Contact: Lauren Gaydos, (703) 351-2015
Arlington, Va., (June 1, 2021)—A new engineering report commissioned by the Foundation for Rural Service examining various broadband technologies deployed in “greenfield” builds (where a network is built from scratch) concludes that fiber provides the most cost-effective, future-proof option in rural communities when taking stock of anticipated increases in user demand over time.
The report, “Future Proof: Economics of Rural Broadband,” released today, was prepared by Vantage Point Solutions, Inc., to review the long-term viability of different broadband technologies from a network engineering and economics perspective.
“Broadband demand is only increasing, as more and more people are working, learning, and accessing health care from home,” said FRS Executive Director Pam Becker. “As providers evaluate what choices to make in responding to user demands now and well into the future, this paper should help provide a useful analysis of the capabilities of various networks now and over the life of these long-term investments.”
Key findings of the report include:
- Solutions that may appear to cost less upfront do not always reflect the most economic choice in the long-term from an engineering perspective when considering escalating user demands and the need for network upgrades to keep pace.
- When viewed over a reasonable time horizon, fiber deployments ware more efficient (and promising for consumers) than other technology choices in light of their lower operating costs, the ability to upgrade such networks without needing significant rebuilding, and the speeds that can be delivered. As just one example, over 30 years, a mid-band wireless network might cost 30% less than a fiber-to-the-premises (FTTP) network but it would also be at least 10 times slower at the start and many times slower by the end of that period.
Funding for the report was provided by FRS, with support from the Rural Independent Competitive Alliance (RICA). The full report, along with other reports from FRS, can be downloaded here.
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The Foundation for Rural Service (FRS), the philanthropic arm of NTCA–The Rural Broadband Association and its members, seeks to sustain and enhance the quality of life in rural America by advancing an understanding of rural issues. Through scholarships, grants, and a variety of educational programs, FRS focuses on educating rural youth, encouraging community development and introducing policymakers to challenges unique to rural communities. Visit us at www.frs.org.
NTCA–The Rural Broadband Association is the premier association representing nearly 850 independent, community-based telecommunications companies that are leading innovation in rural and small-town America. In an era of transformative technological advancements, regulatory challenges and marketplace competition, NTCA members are leading the technological evolution for rural consumers, delivering robust and high-quality services over future-proof networks that make rural communities vibrant places in which to live and do business. Because of their efforts, rural America is fertile ground for innovation in economic development, e-commerce, health care, agriculture and education, and it contributes billions of dollars to the U.S. economy each year. Visit us at www.ntca.org.