Expanding the reach of global broadband

The growth of the internet has made broadband a necessity in the 21^st century. Enabling rapid connectivity across the globe has increased commerce and allows people in the most remote locations to access essential services like education and health care. But to provide broadband access in the most rural and remote areas in their jurisdictions, internet service providers (ISPs) need to work with their governments and leverage available funding and investment opportunities.

The reach of global mobile networks

As of 2025, mobile network subscriptions total an estimated 8.8 billion worldwide. The vast network coverage allows the most remote areas of the world to access wireless broadband. 5G, the latest generation of mobile broadband, serves about 32.6% of subscribers globally, while most of the world still relies on 4G technologies for access.

In a mature telecommunication market like the United States, nearly all customers have access to 4G, and a large majority have access to 5G. North America, Northeast Asia and Western Europe all have high adoption rates for their 5G networks, while emerging regions like Central and Eastern Europe, Latin America, the Middle East, Northern Africa, and sub-Saharan Africa have sub-10% adoption rates. Emerging regions need significant capital development to advance their broadband infrastructure and enable higher-performing 5G networks with faster speed and greater capacity.

North America leads in 5G network diffusion, and Northeast Asia is the only other region where 5G coverage exceeds 50%. The rollout of 6G remains distant for most regions, as upgrades to 4G networks are still needed around the world. The U.S. is not expected to start implementing its 6G network until at least 2030.

The evolution of global broadband networks

Homes and businesses access broadband through a variety of technologies:

• Cable: Coaxial cable made of copper
• Fiber: Fiber optic cables providing quick, reliable data transmission
• Digital subscriber line (DSL): Regular copper over telephone lines
• Fixed wireless: 5G wireless networks that require spectrum
• Satellite: Data transmission through radio waves, requiring spectrum

As of June 2024, the number of global users utilizing the newer, faster networks—like fiber, fixed wireless and satellites—roughly equaled the number using legacy cable and DSL networks. Replacing or improving telecommunication networks is a capital-intensive operation. Building out these networks to more remote areas, which are usually the least profitable and have less than ideal economies of scale, poses an additional challenge.

Countries will most likely need to subsidize the modernization of their telecommunications, an effort currently underway in the U.S. with the implementation of the Broadband Equity, Access, and Deployment (BEAD) Program and in Canada with the Universal Broadband Fund.

North American broadband network expansion

The U.S. federal government allocated $42.5 billion of BEAD funding as part of its Infrastructure Investment and Jobs Act of 2021 to expand the country’s telecommunication networks to reach underserved areas. All 50 states and six territories were allocated a portion of the funding and have created programs to select awardees and monitor regulatory compliance through infrastructure buildout projects. The allocation was based on the underserved population in each state, with the larger and more rural states receiving a higher percentage of the funds. The regulatory requirements include compliance with Build America, Buy America standards; cybersecurity planning aligned with National Institute of Standards and Technology guidelines; and adherence to financial standards aligned with the Department of Commerce and Uniform Administrative Guidance.

The BEAD Program is a direct investment by the U.S. government, which aims to provide reliable, universal coverage by 2030. But U.S. ISPs could increase indirect investment by leveraging tax savings resulting from recent tax reforms provided by the One Big Beautiful Bill Act (OBBBA) to build out their telecommunication networks. The biggest benefits that ISPs will receive from the OBBBA are the ability to immediately expense fixed asset additions and a more favorable interest expense deduction limitation.

The Canadian government is also striving to connect all its residents to high-speed internet. In 2020, it launched the 3.225 billion Canadian dollar Universal Broadband Fund with the goal of connecting 98% of Canadians to high-speed internet by 2026 and 100% by 2030. This fund finances projects up to CA$50 million for mobile internet projects and CA$750 million for large, high-impact projects.

The takeaway

As the world becomes more connected, the infrastructure required to maintain baseline speeds needs continual expansion and improvement. Private and public funding is providing opportunities to improve service to underserved areas—an effort requiring massive amounts of capital and efficiencies—while creating avenues to monetize the next generation of wireless and wired networks. Middle market and local ISPs will have opportunities to expand their footprints, while larger ISPs can achieve growth through acquisitions and consolidation of operations.