Broadband Equipment Suppliers See Huge Opportunities beyond Rural Broadband

Fiber optic suppliers have long hoped for revenue opportunities from the BEAD program and rural broadband expansion, but with the uncertainty of fiber optic prospects under new government policies, this trend is cooling down. Therefore, communication equipment suppliers are looking for other more promising markets.
Jeff Heynen, Vice President of Dell’Oro Group, said that most suppliers “maintain a relatively low-key attitude towards BEAD opportunities because many things are still in the air”. However, they anticipate delays because of the election results. So they have time to prepare.
Heynen told Fierce, “At least they said they will be prepared when the BEAD project receives funding and launches. But at the same time, they will continue to pursue other global opportunities like they have in the past few years.”

Suppliers adjust strategies in BEAD uncertainty

Adtran CEO Tom Stanton stated during the company’s fourth quarter earnings conference call that the BEAD plan is “not the primary driver of revenue in 2025.
He stated that service providers in the United States and Europe are still investing strongly in upgrading and expanding fiber optic coverage. In terms of optical networks, Adtran added 18 new customers this quarter, including fiber broadband providers, large enterprises, government agencies, and utility companies.
Stanton pointed out that some broadband operator customers are upgrading their backhaul networks to 100G or upgrading their regional transmission networks to 400G or 800G.
I think the BEAD problem itself still exists, but it is gradually fading out of people’s short-term plans, “Stanton said.
Tim Dyer, Vice President of Market Development and Private Networks at CommScope, told Fierce at MWC2025 that despite $42 billion in funding, BEAD’s support for fiber broadband is “just the tip of the iceberg”. He stated that there is still a large amount of private equity capital flowing in the market, and Deloitte expects private equity firms to be more active in 2025.
Besides waiting for BEAD, CommScope has been busy all along. The company acquired Casa Systems for $45.1 million last year, making progress in the field of cable access and developing dedicated 5G products. Like peers such as Nokia and Corning, CommScope is also looking for ways to meet the surge in demand for data centers.

Corning has repeatedly discussed at recent investor events how its fiber optic technology surpasses fiber to the home deployment. Specifically, the company hopes to eliminate residual copper cables in data center servers and replace them with fiber optic cables. However, Corning remains optimistic about BEAD, although “we cannot predict its next steps in development,” a spokesperson told us.
As the largest fiber optic cable manufacturer in the United States with end-to-end passive optical solutions, we have the capability to meet the needs of BEAD and other ‘Made in America’ programs, “said a representative from Corning.

Suppliers respond to market changes

The BABA requirements included in the Infrastructure, Investment and Jobs Act (IIJA) of 2021 stipulate that certain fiber optic components, such as optical network terminal ONTs and optical network unit ONUs, must be produced in the United States.
In the past few years, Nokia CommScope、 Major suppliers such as Corning and STL in India have expanded their manufacturing operations in the United States to comply with these federal regulations.
Heynen stated that with the emergence of more satellite and fixed wireless access deployments, the companies that may face the greatest business impact are “those American contract manufacturers that are increasing production capacity to support BABA compliant product production.
More challenging is that due to the US government’s tariff policies, suppliers may have to adjust their global supply chains. A report by Dell’Oro points out that global telecommunications infrastructure will experience a comprehensive decline in 2024, and predicts that 2025 will still be a challenging environment for suppliers, exacerbating uncertainty.