3 Reasons Subsidy-Free Builds Are Winning

Subsidy dependency is killing speed.

While everyone else fills out BEAD applications, the operators moving dirt have figured out something simple: build around grants, not toward them.

In this issue: 3 moves proving subsidy-free builds win on speed and terms, 2 shifts making grants less attractive – and one fiber f*ck up that proves aesthetics still matter.

1. State partnerships beat state grants.
California just tacked 500 new miles onto its open-access middle-mile build with American Dark Fiber. Instead of competing for grants, operators are leasing backbone capacity and focusing capital on last-mile – where the margins live.

The advantage: no application process, no compliance reporting, no clawback risk. Just backbone access at cost, and freedom to build your business model.

2. Customer contracts trump grant applications.
Consolidated closed a $1.34B asset-backed securitization secured by fiber subscribers. They’re financing builds like utilities, using customer revenue as collateral instead of chasing government handouts.

The advantage: your existing customers fund your expansion. You get better rates than grants, no strings attached, and you keep 100% ownership of what you build.

3. Private speed beats public process.
Metronet dropped $18.5M into Prescott Valley, AZ – their third Arizona city in 12 months. While competitors polish grant proposals, the yard signs are up and customers are connecting.

The advantage: first fiber in wins. Market timing beats perfect financing every time.

1. BEAD is shrinking, not growing.
Challenge processes have cut 57% of unserved locations nationwide, doubling the cost per remaining home. What looked like a massive opportunity is now an expensive, complicated mess with fewer viable projects.

The move: smart operators are pivoting to private builds before the math gets worse.

2. “Tech-neutral” means satellite-first.
Louisiana, Nevada, and others are steering BEAD cash to LEO satellites after NTIA blessed tech-neutral funding. Fiber operators aren’t just competing for grants – they’re losing them to cheaper, faster-to-deploy technologies.

The shift: government money is following the path of least resistance. If you’re counting on subsidies, you’re counting on beating satellites on speed and cost.

When your fiber install looks like a trip wire across someone’s basement window, you’ve missed the point of “underground” installation.

What's New With Us?

We’ll be at Fiber Connect in Nashville next week (June 1–4) — and if you’re there, don’t miss our midsummer celebration on Tuesday afternoon at Booth 1128. We’ll be serving traditional herring on cracker bread and Swedish snaps! Come by, grab a taste, and say hi.

Also on the calendar:

• SCTE Hill Country Chapter – Round Rock, TX – June 11–12

• Broadband Communities Summit – Houston, TX – June 23–25

Subsidies create dependency. Partnerships create opportunity.

The operators building without grants aren’t just moving faster — they’re running simpler projects, with fewer approvals, tighter scopes, and faster mobilization. That’s not just better for the balance sheet — it’s better for the crews on the ground.

Stay sharp,
Tim