America’s broadband providers are investing at a high rate, according to USTelecom – The Broadband Association’s 2024 Broadband Capex Report.
The Association says providers invested $89.6 billion last year, which it called a “near-record.” Since 1996, broadband providers have invested $2.2 trillion.
The broadband capital expenditure (capex) report provides a chronological overview of the amount invested: 2020–2024 ($90.4 billion on average per year); 2014–2019 ($78 billion); 2009–2013 ($69.2 billion); 2002–2008 ($65.8 billion); and 1996–2001 ($85.6 billion).
The drivers of the investment were not monolithic. The broadband capex report points to five phases of investment:
- 1996–2001: Light-touch regulation and dot-com boom
- 2002–2008: Stabilization, early broadband and mobility advancement
- 2009–2013: Start of the streaming era and smartphone surge
- 2014–2019: Fiber and wireless densification
- 2020–2024: Remote connectivity, 5G and AI era
Last year, spending capital spending continued investment in fiber deployment, deeper rural reach, wireless development, and increasing network capacity to support emerging and new technologies such as artificial intelligence (AI), cloud computing, and streaming. This, the report said, was done in the face of higher interest rates and “a more cautious capital expenditure environment.”
The report points out that the industry focused on operational efficiencies and was able to draw on equipment stockpiled during supply chain shortages.
“Broadband networks are the backbone of modern life — connecting communities, strengthening the economy, and enabling opportunity in every corner of the country,” USTelecom President and CEO Jonathan Spalter said in a press release about the broadband capex report.
“Every dollar invested strengthens the foundation for innovation, helping hospitals care for patients, farmers feed our nation, educators inspire students, and families stay connected. As we advance deeper into the era of AI and other critical technologies, provider investment in American communications infrastructure is fueling our nation’s leadership and economic progress.”
Almost exactly a year ago, The Broadband Association’s 2024 Broadband Capex Report reported that broadband providers invested $94.7 billion into U.S. infrastructure in 2023.
