US Facing Sluggish Fiber Optic Market in Election Year?

Although the US broadband industry is preparing for 2025, we may see a significant amount of fiber deployment and consolidation activities. Fierce Network wants to know if these activities will slow down as the election approaches and the end of the year approaches. The answer is: yes and no.

–The normal slowdown in the telecommunications industry may not affect the merger and acquisition activities in the fiber broadband field.

–The CEO of OneVizion observed a typical slowdown in the broadband industry due to elections and year-end reasons.

–However, the CEO of FiberLight stated that he has not seen a decrease in interest in integrating fiber optic companies through transactions.

Fiber optic deployment slows down

OneVizion CEO John Patton said that his company is currently seeing a slowdown in the IT department’s business, with a slower pace of IT and fiber optic construction system replacement. As people are watching to see who will win the presidential election. When asked if the competition between Trump and Harris this year is special, Patton said it’s not because he sees it every four years.

He pointed out that the national election will lead to a stagnation in November. And then telecommunications companies usually do not make major procurement decisions in December. Because they need to update and settle accounts on their computer systems at the end of the year. “This is just a cycle that we are familiar with in the American business world,” he said.

Patton speculates that if Trump wins the presidency, it may have a negative impact on the BEAD (Broadband Equity, Access, and Deployment Fund) project.

Considering that BEAD is part of the bipartisan Infrastructure Investment and Employment Act, Fierce asked how this possibility could become true. Patton said Trump could appoint a new BEAD leader at the National Telecommunications and Information Administration (NTIA) in the United States and instruct them to “delay” the plan.

Will the integration of fiber optic companies slow down?

In addition to the possible slowdown in the broadband industry this autumn, we also want to know if the integration of fiber optic companies will slow down.

This year has witnessed some significant integration activities. It includes Verizon’s $20 billion all cash acquisition of Frontier, T-Mobile’s joint ventures with Lumos and Metronet, and AT&T’s expansion plans with its Gigapower joint venture.

Just last week, Reuters reported that Zayo and TPG are passionate about Crown Castle’s fiber optic and Small Cell assets. It could be worth nearly $10 billion. Segra also announced the acquisition of Everstream’s all fiber network in the St. Louis metropolitan area.

But considering the uncertainty of the election results and the general year-end closure activities, will all these activities be suspended for the rest of this year?

Bill Major, CEO of FiberLight, a fiber optic operator, does not think so. Major has been predicting that there will be many integrations in the field of fiber broadband.

Of course, everyone is curious about what the outcome of the election will be. However, from a regulatory perspective, both the former Trump and Biden administrations were “favorable” for broadband integration.
“Under the current or previous government, merger and acquisition activities have not slowed down,” he said. “Ultimately, regardless of who is elected, integration will continue.”

Major said that FiberLight is currently preparing for an acquisition and hopes to announce it next year. This is a very unique asset that will put us in a favorable position,” he said. “It’s 100% fiber optic.”
Major also has his own views on T-Mobile’s acquisition of two fiber optic companies. Recently, T-Mobile CEO Mike Sievert said that the company will no longer purchase fiber optic companies. But is it really credible for Sievert to say such things? Before announcing the Lumos Metronet deal, Sievert also downplayed the company’s interest in fiber optics.

Major concluded, “I think they have made everyone who owns a fiber optic company have this idea:’Come and acquire me.'”