Broadband Industry Grapples With High Inflation and Acute Workforce Shortage

Between supply chain disruptions and the rising price of goods, the increased costs of fiber deployment could be pushed onto consumers.

Teralyn Whipple

Dec 26, 2022 — 3 min read

Graphic courtesy of MyScholarHub

Inflation-driven high prices for materials, supply chain disruptions, and a shortage of workforce labor are putting significant economic pressures and delays on builders of fiber networks.

Inflation has gripped the United States for almost a year and a half. The latest consumer price index report has year-over-year inflation at 7.7 percent. Over the course of the year, the U.S. Bureau of Labor Statistics reported rates as high as 9.1 percent. The fiber industry is feeling the effects of inflation — even more so than other industries.

The 12 Days of Broadband 2022 (click to open)

On the First Day of Broadband, my true love sent to me:
A Symmetrical Gigabit Network
On the Second Day of Broadband, my true love sent to me:
24 Reverse-Preemption Pole Attachment States (2022 edition)
On the Third Day of Broadband, my true love sent to me:
Section Two-30 of the Communications Decency Act
On the Fourth Day of Broadband, my true love sent to me:
$42.5 billion in Broadband Equity, Access and Deployment funds
On the Fifth Day of Broadband, my true love sent to me:
5 Federal Communications Commissioners
On the Sixth Day of Broadband, my true love sent to me:
Wi-Fi 6E
On the Seventh Day of Broadband, my true love sent to me:
7.7% annual inflation rate
On the Eighth Day of Broadband, my true love sent to me:
8,132,968 census blocks and a national Broadband Fabric
On the Ninth Day of Broadband, my true love sent to me:
$9 Billion Universal Service Fund
On the Tenth Day of Broadband, my true love sent to me:
$10 Billion Remaining in the Affordable Connectivity Program
On the Eleventh Day of Broadband, my true love sent to me:
11th Year of Xi Jinping’s rule in China
On the Twelfth Day of Broadband, my true love sent to me:
12 or More State Broadband Officers

Rising costs of goods are estimated to push costs of each new mile of fiber upward an additional $4,814, according to consulting firm Dgtl Infra in a July report. Government officials warned last summer that the increased cost of deployments could be pushed onto consumers.

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FBA iija 12 Days of Broadband Infrastructure Congress Dgtl Infra featured Gina Raimondo inflation John Hickenlooper Network Equipment Transparency Act Ohio