Broadband Industry Sees 7.5% Drop in Capex in 2023

WASHINGTON, Oct. 21, 2024 – America's broadband industry invested $94.7 billion in communications infrastructure last year, representing a 7.5% drop from the prior year.

While lower in 2022, the investment marked the second-highest capital expenditure in 22 years, according to USTelecom’s 2023 Broadband Capex Report, released Friday. The annual report provided a comprehensive look at capital investments by the broadband industry.

The 2023 investment reflected a broad range of activities, including the expansion of fiber networks, integration of fiber and mobile technologies, increased rural broadband construction, and additions to network capacity to meet growing demand. The investment brought the industry’s total infrastructure spending since 1996 to nearly $2.2 trillion.

Despite the significant investment, the $94.7 billion figure was considered conservative, as it excluded contributions from smaller wireline providers, electric cooperatives, and satellite broadband operators. USTelecom estimated that these entities added at least $2 billion in additional spending.

“This data shows the U.S. broadband market is clearly working. Broadband competition is continuing to drive unprecedented value for U.S. consumers who are connecting at faster speeds and lower prices,” said USTelecom President and CEO Jonathan Spalter.

USTelecom, a leading trade association representing telecommunications providers like AT&T, Verizon, and Lumen Technologies (formerly CenturyLink), attributed the 2023 capex spending to strong consumer demand and intense competition within the broadband marketplace.

Regulatory decisions by the Federal Communications Commission could influence future investment decisions. The FCC has established a long-term fixed broadband speed goal of 1 Gigabit per second download speed, paired with 500 Megabit per second upload speed.

In a filing to the FCC regarding a pending broadband report that will assesses whether advanced telecommunications capabilities are being deployed to all Americans in a reasonable and timely fashion, the Fiber Broadband Association recognized fiber as the only technology capable of delivering the speeds needed to meet the long-term benchmarks being considered by the Commission.  

Additionally, FBA data revealed that more than 30% of connected homes in North America subscribe to 1 Gbps or higher. According to FBA, this figure was expected to surpass 50% within the next four years.

As of Sept. 2023, over 30 million U.S. households were connected to fiber, representing a 45% take rate among homes passed, according to FBA.