USA: Disputes over Fiber Optic Network Construction in Rural Areas

The new US administration has set a goal to modernize the country's internet infrastructure, while broadband initiatives have been launched in several states. The aim is also to provide faster internet to rural regions. However, this effort faces opposition from telecom operators.

AT&T has expressed clear opposition to the construction of fiber optic networks in rural areas. The telecommunications giant suggests that an upload speed of 10 Mbit/s is sufficient for these regions. In 2015, the US telecommunications authority raised the definition of "broadband" from 10 to 25 megabits per second (Mbit/s) download and 3 Mbit/s upload. Fiber networks offer a faster alternative, but the company is hesitant about their expansion.

In the US, the cost of fiber connections in rural areas is linked to income levels. Currently, the market is dominated by three main players: AT&T, Comcast, and Verizon. AT&T prefers optimizing the mobile network for rural areas rather than expanding fiber, provided that basic network infrastructure exists.

AT&T views the expansion of fiber optic networks in rural areas as "overbuilding" that would waste crucial subsidies and could lead to misallocation of private funds. The company is focusing on urban areas where infrastructure is more established. Meanwhile, AT&T has increased tariffs in rural areas and maintains old copper lines, even as service quality may decline.