The late-2021 passage of the Bipartisan Infrastructure Law provided substantial fuel for MSOs to close the digital divide, using public funding such as the $42.45 billion Broadband Equity, Access, and Deployment (BEAD) Program to expand broadband services to adjacent areas, enhance and upgrade existing services in regions considered underserved under the National Telecommunications and Information Administration (NTIA) 100/20 Mbps broadband definition, and open new greenfield markets where they have had no previous presence.
Cable MSOs have unique opportunities for network upgrades and expansion by leveraging the combination of their capital and available federal and state funding over the next five years. Though large-scale federal programs such as American Rescue Plan Act (ARPA), BEAD Program, Rural Digital Opportunity Fund (RDOF) and Rural Utility Service (RUS) are prominent because of their size and ongoing duration, numerous states are committing their local tax dollars to broadband projects, providing significant opportunities for operators.
Given the current environment and demand for reliable high-speed connectivity, there are also options for local governments to tap into the bond market for broadband projects.
Extending Existing Footprints
MSOs are using their existing network footprints as the foundation for expansion, conducting line extensions to adjacent territories, which may be anywhere from a few kilometers to more than 100 kilometers away from their closest headend or hub site. Using fiber and existing technology, MSOs can virtually extend their service offerings while leveraging the infrastructure. MSOs with proximity to unserved and underserved areas are in an excellent position to deliver services because they already have the combination of network and back-office operations experience and resources for constructing new plant and servicing customers sustainably.
In areas where MSOs have deployed HFC networks and currently provide a service deemed “underserved” by the current FCC 100/20 Mbps definition, providers can upgrade existing HFC networks to deploy enhanced DOCSIS 3.1 to meet FCC and any state broadband requirements for subscribers.
Upgrading underserved areas to support 100/20 Mbps and faster speeds is high on the list of ongoing capital expenditures for MSOs. Moving to deploy DOCSIS 3.1 and future versions is necessary to meet or exceed the new FCC broadband definition and continue to compete with offerings from existing and new fiber providers, 5G fixed wireless offerings, and alternatives such as satellites.
Enhancing Rural Reach
MSOs can leverage their existing fiber infrastructures to expand into rural locations through the availability of digital optical technology that offers greater reach and support for fiber-based endpoints. Analog optics is a technology not particularly well-suited for long distances, and long-distance optical links often require the construction of physical locations, or hub sites, along the route. The introduction of digital optics, multi-wavelength transport, and more-efficient dispersion compensation helps MSOs extend their broadband services more cost-effectively than they could in the past. For example, next-generation Erbium-doped fiber amplifiers (EDFAs) that support interstage dispersion allow cable operators to go longer distances with fewer EDFAs, reducing network complexity, power consumption and cost.
Regardless of the technologies involved, cable operators are well positioned to help close the digital divide across the country, irrespective of the area served. They have the foundational experience and infrastructure to deliver service to existing unserved communities and the technology available to do so cost-effectively without resorting to a more costly clean-sheet greenfield build.
MSOs are also leveraging the latest cable and fiber technologies to upgrade existing networks with minimal disruptions to communities by taking advantage of existing coax plants rather than deploying new media requiring significant truck rolls, trench digging and traffic upheavals.
Jay Lee is the chief technology and strategy officer for ATX Networks.
Jay LeeJay Lee is the chief technology and strategy officer for ATX Networks.
