At the recent Metro Connect 2026, a significant gathering of fiber connectivity experts, data center operators, and their financial backers filled the venue. The event featured keynote speeches and panel discussions where experts shared bold predictions and insights. Among the speakers, Andrew Lipman, a telecom practice head at Morgan Lewis, highlighted key trends for 2026, emphasizing an optimistic outlook for broadband growth.
Lipman noted that the telecom industry is benefiting from an “optimistic macro environment” under favorable regulatory conditions in the US. The administration’s alignment in antitrust and tax structures is seen as supportive, particularly with incentives like bonus depreciation and R&D tax credits.
A major topic was the Broadband Equity, Access, and Deployment (BEAD) program, which allocates $42.45 billion to expand broadband in underserved US areas. Although funds were initially slow to materialize due to regulatory and approval delays, recent approvals, such as Louisiana’s $1.36 billion funding, mark progress. Analyst data suggests a focus on fiber deployments, with 65% of the funds going towards fiber, followed by satellite and fixed wireless solutions.
The event also spotlighted AI, a catalyst for fiber network expansion and data center growth. This technological shift brings challenges, most notably a skills shortage for tasks like fiber splicing. Lipman emphasizes the need for targeted training and greater workforce diversity to address this gap.
Mergers and acquisitions (M&A) dominated the telecom headlines in 2025, and this trend seems poised to continue. Lipman predicts ongoing consolidation, driven by a regulatory climate that’s more conducive to such transactions than in previous years. He also underscores the rising demand in the fiber-to-the-home (FTTH) sector, now a substantial market in the US, with considerable growth potential as many homes lack fiber connections.
Despite encouraging trends, data centers face scrutiny over their rising power demands. As public and congressional concerns mount, the industry must proactively address misconceptions and present a balanced view to mitigate backlash. Lipman asserts the importance of effective communication strategies to combat misinformation.
Finally, he reflected on the AI boom’s impact, asking whether it might surpass the influence of social media, smartphones, and even fundamental technologies like fire. The crux, as Lipman indicates, lies in distinguishing genuine opportunities from the hype and ensuring that investments are strategically sound.
