Significant investments are being made in broadband infrastructure with the goal of expanding fiber optic networks into rural and underserved U.S. markets. The high bandwidth and low latency of fiber optics enable efficient data transmission at higher speeds, which are becoming more crucial in light of the growing demand for AI applications.

Fiber-to-the-home (FTTH) coverage in the U.S. is expected to rise from approximately 50% to 80% of households by 2028, spurred by recent investments across various sectors. Private equity firms have committed billions toward the purchase and subsequent buildout of smaller regional broadband providers so they can reach more households. Existing telecom companies are also spending capital, demonstrated by AT&T's recent announcement to add 5 million locations within the next decade and by Verizon and Frontier pursuing similarly ambitious growth strategies.

The Broadband Equity, Access, and Deployment (BEAD) program has been an important catalyst in funding these initiatives – following efforts by the FCC and NTIA to secure the allocation of $42.45 billion toward nationwide broadband access. The future availability of such funds has recently been questioned, however, as political headwinds grow against government agencies and public spend. While any decision to withhold funds may be unpopular given strong bipartisan support for broadband funding thus far (on the state level, at least), it's not a certainty that promised upgrades for many underserved communities will ultimately materialize.

It is therefore worth re-emphasizing that the expansion of fiber optic networks should not be viewed as a superfluous tech upgrade—but rather a critical component of a broader national strategy designed to preserve market competition, stimulate economic growth, and ensure equitable access to digital resources currently lacking in many parts of our country. As generative AI looks to deliver on its promise to transform industries, the ongoing buildout of fiber optic networks will be essential.