For Internet Service Providers (ISPs) looking to expand their networks, sourcing fiber is one of the most critical decisions. It’s not just about finding the right provider—it’s about understanding your options, setting up your network to scale, and leveraging the right relationships to get things done efficiently. In the telecom industry, who you know can be as important as what you know. Here are seven key factors every ISP should consider when sourcing fiber for their expansion projects.
1. Identify All Available Fiber Providers
The first step in sourcing fiber is identifying all the available providers in your target location. This ensures you have a comprehensive view of your options before making any decisions. Overlooking potential providers could mean missing out on better pricing or more reliable service.
Narrow down your options. Once you've identified all available providers, the challenge becomes filtering them down to the most viable partners that meet your specific needs. Not all providers will offer the right balance of cost, service level, and availability, so it's important to make informed comparisons.
Leverage inside connections for better results. Sourcing fiber isn’t just about cost and availability—it’s about relationships. Telecom is a "who you know" game. Having direct access to the right people who understand the system and have the tenure to navigate roadblocks can fast-track the process and unlock deals that others can't. Instead of calling a generic "1-800-Carrier" support line, build strategic relationships within the organization or partner with a broker who already has those connections. With insider access, you can avoid delays, secure competitive bids, and negotiate better terms. In short, the right connections can turn a drawn-out process into an efficient one.
2. Overcoming Barriers with Major Cable Providers
Large cable companies often see ISPs—especially wireless ones—as direct competitors. Because of this, they may deny services to ISPs looking to expand using their infrastructure, creating a significant roadblock for growth.
Why do cable providers refuse service? Major cable providers frequently restrict access to their networks to limit competition. A customer name including the word "broadband" or "internet" often is an immediate red flag for them. This can make it difficult for ISPs to obtain the fiber connections they need for expansion, particularly when expanding wireless services.
There's a way to bypass this hurdle. Fortunately, ISPs can still access the same network infrastructure by partnering with companies that have wholesale agreements in place with these major cable providers. This allows ISPs to leverage the same fiber network while enjoying the added support and flexibility of a wholesale provider that understands and values the ISP community.
3. The True Cost of Fiber Construction
The cost of sourcing fiber goes beyond the monthly fees for access and bandwidth—it can also involve significant upfront expenses for building out the infrastructure. If fiber isn’t already available at your desired location, you’ll need to account for construction costs.
What influences fiber construction costs? Distance to the nearest fiber line or splice point, whether the installation is underground or aerial, and any geographical challenges like rivers, highways, or dense urban areas will impact costs. Providers may charge more in areas where competition is low or where fiber access is scarce, while in other locations they may offer better pricing to expand their presence.
Longer contract terms will lower the payments. Most providers allow you to spread the upfront construction costs across your monthly charges, making them more manageable. If you're confident you won't be relocating, opting for an extended contract—often up to 60 months—can result in substantial savings. However, a 36-month contract typically offers the best balance between cost savings and flexibility.
Get multiple bids and increase your leverage. Always request bids from multiple carriers to ensure you're exploring all available options and price points. Certain deals are negotiable, and making providers compete against each other creates an opportunity for them to lower their prices to stay competitive. Carriers may reduce construction costs or even waive certain fees to win your business, especially in markets they’re eager to enter. Be sure you're actively pushing for these competitive offers—or working with a broker who has the right insider connections to do this on your behalf.
4. Understanding and Avoiding Unnecessary FUSF Fees
The Federal Universal Service Fund (FUSF) is designed to expand telecommunications access in underserved areas across the U.S. Managed by the FCC, telecom providers are required to contribute a percentage of their revenue to the fund, and these fees are typically passed on to end-user customers.
ISPs are often eligible for exemptions. Since ISPs provide internet services to others, rather than consuming them, they are often exempt from these charges under certain conditions. The FCC classifies certain services—like Wavelength, Switched Ethernet, and Dedicated Ethernet—as "private carriage". If these services are solely used to deliver internet to customers, they qualify for exemptions from FUSF fees as well as state and local taxes.
