The new presidential administration, market consolidation and the impending launch of 5G networks are driving many carriers to slow-play key decisions. As a result, major service providers like Zayo are entering holding patterns to wait and see what conclusions carriers will make.
In an interview with FierceTelecom, Zayo CEO Dan Caruso explained many carriers are waiting to gauge how the new government administration will manage core industry elements like regulations, the onslaught of 5G and continued consolidation in ILEC and CLEC markets.
“All these things kind of popped up almost in the short term, which isn’t causing a reduction in demand,” Caruso told reporters. “I think it will cause an increase in demand. But what it is doing is causing a pause in very near term decision making and I think that’s really what you’re seeing here, near term decision making about bigger, longer-term deals.”
From the perspective of providers like Zayo, this wait-and-see game from carriers may spark a massive jump in bandwidth demand. And as carriers seek out new opportunities to grow their networks and reach broader user bases, offering fiber solutions may be a means for differentiation among service providers. Time will tell, but in this landscape, independent fiber operators like Zayo may rise to the top with their ability to offer unique, fiber-focused products and expertise.
Read the full article from FierceTelecom to learn more about recent shifts in the fiber market and their impacts on investment trends.