Our latest white paper delves into how to manage the global fibre shortage and how procuring the right technology is key to future success. We explore why technology choice and procurement strategy must now go hand in hand. With hyperscale data centre growth, AI expansion and broadband upgrades placing sustained pressure on global supply, resilient sourcing models and higher-utilisation fibre solutions are becoming critical to maintaining momentum.
Optical fibre shortages are nothing new; previous industry booms have led to supply issues across the telecoms sector. Back at the turn of the millennium, huge demand from the fast-growing telecoms market led to a global shortage of fibre, as demand massively outstripped supply.
Now, new pressures on the telecoms industry are leading businesses into a similar position to the one seen in 2000. These include: the rapid deployment of data centres (DC); the growth of AI and cloud computing; and the impact of the United States’ rapid deployment of fibre upgrades.
Fibre shortages don’t just cause immediate supply chain challenges; they also lead to wider business planning difficulties, as builds are delayed or halted, plus increased competition for products inevitably leads to higher prices. The ‘just-in-time’ model of procurement and forecasting is no longer relevant to the telecoms industry due to increasing demands on the supply chain.
Operators can achieve more with less by leveraging advanced fibre technologies if they are prepared to source the best products and invest at the design stage. Working through a trusted solutions partner such as Altnets can strengthen supply chain resilience and provide access to diversified manufacturing relationships.
We’ve already seen a surge in the price of fibre cable, which has created market pressure. According to data collected by CRU in February 2026, some fibre solutions have increased in price by 30% since the beginning of 2025.[1] DCs are the driving force behind increased demand for fibre. DCs require five to ten times the fibre optics of traditional cloud computing facilities, with global DC demand increasing by a whopping 75.9% year-on-year since 2025. Future forecasts predict that DC fibre demand will be 30% of the global supply by next year.
As telecoms procurement teams look to source products for their builds, they have a decision to make on what products they invest in. The DC industry is eyeing products with higher fibre utilisation per strand, known as multi-core or ribbon fibre. Although with a far higher CapEx spend required, they have the ability to take a far higher capacity of data without adding any physical fibre.
However, in the current climate, product selection cannot be separated from supply chain strategy. Access to higher-specification fibre at scale depends not only on budget allocation, but on the resilience and structure of the procurement model supporting it. There is, in fact, a massive opportunity for telecoms companies to look ahead to the future demand in DC and smart technology, as well as FTTx, and design their decision-making to facilitate this.
That decision-making extends beyond technical specification to how materials are secured. Working alongside Altnets can introduce a more flexible sourcing structure, helping operators navigate allocation pressures while preserving access to next-generation products.
Multi-core fibre has the ability to increase its bandwidth ten times overnight within the same footprint of traditional fibre cable, and without the need for cable replacement. It breaks the density limitations of traditional solid core fibre cables. As well as serving the immediate needs of the DC, it retains capacity for inevitable increased demand in the future. Most crucially, this keeps networks relevant in an ever-advancing industry where cable lifespans can exceed 50 years. Maximising the output of existing duct space has the additional benefit of lowering the carbon footprint of a build and supporting ESG targets.
Alongside investing in innovative and future-proofed technology, telecoms operators also need to consider their commercial and structural approach to procurement. There are several tactics to consider. Firstly, securing multi-year contracts rather than purchasing fibre on a project-by-project basis; suppliers will allocate products to those with long-term contracts first. This locks in price points and protects against raw material spikes in a tightening market, leading to long-term CapEx savings.
Secondly, regionalising procurement is a powerful solution to securing supply chains. Fibre manufacturing is predominantly located in Europe, North America and Asia. In light of current geopolitical tensions, which show no signs of easing, and challenging trade policies, supply chains are at risk of logistics disruption and export tariffs.
Working with partners such as Altnets that maintain established relationships across multiple manufacturing regions can further reduce exposure to geopolitical and logistics risk, while preserving flexibility if supply conditions shift.
Additionally, standardising designs across multiple projects is desirable as it allows for larger orders to be placed with supply partners and streamlines the procurement process. Using similar product ranges within a range of builds means working with fewer cable SKUs (Stock Keeping Units), leading to easier installation and maintenance, thereby giving projects further security.
The telecoms market is going through a clear transition from laying more fibre to focusing on extracting more capacity per fibre laid. Fibre cable shortages are a current market reality and telecoms operators have a range of ways to mitigate the impact of this, through smart product procurement and commercial strategies. Selecting emerging tech for a build not only gives projects a technical edge, but actively mitigates supply chain constraints.
Operators that prioritise future planning, rather than focusing on the current state of play, will stay ahead of the curve during this period. Accessing the technology needed now and in years to come is vital for delivering the networks the UK needs to stay relevant as an economy.
Read the full white paper here.
[1]https://www.oyii.net/news/structural-price-rally-in-fiber-optic-cables-ai-powered-demand-supply-constraints-2026-forecast/