Providers incorrectly apply these fees anyways. Unless it's made clear to the carrier and an exemption form is completed, ISPs may be charged these fees anyways, leading to substantial unnecessary costs. For instance, with providers like Lumen (formerly CenturyLink), FUSF fees can reach as high as 30%. When combined with state and local taxes, this can inflate your bill by up to 40%!
Protect your business. It’s essential for ISPs to understand their eligibility for these exemptions and to actively dispute any incorrect fees. By partnering with knowledgeable experts who can access the right internal teams within a provider on your behalf, you can avoid overpaying, saving money and sidestepping the hassle of prolonged negotiations with carriers.
5. Transport vs. Dedicated Internet Access (DIA)
Choosing between Transport and Dedicated Internet Access (DIA) is a critical decision that depends on how your network is set up and what your current and future needs are.
Transport: Transport circuits are ideal for ISPs that already have an established core network and are looking to extend their reach. If you’re setting up a backhaul or connecting different parts of your own infrastructure (such as towers or data centers), Transport is often a more cost-effective option. It allows you to manage your own internet traffic, routing, and redundancy. Essentially, you get the bandwidth without internet service included, which is ideal if you're handling that separately through your own infrastructure.
DIA (Dedicated Internet Access): DIA is a great option for ISPs that are setting up a new network or expanding into new territories where simplicity and reliability are key. DIA includes both the bandwidth and internet service, delivered as a single solution. The carrier manages traffic routing and guarantees bandwidth, so you don’t need to worry about managing internet connectivity yourself. This is a reliable option for ISPs who may not yet have the infrastructure in place to handle their own routing or want a simple, scalable solution for connecting customers.
6. Building Reliable Networks Through Redundancy
Service reliability is crucial for ISPs to maintain customer trust and satisfaction, and network redundancy plays a vital role in ensuring consistent uptime. By building redundancy into your network, whether using diverse fiber routes or incorporating backup circuits from different providers, you ensure that if one line fails due to an outage or maintenance, your system automatically switches to a backup connection, minimizing downtime and keeping your end users connected.
Primary/Backup vs. Multi-Homed Circuits
Primary/Backup Circuits
In this approach, one circuit acts as the primary connection, while a secondary circuit remains on standby as a backup. If the primary circuit fails, the backup kicks in automatically.
Downside: The backup circuit sits idle most of the time, so its bandwidth isn't utilized unless the primary line goes down.
Multi-Homed Circuits
A more advanced approach involves setting up multi-homed circuits with protocols like Border Gateway Protocol (BGP). In this setup, both circuits are active, and BGP routes traffic across multiple paths, providing seamless failover if one connection fails.
Benefit: You can optimize the network by utilizing the extra bandwidth from the secondary connection, even when the primary circuit is functioning. This ensures you’re not wasting bandwidth while still maintaining reliable failover capabilities.
By employing BGP or similar solutions, ISPs can achieve more robust redundancy, ensuring service reliability while also maximizing available bandwidth.
7. Plan for Today, Prepare for Tomorrow: The Importance of Port Size
When expanding your network, consider not just your current bandwidth needs but also your future growth plans. One key factor in this is selecting the appropriate port size.
Start with the right port size. If you’re beginning with 1G in bandwidth, consider opting for a 10G port. This foresight allows for seamless upgrades as your bandwidth requirements increase over time.
Simplify future upgrades. Having a larger port size means that when you're ready to expand your capacity, the transition will be much simpler. For example, upgrading bandwidth from 1G to 5G on a 10G port typically requires no physical installation work, minimizing downtime and disruption.
Avoid complications. On the other hand, if you start with a 1G circuit on a 1G port, upgrading to higher bandwidth will often involve an actual installation, leading to delays, costs, and potential service interruptions.
In many cases, providers can offer an increased port size at no additional cost—sometimes, all it takes is asking the right person. By planning for future growth now, you ensure a more flexible and scalable network that can easily adapt to your evolving needs.
You Don’t Have to Navigate This Alone
Sourcing fiber for network expansion is tricky, especially when it comes to carrier negotiations and securing the best deals. Having the right connections makes all the difference. At CarrierFinder, we’ve spent decades building relationships to help you get better and faster results.
Get in touch to see how we can assist you with your next project, or take advantage of our free fiber search tool at www.carrierfinder.com.
Get Connected