
The next generation of wireless connection is currently being deployed. Telecom service providers and telecom companies are unleashing various bands of 5G signal, bringing about the faster, more robust connections required to power the Internet of Things. One might think that the wireless future is just that; wireless. That isn’t the case.
As the industry saying goes, the road to 5G is paved with fiber. Previous generations of wireless technology were able to utilize existing infrastructure to carry signal. This latest generation is not. Existing copper wire is incapable of handling the speed capacity brought by 5G. Fortunately, there is a solution in the form of fiber optic cable.
Understanding 5G and Its Growth
The fifth generation of wireless technology, known as 5G, is set to revolutionize the way we connect and interact with the world. With speeds estimated to be 10 to 100 times faster than 4G, 5G will enable the development of new technologies and industries, significantly impacting the economy and society. One of the most exciting aspects of 5G is its ability to support the “Internet of Things” (IoT), allowing up to 1 million devices per square kilometer to communicate wirelessly, compared to just 60,000 devices per square kilometer supported by 4G networks.
5G operates using a broader range of radio frequencies than its predecessors, which allows for greater data transmission and connectivity. There are three types of 5G services: low band, mid band, and high band (millimeter wave). Low band 5G offers slower speeds but covers a larger area, making it ideal for rural regions. Mid band 5G provides a balance of speed and coverage, while high band 5G delivers the fastest speeds but with a smaller coverage area, perfect for densely populated urban environments.
The economic impact of 5G is expected to be substantial. It is estimated that 5G will add $1.5 trillion to the US GDP by 2030, creating 4.5 million new telecommunications jobs. This growth underscores the importance of efficient and effective deployment methods, such as microtrenching, to lay the necessary fiber optic infrastructure.
Fiber optic cable for telecom construction companies
Fiber optic cable may not be a new technology, but it has shown to be the most capable means of transporting the amount of data 5G requires. Copper wire maxes out at a data transfer speed of around 40 Gbps. Fiber is capable of hundreds of Tbps. Fiber is also able to transmit much further lengths; almost 25 miles compared to copper’s limitation of 330 feet.
It is going to take an immense amount of fiber optic cable to help the country get connected at 5G speeds. In fact, it’s estimated that it will take 1.4 million miles of fiber to power the 25 largest cities in the US. There is expected to be around $250 billion invested in fiber optic cable in between 2020 and 2025. Telecom construction companies play a crucial role in laying these fiber optic cables to support the rapid deployment of 5G networks.
The cable can be distributed by many means. Aerial line is mounted on utility poles. Long stretches have been laid using traditional trenching methods. These methods work well in certain situations, but a relatively new technique has proven to be the best in urban environments; microtrenching.
What is microtrenching?
Just as the name implies, a microtrench is simply a small trench. Microtrenching is typically done when the surface has already been covered by asphalt or concrete. It is less invasive and faster than typical trenching. It is also less likely to cause problems with existing underground utilities due to the small trench size. These factors make it ideal for use in urban environments. Cell tower construction companies often use microtrenching for laying fiber optic cables.
How does it work?
A microtrenching machine cuts a small trench in the existing surface. This cut is typically 1 to 2 inches wide and less than two feet deep. While cutting, the same machine vacuums out the material, leaving a clean trench as it moves along. The fiber is then installed in the new trench, either in a its own protective coating or blown through conduit.
After the fiber install is complete, the trench is refilled in a process called reinstatement. Various materials are used for fill. In some cases, asphalt is simply poured in the chasm. Newer techniques involve pouring a resin in the trench, called infill resin. A bright orange layer is poured in first, meant to alert any future excavators about the wire below. Pigment is added to the top layers of resin so it can closely match the surface that surrounds it. When done right, a microtrench is barely noticeable when complete.
How is microtrenching different than traditional trenching?
There are a few ways microtrenching differs from older techniques. Traditional trenching by backhoe is limited in size by the bucket size of the machine. For a typical backhoe, the smallest bucket width was around 12 inches. Trenching by backhoe is also typically much deeper than microtrenching, and therefore more likely to accidentally hit other underground utilities.
Though capable of cutting a smaller trench than a backhoe, purpose built trenching machines still cut a wider patch than microtrenchers. Backhoes and trenching machines also become limited when unnatural surfaces come into play. For instance, when a roadway interrupts the trenching path of a traditional trenching machine there were two options. The first would be to cut and remove a portion of the road so you can lay your fiber. This is extremely time consuming, costly and inconvenient. The road may have to be closed for a period of time, which is annoying to drivers and could hurt local businesses. Telecom factoring services can help finance the costs associated with microtrenching and traditional trenching.
The other option would be to use horizontal boring. While less intrusive than the first option, it still requires a deep trench to be dug where the boring will start. The roadway should avoid interruption with this method, but there is an increased risk of accidentally hitting another utility, especially when boring across the right of way.
