January 2021

Cable operators smashed records in 2020, adding more than 4 million customers in the first nine months of that year, fueled in part by the pandemic. But as hopes rise that COVID-19 will loosen its grip on the country, sending more people back to offices and schools and potentially softening broadband gains, many providers are looking toward the fringes of their footprints and extending their networks deeper into less-populated areas for growth. Extending the footprint, or making “edge-outs,” is nothing new for the industry.

The first phase of the Rural Digital Opportunity Fund (RDOF) was for unserved markets, so given their high-cost nature it makes sense that affordable fixed wireless played such a large role. In the subsequent round, we expect fixed wireless to play a reduced role in underserved areas, which tend to be more densely populated. Technically speaking, with enough government support, unserved markets can be connected with gigabit speeds via fixed wireless, but execution risks and the ability to secure letters of credit (LOCs) could impede an operator’s ability to deliver on its bid.