Telecom and broadband providers big and small have had an eventful 2024, and 2025 is set to be just as exciting, if not more so. Here are the top telecom news stories that Telecompetitor covered in 2024 — and issues that will be top of mind in the year ahead.
The Broadband/Mobile Bundle is the New Multi-Play. Customers who buy a bundle that includes home broadband and mobile service generate more revenue and are less likely to churn. AT&T and Verizon already offer the bundle in their local service territories and are now seeking ways to expand the number of markets where they can offer it – AT&T via a co-marketing deal with Windstream and Verizon via its planned Frontier purchase. And while T-Mobile traditionally focused only on mobile, it’s jumping into home broadband via its fixed wireless offering and via joint ventures to acquire Lumos and Metronet. Meanwhile, more cablecos and smaller, more rural broadband providers are pursuing MNVO deals to support their own bundled offerings.
Providers Big and Small Win Broadband Funding. The past year was a big one for state broadband funding programs, as states awarded money that they had received via the American Rescue Plan Act (ARPA). Funding from ARPA and from other sources will cover some of the costs of buildouts to unserved and underserved rural areas. Check out Telecompetitor Broadband Nation for our extensive coverage of awards made over the past year, sorted by state. Only one state has made awards in the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) Program as of now. But loads more BEAD awards will be coming in 2025.
New Fiber Financing Option Emerges. The first company to offer fiber broadband in a market has a tremendous advantage. Recognizing this, providers want to deploy fiber as quickly as they can to as many places as possible — and that means they need capital. That reality has driven an innovative new option known as asset-backed securitization (ABS) that enables providers to get financing at a low interest rate by securing it with existing fiber assets. Frontier and a few other companies pioneered this approach, but others are exploring it. And it’s a key factor in Windstream’s and Uniti’s plans to recombine their businesses.
But Fiber Won’t Reach Everywhere. Despite the fiber frenzy, other technologies — including fixed wireless and low-earth orbit satellites — also are seeing strong deployment trends and will continue to do so. Take AT&T’s recent news about its plan to shut down copper networks by 2029. The company expects to pass 50 million locations in its local service territory by that time, but that leaves another 38 million locations where the company expects to rely on fixed wireless (which is considerably faster than DSL) and even satellite broadband. And while the rules for the BEAD program prioritize fiber, funding will go to FWA and satellite in areas where fiber would be too costly. Some stakeholders want even more funding to go to non-fiber technologies as a means of reducing program costs — and whether those efforts will be successful is a big wild card for 2025.
With Revamps, DOCSIS/Cable Broadband Also Will Be Around for Quite Some Time. Cable companies are among those winning government funding for rural broadband builds, and most of that money will go toward fiber. But where the cable companies already have DOCSIS/cable infrastructure in place, they’ll be doing all they can to boost performance without an overall shift to fiber. Comcast already is making significant inroads in upgrading its cable broadband network to support multi-gigabit speeds by using DOCSIS 4.0. A new option — DOCSIS 3.1 Extended, a.k.a. DOCSIS 3.1+ — also has quietly emerged and could have strong appeal for smaller cable providers. And maybe some bigger ones, too.
Top Telecom News 2024
AI Offers Promise and Perils. AI in smartphones has captured mainstream attention. But it means a lot more for mobile and broadband providers, who are looking at using it to manage their networks more efficiently and generate new revenue streams. Detractors point to potential security risks. But the Department of Homeland Security offers AI guidelines to safeguard critical infrastructure, including telecom networks. AI also may be a boon for rural areas, which are seen as great locations for the increased data center capacity that will be needed to support the technology.
Net Neutrality Flip Flops. It’s only been about a year since the FCC voted to reinstate Net Neutrality rules and classify broadband as a telecommunications service. But the incoming chairman is vehemently opposed to those rules and that classification and, in the new administration, the rules are likely to be overturned once again. Meanwhile, some argue that a legislative solution is required to put an end to the ongoing flip-flops.
The End of the Affordable Connectivity Program and USF Reform. Congress didn’t re-up funding for the Affordable Connectivity Program (ACP), which paid up to $30 a month toward the cost of broadband service for low-income households. As a result, the program came to an end in May. Some argue that a replacement program should be part of broader efforts to reform the Universal Service Fund (USF) program, which includes the Lifeline low-income program, as well as the high-cost program for rural telecom/broadband, a school and libraries program and a rural healthcare program. The current method of funding the USF — largely as a percentage of voice phone bills — is becoming increasingly unsustainable. Several possible alternative funding methods have been suggested, even as opponents argue that the program is unconstitutional.
Yet Another Big Year for Mergers and Acquisitions. The past year was another big one for M&A — so big that once again, we will devote a separate round-up post to the topic. Look for an article on the top telecom M&A news of 2024 soon.
Looking Forward to 2025. USF reform, Net Neutrality, BEAD, and AI will all be on Telecompetitor’s radar for 2025, along with business and technology issues like broadband deployment, financing, and bundles. We look forward to covering these and other hot topics for you in the coming year.
