SFA Research Corner: How Securitization Helps Connect Communities Through a “Series of Tubes”
article by Structured Finance Association
Fiber optic broadband infrastructure is poised for expansion, with growing consumer demand and government initiatives like the $42 billion Broadband Equity, Access, and Deployment (BEAD) program. Expansion, however, is capital-intensive. To fund this expansion, six broadband providers have turned to securitization as a more cost-effective funding option. On August 9, Frontier Communications issued $1.6 billion, backed by specific fiber assets and customer contracts, marking the largest Fiber ABS transaction to date. This issuance, upsized from $1 billion, contributes to the $6.3 billion currently outstanding in the Fiber ABS sector.