Challenges in 5G Microtrenching
While 5G microtrenching offers a faster and more cost-effective method for installing fiber optic cables, it is not without its challenges. One of the primary hurdles is the need for specialized equipment and trained personnel to execute the microtrenching process accurately. This specialized machinery and expertise ensure that the trenches are cut to the precise dimensions required for optimal fiber installation.
Navigating through existing infrastructure, such as roads, sidewalks, and utilities, presents another significant challenge. This process requires meticulous planning and coordination to avoid disrupting existing services and to ensure the safety and integrity of the installation. The complexity of urban environments, with their dense networks of underground utilities, makes this task even more daunting.
Additionally, the installation of small cells, which are essential for 5G networks, can be particularly challenging in areas with high population density or limited space. These small cells need to be strategically placed to ensure comprehensive coverage and optimal performance, adding another layer of complexity to the microtrenching process.
The benefits of microtrenching in the telecom industry
Laying fiber is the costliest part of expanding broadband across the country. Microtrenching is much faster and cheaper than traditional trenching methods. It is estimated to be one-third the cost of a traditional trench. As far as speed is concerned, Google Fiber estimates that it can run fiber to 50 homes per day using microtrenching but only 50 homes per month without it. Securing financing for microtrenching projects often depends on the invoice value, as lenders typically provide funding based on a percentage of the invoice value.
Unlike what was detailed previously, crossing a roadway by microtrench is a cinch. Only one lane of traffic would need to be disrupted at a time while trenching, and the process could easily be completed in a day. The narrowness of the trench even means that should an emergency arise, crews would be able to drive across the open trench without issue.
Microtrenching is also more environmentally friendly than other trenching methods. It uses less water and disrupts less land. The equipment is also smaller than traditional trenching machinery. Microtrenching crews are often smaller as well, sometimes just consisting of two people.
How Invoice Factoring Works
Invoice factoring is a financial solution that allows businesses to receive immediate payment for their outstanding invoices, providing a much-needed boost to cash flow. Here’s how it works:
- A business provides goods or services to a customer and sends an invoice for payment.
- The business sells the invoice to a factoring company at a discounted rate.
- The factoring company pays the business the discounted amount immediately.
- The factoring company then collects payment from the customer.
- Once the customer pays, the factoring company pays the business the remaining amount, minus a fee.
This process is particularly beneficial for businesses in the telecom industry, where slow-paying customers can create significant cash flow gaps. By leveraging invoice factoring, businesses can manage their cash flow effectively, ensuring they have the funds needed to take on new projects and cover operational expenses.
Benefits of Invoice Factoring for Telecom Contractors
Invoice factoring offers several key benefits for telecom contractors, making it an attractive financial solution:
- Improved Cash Flow: By receiving immediate payment for outstanding invoices, telecom contractors can improve their cash flow, allowing them to take on new projects and invest in necessary resources.
- Reduced Administrative Burden: Factoring companies handle the collection of payments from customers, freeing up time and resources for telecom contractors to focus on their core business activities.
- Increased Competitiveness: With improved cash flow, telecom contractors can take on more projects and compete more effectively in the market, positioning themselves as leaders in the telecom construction industry.
- Reduced Risk: Factoring companies assume the risk of non-payment by customers, providing telecom contractors with financial security and peace of mind.
By utilizing invoice factoring, telecom contractors can navigate the financial challenges of the industry, ensuring they have the liquidity needed to thrive in the competitive landscape of 5G deployment.
Factoring to fund your microtrenching jobs and improve cash flow
The use of microtrenching to expand the fiber network is not only becoming more widely used, at times it’s becoming the only method allowed. New York City, for example, has required microtrenching for most underground cable installations since 2013. With millions of miles of fiber destined for urban areas, microtrenching has a bright future. Accounts receivable play a crucial role in managing cash flow for microtrenching projects.
Unfortunately, the companies hiring telecom contractors to run their fiber tend to be slow at paying invoices. It’s situations like this where Factor Finders can help. We’ll get you paid quickly so you can fund the next project and continue paving the road to 5G. Accounts receivable financing can help manage cash flow for microtrenching projects by leveraging invoices as liquid assets. to start factoring your microtrenching invoices today!
Conclusion
The growth of 5G technology presents both opportunities and challenges for telecom contractors. As the demand for faster, more reliable connections increases, so does the need for efficient deployment methods like microtrenching. However, the financial strain caused by slow-paying customers can hinder progress. Invoice factoring offers a viable solution, enabling telecom contractors to manage their cash flow effectively and take advantage of the opportunities presented by the growth of 5G technology. By understanding how invoice factoring works and its benefits, telecom contractors can make informed decisions about their financial management and continue to lead the way in the telecom industry.
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