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Fiber Demand Remain Strong Based on Lumen’s Recent Announcement

Lumen Technologies, a prominent provider of AI-driven fiber connectivity solutions, has secured a new business worth $5 billion. This substantial investment demonstrates the escalating demand for advanced, high-speed internet services and underscores Lumen’s dedication to delivering state-of-the-art technology to its clientele. The company is also in active negotiations with customers to secure an additional $7 billion in sales opportunities to accommodate the heightened customer demand.

To address the surging demand, which includes Microsoft’s recent announcement, Lumen plans to more than double its intercity network miles over the next five years. The company will also provide access to a significant amount of installed dark fiber. Lumen has secured an agreement with Corning to be its preferred partner for its next-generation fiber-dense cable, which will support the increased data processing required by AI.

In response to this demand, Lumen has established a new Custom Networks division to manage its portfolio of Private Connectivity Fabric solutions and address additional interest from hyperscalers and other large organizations. This division will offer customized network solutions, including dark fiber, custom fiber routes, and digital services that securely connect companies’ data centers to protect data and support AI-intensive workloads. Lumen may also operate and maintain the network as part of its services.

What this mean for the fiber industry?

The demand for fiber continues to fulfill projects made by industry bodies such as the Research and Markets just 2 years ago. The fiber projections for the North American market at that time were to grow to $60 Billion by 2026, and the industry forecasts are well ahead of that.

In addition, the Fiber Broadband Association (FBA) recently announced a significant milestone in fiber deployments. Fiber to the home deployments now surpass around 52% of homes and businesses in the US. This has been boosted by both the $10 billion U.S. Treasury American Rescue Plan (ARP) and the $42.5 billion in NTIA BEAD funding.

Strong growth is expected to continue into 2028, making the fiber industry healthy and active for the foreseeable future.

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