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Other Covid Impacts on the Supply Chain Front

We all know the horrific impacts that COVID-19 has had on so many people across our country and across the globe. The loss of friends and family members, the isolation of our most vulnerable populations like our elderly, the economic impacts as millions have lost their jobs and the list sadly goes on.

We also know that connectivity has never been as important as it is today. The ability to be able to work while sheltering in place, to conduct schoolwork online, to skip the doctor’s office visit with a telemedicine visit instead have just further amplified the importance of internet access and how that has also morphed into a critical discussion we all need to be having on lack of access and affordability, economic opportunities post-COVID, the future of work with the shift to remote work and the link between broadband and our country’s future prosperity. But that doesn’t mean that deploying broadband networks is nearly as easy as citing how critical they are.

One of the unexpected negative results of the pandemic has been the significant challenges NTCA members have faced on the supply chain front as they work to procure telecom supplies. Some interesting feedback below from some of our membership who responded to our request on impacts in recent weeks…

As of early July, 90 percent reported delays in procuring various kinds of telecom equipment:

51 percent reported a delay in obtaining fiber – over 30 percent of those noted delays of at least 12 weeks. Of those reporting a delay:

67 percent cited delays associated with demand (particularly with numerous grant and subsidy programs underway with short build windows).

33 percent cited delays associated with COVID related impacts on production.

42 percent of respondents report delays in obtaining fixed wireline networks electronics. Nearly half reported delays of 9-12 weeks. Of those reporting a delay:

48 percent cited delays associated with demand or general logistical/production issues.

26 percent cited delays associated with COVID related impacts on prodcution.

81 percent of our responding members report delays in obtaining customer premises equipment. Nearly 60 percent reported delays of 9-12 weeks. Of those reporting delays:

47 percent cited delays associated with demand or general logistical/production issues.

32 percent cited delays associated with COVID related impacts on production.

When you start to pull out a calendar and look at timelines required for various federal programs or the shorter build seasons for rural broadband providers in the northern climates, a three month delay means real implications to getting service where it is needed and certainly will delay construction or deployment for numerous households this fall in time for a new potential on-line school year.

While I am not sure there are any universal answers to this quandary, it is important for policymakers to know as they think through their COVID responses and how they might think about strengthening the economy for future crises and I appreciated the opportunity to share that with USDA Secretary Perdue’s team today in a checkin video chat.