Wall Street is betting on increased broadband capacity via landlines. Private equity firms are expected to invest $1.9 trillion by 2026 in broadband infrastructures driven by AI requirements, high-speed Internet for remote work and entertainment, and the expansion of broadband services in rural and suburban areas that are currently poorly served.
Plus, satellites — which have the potential to cover remote areas — are not able to support large amount of data traffic as reliably as fiber-optic cable.
For the landline upgrades and expansion, Telecom companies have so far tripled the number of “fiber bonds” they borrowed last year. Bonds give lenders more protections than the unsecured debt that companies used in the past to build fiber-optic networks.
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