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Rising labor costs, materials pricing, and permitting delays are reshaping fiber deployment strategies, according to a new study.
Edited by Brad Randall, Broadband Communities
New data released today by the Fiber Broadband Association (FBA) suggests fiber optic networks continue to spread rapidly across the United States, even as the cost of deployment climbs.
The association’s 2025 Fiber Deployment Cost Annual Report, prepared by consultancy Cartesian, estimates fiber is now available to more than 60% of U.S. households and that 11.8 million new homes gained access in 2025.
But the study also found rising expenses: 92% of surveyed operators and contractors reported higher costs this year, the FBA said today.
Median underground deployment reached $18 per foot, while aerial installations averaged $8 per foot, with year-over-year increases of about 3% for underground work and 14% for aerial.
“Fiber is the foundation of America’s digital future,” said Deborah Kish, vice president of research and workforce development at the FBA, describing the report as a planning tool for policymakers and builders.
Cartesian’s Megan Corriveau added that “rising labor costs, materials pricing, and permitting delays are reshaping deployment strategies,” highlighting growing complexity in network economics.
Labor emerged as the dominant driver of cost in the survey, accounting for roughly 72% of underground deployment costs and 64% for aerial. The report also points to construction technique as a major variable: laying fiber directly underground is roughly 40% cheaper than placing it in a new conduit but may carry higher upkeep risks, while trenching proved the most expensive method, about 60% costlier than plowing and 6% more than directional boring.
Looking ahead, respondents expect costs to continue creeping up: 88% forecast further increases in 2026, citing labor and material pressures as well as permitting and make-ready expenses.
Our staff edited this report, which AI tools helped generate.
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