumer concerns around device security, privacy and control with enhanced security and parental controls.
In this insightful Light Reading radio show, Kurt Raaflaub, Head of Strategic Solutions Marketing, will outline the key service provider challenges, deployment considerations, next-gen Gigabit technologies, and service models to win market share in the rapidly growing MDU market.