COVID-19 Driving Investment in ISPs, CoBank Says

Broadband merger and acquisitions are robust as investors seek to cash in on “society’s digital transformation” driven by the COVID-19 pandemic, CoBank reported. “Over the last year, investors have moved down market, targeting smaller rural operators who have replaced some or all of their copper networks with fiber,” CoBank said: “Institutional investors and strategic buyers have already acquired most of the mid-tier fiber transport companies.” The lender sees a new trend of investors buying wireless ISPs. Friday's report sees few risks: “There are simply too many underlying secular tailwinds for things to soften in a material way.” CoBank funds farm credit associations and rural communications infrastructure.