AT&T was the top U.S. network service provider in fiber lit buildings, according to the Vertical Systems Group’s 2018 U.S. Fiber Lit Buildings Leaderboard. AT&T ranked #1 in Vertical Systems fiber lit buildings findings for the third consecutive year.
Verizon, Spectrum Enterprise, CenturyLink, Comcast, Cox, Crown Castle Fiber, Frontier, Zayo, Altice USA, and Windstream were the other fiber lit leaders. Each of those companies had 10,000 or more on-net U.S. fiber lit commercial buildings as of year-end 2018, according to VSG.
Vertical Systems Group defines a fiber lit building as a commercial site or data center that has on-net optical fiber connectivity to a network provider’s infrastructure, plus active service termination equipment onsite. Excluded for purpose of the Leaderboard rankings analysis are standalone cell towers, small cells not located in fiber lit buildings, near net buildings, buildings classified as coiled at curb or coiled in building, HFC-connected buildings, carrier central offices, residential buildings, and private or dark fiber installations.
“Following a flurry of mergers and acquisitions, fiber providers focused on new buildouts in 2018 to meet customer demand for higher speed dedicated access to business services and to support 5G pilots,” said Rosemary Cochran, principal of Vertical Systems Group, in a prepared statement. “Our research shows that while the majority of large and medium size commercial buildings in the U.S. are fiber lit with one or more providers, relatively few small multi-tenant buildings are fiber connected. Cable MSOs and regional network operators have been most actively targeting fiber investment opportunities in this underserved segment.”
Thirteen companies qualified for VSG’s 2018 “Challenge Tier” (listed here in alphabetical order): Atlantic Broadband, Cincinnati Bell, Cleareon, Cogent, Consolidated Communications, FiberLight, FirstLight, GTT, IFN, Logix Fiber Networks, Segra, Unite Private Networks, and Uniti Fiber. These fiber providers each qualify for the 2018 Challenge Tier with between 2,000 and 9,999 U.S. fiber lit commercial buildings.
Fiber Provider Research Summary:
-AT&T ranks #1 on the Fiber Lit Buildings LEADERBOARD for the third consecutive year.
-Frontier moves into the #8 position, up from ninth in the prior year.
-As a result, Zayo falls to #9, down from eighth position.
-Windstream enters the LEADERBOARD at #11, moving up from the Challenge Tier.
-Atlantic Broadband and GTT advance to the Challenge Tier, both moving up from the Market Player tier.
-Cincinnati Bell’s acquisition of Hawaiian Telecom, which was completed in 2018, is reflected in this analysis.
-Segra is the new brand name for the merged entity of Lumos Networks and Spirit Communications.
VSG “Market Players” include all other fiber providers with fewer than 2,000 U.S. commercial fiber lit buildings. The 2018 Market Players tier includes more than two hundred metro, regional and other fiber providers.
AT&T has expanded its AT&T Fiber service (Fiber to the Premises or FTTP) to 12 additional markets, including three in Texas and three in Florida. The telco’s FTTP offering now reaches more than 10 million locations in 84 metro areas, with 3 million of those having come this year. The company hopes to reach at least 14 million locations by mid-2019. That’s impressive!
AT&T now has fiber to more than 2 million business customer locations – with another 6 million locations within 1000 feet of fiber.
In a press release, the company said that mobile 5G success will rely on a quality fiber connection to the wireless towers or small cells, which then translate the fiber connection into an ultra-fast wireless signal for customers. Under the AT&T plans, eligible broadband customers can choose from a range of internet speed plans.
New research conducted for the Fiber Broadband Association by research firm RVA, LLC found 18.4 million U.S. fiber broadband homes as of September 2018, up from approximately 15 million a year earlier. Service providers made broadband available to a record-breaking 5.9 million new homes in the year ending September 2018, RVA said.
Network operators now market fiber broadband to 39.2 million U.S. homes, including 1.6 million homes that can get fiber broadband from two or more providers, according to the research.
AT&T says it offers Fiber to the premises in Santa Clara, CA (my home town for almost 49 years), but it’s not available anywhere in ny neighborhood. When I enter my zip code and address in the box on their website, I get no mention of fiber availability, but instead this box:
We found existing AT&T wireless service at your address.
This is my account and I’d like to see my offers and deals.
In other words, it’s a frustrating cop-out on FTTP for Santa Clara, CA. Suggest readers check AT&T Fiber availability for your address/zip code.
The availability of optical fiber connectivity to large and medium size commercial buildings in the U.S. jumped to 54.8% in 2017, based on latest research from Vertical Systems Group. AT&T, Verizon and CenturyLink’s aggressive build-outs of fiber into commercial buildings have continued to increase the availability of fiber connectivity.
