AI-Powered Fiber Expansions Deliver Major CapEx Savings

Are you ready to accelerate your network expansion and outpace the competition? Discover how to leverage AI and automation to target the right markets, streamline operations, and dramatically cut deployment timelines. In our latest blog, we explore how VCTI’s Broadband IQ™ platform puts McKinsey’s fiber rollout strategies into action—transforming complex planning into confident execution. Don’t miss the insights that could redefine your approach to network expansion.

We all know that deploying fiber-optic networks is a critical component of the race to provide universal high-speed internet access, yet the process is often hindered by high costs and complex logistics. Incumbents want to be “first to fiber” in key geographies, if they can, to stave off competitors, but need to ensure their costing and market analysis are solid before making a strategic mistake. To make smart decisions, service providers must have an accurate picture of where – and how – to build these new networks. But often, this is easier said than done.

That’s where VCTI’s Broadband IQ™ comes in. Our SaaS-driven platform and services offer a practical solution to address these challenges. Leveraging AI to assist service providers in identifying the most profitable opportunities for network expansion and optimizing deployment strategies, Broadband IQ is changing the game for service providers as they look to respond to grant opportunities quickly. ​

Broadband IQ aligns closely with the strategies outlined by McKinsey and Company in their article, "The Keys to Deploying Fiber Networks Faster and Cheaper." In this piece, McKinsey identifies four strategies to enhance the efficiency and cost-effectiveness of fiber rollouts:​

1. Utilize Artificial Intelligence (AI) for Market Targeting: AI can analyze various factors such as population density, household income, and existing infrastructure to identify markets that offer a favorable balance between potential penetration and deployment costs. This targeted approach ensures resources are allocated to areas with the highest return on investment. ​

2. Establish an Efficient Operating Model: Standardizing processes and harmonizing the technology stack across functions like network deployment, operations, IT, and procurement can drive coordination and efficiency. Implementing a centralized "nerve center" to oversee project pipelines can further streamline operations, potentially reducing deployment costs and accelerating timelines. ​

3. Automate Resource-Intensive Functions: Automation of tasks such as network planning and design can significantly reduce manual labor, leading to faster deployments and lower costs. By leveraging advanced technologies, companies can improve accuracy and efficiency in their operations. ​

4. Forge Long-Term Supplier Partnerships: Establishing enduring relationships with suppliers can ensure a stable supply chain, better pricing, and access to the latest technologies. These partnerships contribute to more predictable costs and improved deployment schedules. ​

According to McKinsey, implementing these strategies can accelerate deployment by up to 20 percent and reduce costs by 15-25 percent, with noticeable improvements within eight to sixteen months. ​

Broadband IQ can contribute to all of these improvements, but is especially relevant for number one – the use of AI for market assessment and targeting; and number three – automating resource-intensive processes.

By integrating Broadband IQ™ into their operations, service providers can achieve a more than 20 percent improvement in capital budget efficiency and significantly reduce the time required for planning and deployment.

For instance, assessing the viability of a 1,000-mile fiber deployment, which traditionally takes several months, can be accomplished in less than three weeks using Broadband IQ, all without necessitating field visits. ​

Key Features of Broadband IQ

• Market Assessment and Quantification: Broadband IQ evaluates geographic and demographic data to pinpoint high-value markets for expansion. By analyzing factors such as housing density, existing infrastructure, and competitive landscape, the platform enables providers to make informed decisions about where to invest. ​
• Address Integrity Mapping (AIM): This feature ensures accurate identification of serviceable locations, facilitating precise market sizing and efficient resource allocation. Accurate mapping reduces the risk of overbuilding or under-serving areas, thereby optimizing investment. ​
• Fiber IQ™ (including Pole IQ™ and Geology IQ™): Fiber IQ provides detailed assessments of deployment options by evaluating the viability of utility poles for aerial installations (Pole IQ™) and analyzing soil and rock conditions for underground deployments (Geology IQ™). These insights allow for accurate cost estimations and informed decisions on construction methods without the need for extensive field surveys. ​

Incorporating advanced tools like Broadband IQ™ aligns with McKinsey's recommendations by leveraging AI for market targeting, automating resource-intensive tasks, and enhancing operational efficiency. As the demand for high-speed internet continues to grow, adopting such innovative solutions will be crucial for service providers aiming to expand their networks rapidly and cost-effectively.​