By Mike Dano
According to new data from the financial analysts at Cowen, some of the biggest fiber providers in the US – including AT&T, Altice USA, Consolidated Communications, Frontier Communications and Lumen Technologies – have cut back their fiber network expansion plans for
2023
“The reasons for the pullback vary,” the analysts wrote in a recent report for investors. “Naturally the capital markets have made a business case more challenging as rising rates will lower the project NPV [net present value]. Rising inflation costs are also impacting the IRR [internal rate of return]. Permitting and licensing continues to be a market-by-market challenge. Some, like Frontier, are recalibrating their build engine and focusing on efficiency.”
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