As a result, the U.S. Fiber Gap has dropped to less than fifty percent (45.2%) for the first time. This annual benchmark quantifies the scope of fiber lit buildings in the U.S. with twenty or more employees. Encompassing more than two million individual business establishments, this base of commercial buildings maps directly to the addressable market for higher speed Carrier Ethernet, Cloud, Data Center, Hybrid VPN and emerging SDN-enabled services.
“More commercial U.S. buildings were newly lit with fiber during 2017 than in any other year since we initiated this research in 2004…..
AT&T told investors that it reached 400,000 business buildings with its own lit fiber facilities. Due to AT&T’s aggressive build-out, the service provider now covers over 1.8 million U.S. business customer locations. The telco said it is “adding thousands more buildings each month.”
CenturyLink and Verizon took the M&A path to enhance their on-net fiber holdings.
In a huge M&A deal, CenturyLink’s purchase of Level 3 increased its on-net building reach by nearly 75% to approximately 100,000 buildings, including 10,000 buildings in EMEA and Latin America, which gives the #3 U.S. telco a larger footprint to deliver carrier Ethernet and software-defined network services.
Verizon’s purchase of XO Communications gave the telco additional metro fiber networks in 40 major U.S. markets with over 4,000 on-net buildings and 1.2 million fiber miles.
Consolidated Communications also enhanced its on-net fiber holdings via its acquisition of FairPoint. By acquiring FairPoint, Consolidated immediately established itself as the ninth largest fiber player with a presence in 24 states and 8,000 on-net buildings.
This greater density will enable Consolidated to pursue more dark fiber and lit Ethernet service opportunities with a larger mix of business and wholesale customers.
What was also notable about this year’s M&A on-net building rush was the presence of nontraditional players like Uniti Fiber, which acquired two regional fiber providers, Southern Light and Hunt Telecom. These two deals give the REIT more fiber to pursue a mix of wireless, E-Rate, military, enterprise and wholesale opportunities, including fiber-to-the-tower backhaul, small cell networks and dark fiber. The acquisition of Southern Light in particular gives Uniti access to an additional 4,500 on-net locations.
Fueling Ethernet, 5G deployments
Having more available on-net fiber is another factor that plays into service providers’ U.S. Ethernet service reach and 5G plans by creating pipes through which wireless operators can build small cell and distributed antenna systems (DAS) to improve wireless coverage in business buildings.
Encompassing more than 2 million individual business establishments, this base of commercial buildings maps directly to the addressable market for higher speed carrier Ethernet, cloud, data center, hybrid VPN and emerging SDN-enabled business services.
Several of the service providers that have high on-net fiber building counts represent some of the largest Ethernet providers in the U.S.
On the Ethernet end, AT&T, CenturyLink and Verizon continue to demand high spots in the Ethernet space. However, the effect of M&A clearly has altered the Ethernet landscape.
CenturyLink knocked AT&T from its nearly 13-year reign as the top domestic Ethernet provider in the U.S. by completing its acquisition of Level 3 Communications. The service provider’s move up the ranks of VSG’s year-end 2017 U.S. Ethernet Leaderboard was also a function of continued growth in Ethernet ports for both companies. Earlier, Level 3 ranked second to AT&T and CenturyLink ranked fifth on the Mid-2017 U.S. Ethernet Leaderboard.
But Ethernet is only one factor driving ongoing on-net fiber builds. Cochran noted in an e-mail to FierceTelecom that “larger providers larger providers are accelerating deployments” to position themselves for 5G.
Verizon, for example, acquired WideOpenWest’s fiber assets in Chicago, securing fiber to more than 500 macro-cell wireless sites and more than 500 small-cell wireless sites in the area.
Crown Castle advanced its fiber standing by acquiring Lightower—a deal that gave it greater fiber density to address businesses and its traditional wireless business customers deploying small cells in buildings. This acquisition gave Crown Castle rights to approximately 60,000 route miles of fiber, with a presence in all the top 10 and 23 of the top 25 metro markets.
As the expectations for higher speed Ethernet, cloud and in-building wireless coverages continues to ramp, service providers will continue to further narrow the fiber gap inside buildings. But unlike the speculative builds of the 1990s, these are focused on bandwidth hungry applications that are showing no signs of slowing.
For this Vertical Systems Group analysis, a fiber lit building is defined as a commercial site or data center that has on-net optical fiber connectivity to a network provider’s infrastructure, plus active service termination equipment onsite. Excluded from this analysis are standalone cell towers, small cells not located in fiber lit buildings, near net buildings, buildings classified as coiled at curb or coiled in building, HFC-connected buildings, carrier central offices, residential buildings, and private or dark fiber installations.