Executive Summary
Cartesian received input to this study from across the industry and nation. Respondents spanned the fiber construction ecosystem from traditional providers to contractors and represent 35 states in total based on primary deployment locations. Information was gathered via phone interviews and online survey in October and November 2023.
While no two deployment projects are alike, we found many common themes.
The cost per foot of aerial deployment is less than half that of underground
Typical costs ranged from $11 to $24 per foot for underground deployment, and $4 to $9 per foot for aerial deployment. The median cost of deploying fiber underground was over twice the median cost of deploying fiber aerially at $16.25 and $6.49 respectively.
Labor accounts for over two-thirds of build costs
These costs were largely driven by labor, which comprised 50 – 90% of total cost, leaving materials to contribute 10% – 50%. The average split was 73% labor, 27% materials for underground construction, and 67% labor, 33% materials for aerial construction.
Population density has a large impact on the cost per foot of underground builds
Costs also related to population density; median costs increased with density. Extremely rural areas reported the lowest median underground cost ($12.50/ft), while urban areas reported the highest median ($23.25/ft), almost double that of the most rural scenarios. This generally held true for aerial deployments also, with a median of $5.00/ft for rural and $6.54/ft for urban areas.
Building in rocky areas costs twice as much as laying fiber in soft earth
Underground costs are also influenced by terrain; the denser and harder a terrain is, the more costly it becomes to dig under the surface. This was evidenced in the results, as underground deployment had a median cost of $10/ft in soft earth, but twice that in rocky terrain at $20/ft.
Where available, a choice of construction method can reduce cost
There are a variety of construction methods for underground build, each occupying its own niche. Trenching had the lowest reported median cost at $12/ft and plowing the highest median cost at $17/ft. Directional boring fell in the middle at a median of $15.10/ft, but also had the highest reported costs of any method.
The Western states had the highest cost ranges
Deployment costs varied by region for both aerial and underground methods, although regional differences tended to be more pronounced for underground construction. For both methods, the West had the highest typical costs, and the Northeast had the lowest typical costs.
Anticipated cost increases expected to cool slightly
While 46% of respondents reported “significant” cost increases in 2023 (greater than 10%), only 24% expect the same in 2024. Most respondents (59%) predict a slight price increase (less than 10%) and 13% expect costs to remain the same.
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