The Last-Mile Challenge: How MDU Connectivity Is Evolving in Today's Broadband Market

How MDU Connectivity Is Evolving in Today's Broadband Market

In the race to connect America, multi-dwelling units (MDUs) have emerged as both a significant opportunity and a persistent challenge for broadband providers. With approximately one-third of U.S. households residing in apartments and condominiums—representing over 35 million potential customers—MDUs constitute a substantial market that remains largely underserved.

The MDU Broadband Gap

The statistics paint a clear picture: 67% of multi-family housing buildings in the U.S. were constructed before 1980, meaning they weren't designed with modern connectivity in mind. Providers face a classic "last hundred feet" problem—they might have successfully deployed fiber to the curb or the building, or have installed a fixed wireless antenna on the roof, but getting from there into individual end-user units remains a critical hurdle.

This challenge is particularly acute for older buildings, where rewiring with new fiber can cost between $500 to $1,000 per unit—a substantial upfront investment with uncertain ROI timelines.

Beyond financial considerations, there's the time required for planning with landlords, design work, and installation—not to mention the disruption to tenants that may or may not be interested in the service, and the trouble that many property managers simply won't tolerate. These barriers have created a significant connectivity gap precisely when high-quality internet has become essential for work, education, and entertainment. While billions have already been invested in bringing broadband close to the end-user, this investment is not returned if it's not connected all the way.

For broadband providers, a single 16-unit building represents $700–$1600 in monthly recurring revenue, but the upfront costs and logistical challenges in connecting users in the buildings with new fiber to units often make such installation prohibitive.

The Hassle-Free Hybrid-Fiber Network Approach

As the industry grapples with these challenges, innovative approaches that leverage existing infrastructure rather than replacing it entirely are gaining traction. Hybrid-fiber technology extends high-speed connectivity over a building's existing coaxial or copper telephone wiring, boosting their performance to deliver fiber-grade, gigabit speeds.

"The traditional approach of rewiring buildings with fiber is like rebuilding a highway when all you need is to refresh the paving," says Tuvia Barlev, Chairman and CEO of Actelis Networks. "Our hybrid-fiber approach utilizes the infrastructure that's already in the walls to instantly deliver gigabit-level performance, without involving landlords or unwilling tenants. This allows providers to deploy in hours rather than weeks, at a fraction of the cost, while avoiding any disruption to residents."

Actelis' solution appeals to property managers because they don't require construction or tenant involvement. They're also environmentally friendly, with newer systems like Actelis' GigaLine 900 consuming as little as 5 watts of power—just a fraction of comparable alternatives.

Real-World Applications

The versatility of hybrid networking approaches makes them relevant across various MDU scenarios. In dense urban environments where older apartment buildings dominate, a mix of copper and coaxial wires may be found. The quality of legacy wires in such old buildings may be challenging and can cause significant interference between the lines—"crosstalk" that may make the service unstable and unreliable.

Actelis' GL900 introduces a unique "no crosstalk" technology, providing a reliable, fiber-grade service over both copper and coax—which is not available on alternative technologies.

In hospitality settings such as hotels, hybrid solutions enable property owners to upgrade connectivity without disrupting the guest experience. College campuses and military barracks represent another significant application, where outdated infrastructure can be leveraged rather than replaced.

The Evolving Market

As broadband providers compete for market share and federal programs like BEAD push for expanded connectivity, the MDU segment remains a critical frontier. The industry is experiencing a pragmatic shift away from the ideological "100% fiber everywhere" approach toward the more cost-effective, rapid-outcome-focused hybrid-fiber solutions.

"We're seeing major providers achieve 10-fold cost savings and dramatic acceleration of their deployment timelines by adopting hybrid-fiber approaches," notes Barlev. "The ability to instantly enable new revenue streams without waiting for construction work or dealing with tenant disruption has transformed the economics of serving MDUs."

For broadband providers weighing their options, the choice increasingly isn't between serving MDUs or not—it's about finding the most efficient pathway to connect these valuable customers. As the industry evolves, hybrid network approaches deliver the performance of fiber with the practicality that today's market demands, helping close America's persistent digital divide one building at a time.

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