Key Takeaways and Looking Ahead
The Wireless Infrastructure Association’s (WIA) ConnectX Expo, held May 14-16 at the Georgia World Congress Center in Atlanta, GA, brought together key players in the wired and wireless infrastructure landscape. VETRO, represented by Sean Dundon, leveraged the event to forge valuable connections with investors, service providers, partners, and customers. The expo provided a critical platform to gauge current market conditions and gain insights into the evolving trends shaping the industry.
Equity and Infrastructure Investment: The Cornerstones of Growth
This year’s ConnectX highlighted the pivotal role of equity and infrastructure fund investments in fueling the expansion of 5G networks and fiber deployments. Discussions centered on the latest funding news from Washington, D.C., along with the challenges posed by permitting processes. The viability of open access/wholesale models also emerged as a key theme, with experts analyzing their potential impact on the industry.
Financing Fiber Builds: A Granular Approach
A captivating panel discussion on “Financing Fiber Builds” kicked off the first day. The session featured representatives from private equity firms, a major utility, and an engineering firm. Valuable insights were gleaned regarding the most efficient deployment strategies, with co-building alongside utilities emerging as a preferred approach. The panelists emphasized the importance of “future-proofing” fiber networks by incorporating excess capacity.
However, the discussion also acknowledged the evolving economic landscape. The panel highlighted the significant impact of rising interest rates, which have effectively doubled the per-passing cost underwriting for private equity-funded fiber builds, rendering them less attractive investments.
Open Access FTTH: Opportunities and Challenges
The North American wholesale and open-access fiber-to-the-home (FTTH) market remains nascent, yet promising. Panelists identified tailwinds driving its potential growth, including the Broadband Equity, Access, and Deployment (BEAD) program, the transition of wireless internet service providers (WISPs) to fixed wireless internet service providers (FISPs), the deployment of infrastructure fund resources, and the ongoing expansion of municipal and utility fiber networks. However, challenges persist in the U.S. due to the limited presence of incumbent wholesale providers, hindering the establishment of a robust open-access model.
Consolidation on the Horizon: A Strategic Response
ConnectX underscored the inevitability of consolidation within the provider landscape. Mergers and acquisitions, along with strategic joint ventures, are anticipated to become increasingly prevalent in the coming years. This trend is primarily driven by the substantial financial demands associated with financing and operating fiber optic networks. By combining resources and expertise, providers can streamline operations, reduce costs, and significantly accelerate deployment efforts.
Overall, ConnectX 2024 served as a valuable forum for industry leaders to exchange ideas and address critical challenges facing the wired and wireless infrastructure industry. The insights gleaned from the event provide VETRO and other stakeholders with a comprehensive understanding of the current market dynamics and the strategic direction needed to navigate the evolving landscape.
About VETRO
At VETRO, we believe visualizing data unlocks hidden potential, radically simplifying the way businesses operate and digitizing the future of connectivity. We focus on empowering network operators with unparalleled clarity and control over their fiber networks, enabling them to move faster, better, and more efficiently than ever before. Our revolutionary platform isn’t just software – it’s the physical network asset system of record, offering unprecedented visibility and control from strategic planning to daily operations. We empower our customers to bridge the digital divide at a rapid pace, unlock unforeseen opportunities, and squeeze the maximum value from their networks. Let’s illuminate the unseen, digitize the way we connect, and shape the future of connectivity, together.
