We at NTCA are encouraged to see rural broadband take center stage as people talk about how to improve our nation’s infrastructure. Especially in the middle of a pandemic, more people than ever – especially in Washington DC and in the policy arena -are realizing that robust and reliable broadband is simply essential for people to work and learn from home and for our country to move forward. And it has been encouraging to see the resources being put toward addressing gaps in broadband coverage. From the recent non-stop roll-out of ReConnect awards to the ongoing Rural Digital Opportunity Fund, to thinking about action in the next Congress, policymakers have stepped up to provide funds that help make the business case for investment in broadband networks in deeply rural America.
As NTCA members can attest, however, the job is only beginning when the funds start to flow. We are not just building networks for networks’ sake, and while all of these funds and the private investment activity they spur can help create jobs in the construction, tech, and other industries, the ultimate goal of these programs of course is to make sure that every American has access to the level of broadband required for work, education, healthcare, and other fundamental needs in our increasingly digital society. So when the broadband money is awarded, that’s really just the starting line and not the finish.
NTCA members – and many other providers too – are eager to keep building these broadband networks and delivering on the promise of these programs for millions of Americans. But there are clouds on the horizon that could seriously complicate and undermine these efforts. In particular, we are hearing from members that the lead times for fulfillment of orders of telecom supplies like fiber and routers are approaching deeply concerning levels. One member recently received a quote that included approximately eight months for fiber, and another was told it would take one year for a fiber order to be fulfilled. And these stories came from providers who are larger than many in our membership. A survey of members that NTCA did a few months ago reinforces these concerns, indicating that nearly 90% of respondents had experienced delays in procuring equipment. For those seeing delays in obtaining fiber, 32% reported delays of 5 to 8 weeks from prior windows, while another 32% reported delays of more than 12 weeks. Meanwhile, of those seeing delays in getting network electronics gear, 48% reported delays were stretching up to 9 to 12 weeks – and for customer premise equipment such as routers, 58% of those seeing delays reported those were stretching 9 to 12 weeks beyond prior estimates.
These supply chain delays could have real implications on American consumers – and they could present real problems too when it comes to provider compliance with things like buildout deadlines and performance testing obligations that depend upon fiber, routers, and testing equipment that must be placed within customers’ homes and businesses. It’s terrific that Congress and federal agencies are taking seriously the need to provide resources to drive broadband investment in rural America. Those resources are essential if we’re going to make sure every American has access to sufficient broadband. But as a matter of execution, it’s going to be equally important that policymakers pay attention to whether the supply chain can keep up and consider what steps must be taken to ensure that happens. And how do we think through possible prioritizing in a way that the smallest providers, serving the most rural parts of our country, don’t continue to be pushed to the back of the line for a larger providers much larger order of any of this equipment? If the pandemic, trade concerns, and/or even just increased demand driven by all of these programs results in a shortage of fiber, antennas, routers, or customer premise equipment, we could see truly unfortunate delays in realizing the benefits of broadband promised by these many good programs and other potential infrastructure initiatives to come.
Keeping our eyes as a country collectively on the common goal will be critical in the months to come to keep those potential squalls at bay.