Broadband

Key industry trends and observations from our banking team

• Competition in rural broadband will intensify
  • Fixed-wireless access (FWA) continues to pressure fiber providers through aggressive pricing and bundled wireless offerings.
  • National carriers are using wireless plus home bundles to increase customer stickiness and reduce churn.
• AI-driven infrastructure spending will reshape demand
  • Rising investments in AI and digital infrastructure will heighten expectations for high-capacity, low-latency fiber networks across rural markets.
  • Co-ops planning new builds or expansions must incorporate the long-term bandwidth needs of both residents and enterprise customers.
• Market conditions will require sharper strategy
  • Co-ops will face increased pressure to refine build, partner, sell or buy decisions as the competitive landscape evolves.
  • Boards are encouraged to regularly review broadband positioning, including long-term operating model, capitalization strategy and market differentiation.
• Expect a more selective M&A environment in 2026
  • Broadband valuations have normalized, and buyers are more disciplined—prioritizing high-quality footprints, strong take rates and operational efficiency.
  • Co-ops with maturing networks may encounter new opportunities to partner, merge, divest or expand strategically.
• Co-ops will continue building on early stage success
  • Strong take-rates, mission alignment and fiber built for smart grid continue to make broadband a natural extension for many co-ops.
  • As competition increases, co-ops must maintain focus on service quality, local brand trust and community anchored value.