Tech analysis: Broadband solutions matter for multifamily prestige

It’s no wonder residential community owners and managers need help when it comes to evaluating which high-speed internet options will meet resident demands now and in the future. Overwhelming consumer demand for fast, reliable, and secure broadband is disrupting the norm and rewriting expectations. The FCC recently changed its definition of broadband—which had been stuck at what industry analysts considered a truly archaic level for almost a decade. Now, to qualify as broadband, an internet service must have minimum download speed of 100 megabits per second (Mbps) and upload speed of 20 Mbps. This is 400% higher than the 25/3 Mbps speeds the FCC established back in 2015.

There are several well-known broadband technologies vying for residential internet market share: fiber optic, cable, fixed-wireless access, and satellite. Let’s compare the pros and cons of each technology in terms of speed, reliability, access, and long-term viability.

Cable

How it works: Cable transmits data over combination networks consisting of coaxial and fiber-optic cables. Cable internet uses the same cable and bandwidth that delivers cable television to residences.

Cons: Symmetrical upload and download speeds are not a norm; uploads speeds are slower than download speeds.

Consumer demand for cable TV continues to decline. An estimated 46.6 million households in the United States are expected to cut cords by the end of 2024. By the end of 2025, that number will jump to 75% of households who won’t have a traditional TV subscription. The reasons for cord cutting are significant, including cost savings, flexibility and choice for streaming content, and the advantages of switching to fast and reliable internet services.

Pros: Cable internet is available in most urban and suburban areas. Deployments in the 80’s-90’s built out wide coverage. Cable internet has faster speeds available than dial-up internet, DSL, or satellite internet.

Fixed wireless access: LTE and 5G networks

How it works: Fixed wireless access (FWA) transmits data through radio signals between fixed points, typically from cellular towers to fixed receivers such as antennas at customer locations.

Cons: Speeds can be as fast, but can degrade if blocked by objects such as buildings or trees, as FWA works best with a clear line of sight between towers and receivers. The distance from cell sites affects speed and can be more spread out in rural areas. Such networks also can be adversely affected by bad weather.

Pros: Still, FWA is popular in rural or mountainous regions where laying physical cables is difficult or costly.

Satellite

How it works: Satellite delivers an internet connection through orbiting satellites that link to an individually mounted satellite dish at a customer’s residence.

Cons: Speeds can meet the FCC’s new definition of broadband, but latency—or the time it takes for data to travel from its source to its destination and back again—can be higher than other technologies because of the vast distances the signals must travel. Weather can also affect the speed of satellite internet.

Pros: Like FWA, satellite can be useful in remote areas where other types of broadband access are impractical.

Fiber optic

How it works: Thin strands of glass transmit data rapidly over long distances with minimal loss of signal.

Cons: The cost and physical labor of building the infrastructure required to bring fiber-to-the-home (FTTH) and fiber-to-the-unit (FTTU) had, in the past, slowed adoption.

Pros: Fast speed, bandwidth, reliability, and low latency result in fast response times for real-time applications like online gaming or videoconferencing. Fiber is being adopted rapidly because so many residents’ activities—both work and play—can depend on ultra-fast and extremely reliable internet access.

Additionally, the physical lifespan of fiber-optic cables is quite long—as much as 20-40 years—which helps reduce the need to replace infrastructure and equipment as is frequently required when using other internet technologies. Indeed, one fiber-optic cable can outlive nine generations of copper cabling.

Fiber internet minimizes ecological damage to the planet and aids sustainability benefits. A white paper by Europacable found Fiber-GPON to be the most energy-efficient technology today because of its relatively low energy consumption, long lifespan, and future capabilities.

Future look at dominance for broadband

Here’s what it will look like in the future years according to research firm Kagan.

• Fiber optic: This technology is where most industry players and insiders are pinning their predictions. Last year (2023) saw the highest annual growth in FTTH in the United States. The Fiber Broadband Association’s (FBA’s) 2023 North America Fiber Provider Survey counted nine million homes being connected to fiber, surpassing the previous year’s record of 8.3 million.
• Cable: This segment is currently the largest and is predicted to retain 61.9% share of the broadband market through 2026, according to Kagan.
• FWA: By targeting both rural and non-rural territories, Kagan expects this segment to grow from 8% to 12.6% between 2022 and 2026.
• Satellite: Cost and speed limitations limit growth of this sector, which is expected to hold onto just 1% of the market through 2026, according to Kagan.

Why fiber is winning

Cable, FWA, and satellite technologies each have their advantages—particularly as short-term quick fixes in rural, remote, or hard-to-reach areas. Cable cost-effectively leverages existing infrastructure; FWA can be very rapidly deployed; and satellite can deliver round-the-globe coverage regardless of geography. Still, overall, fiber optic is growing rapidly.

“There was a brief period of time when several broadband technologies seemed appealing,” says Mike Janssen, Senior Manger Sales Engineering for Quantum Fiber. “But as customers demand higher speeds and requirements for reliability and bandwidth keep going up, fiber—especially with its future-ready capabilities—is top of mind.”

Fiber now connects almost 80 million U.S. homes, which represents more than 50% of residences as of 2023, according to the FBA. The FBA predicts this rapid growth will continue, estimating that 12 million additional homes will become connected to fiber in 2024 alone. Indeed, almost as many homes will be connected to fiber within the next five years as the total number to date, says the FBA.

Most industry experts are putting their money on one technology as the broadband winner—and that technology is fiber. According to a 2023 consumer study by Fiber Broadband Association (FBA) and RVA LLC Market Research and Consulting, fiber optic is the preferred connectivity technology for almost two-thirds of all internet users, outpacing both cable and wireless. Plus, fiber optic adds on average 4.9% to a home’s value.

Don’t assume all customer experiences are the same when choosing a fiber ISP partner for multifamily properties, says Janssen. “Installation and repairs are cumbersome experiences for your residents and can be harmful to the environment.” That’s why Quantum Fiber has a foundation of bringing exceptional, simplified customer experiences. “We pre-install everything, so residents can walk into their home, sign up, and be instantly connected.” says Janssen.

Fiber growth will continue to accelerate

Multifamily, residential community owners and managers are helping to drive this trend—by heeding ever-increasing demands for high-speed access from their residents and offering them such services directly through bulk contracts.

The future of fiber looks bright and clear, with its high predicted future growth, technological innovation, and ongoing investments by both government and service providers like Quantum Fiber. Fiber installations will only accelerate in the United States, thanks in part to the $1.2 trillion federal Infrastructure Investment and Jobs Act. This legislation earmarks money for areas in the country not yet served by broadband.

For more information about why fiber is the broadband technology of the future for multifamily communities, go to Q.com/connectedcommunities.

Check out these related resources:

• Read more about the advantages of fiber internet: Six cost-effective reasons fiber works for communities and multifamily properties.
• Read more on sustainability: Fiber can help builders and community managers meet today’s environmental challenges
• Read more on property value: Renting or selling? Enhance your property value with fiber internet.