The Workforce Drain: How Prime Contractors Are Undermining the Telecom Industry’s Future
The U.S. telecom industry is at a critical inflection point. Billions are being poured into fiber and broadband expansion by large ISPs and public funding programs like BEAD and RDOF. But while the investment headlines sound promising, there’s a quieter, more dangerous issue happening on the ground: the slow, systematic erosion of the subcontractor workforce that this entire buildout depends on.
Prime contractors — particularly some of the largest players — have created conditions that are driving experienced small and mid-sized subcontractors out of the market. These are the very companies that have been building our networks, maintaining local crews, training new workers, and responding quickly when communities need help. They’re not just vendors — they’re the workforce backbone.
But here’s what they’re facing:
Chronic delays in payment, sometimes stretching 90–120 days, despite net-30 contract terms.
Unclear or constantly shifting project directives, which lead to wasted time, rework, and burned budgets.
One-sided risk structures where subs absorb liability, permitting delays, and price fluctuations — with no recourse.
Race-to-the-bottom pricing models that squeeze margins so tight, it’s impossible to invest in training or equipment.
When you compound all of that with a lack of communication or respect, it’s no wonder skilled subcontractors are walking away. And when they go, they don’t come back. Their crews disperse. The trucks are sold. The know-how is lost.
And make no mistake — this isn’t just a subcontractor problem. This is a national broadband infrastructure problem.
If we can’t retain and support the workforce needed to build fiber, no amount of money will matter. We’ll be stuck with half-finished builds, blown budgets, and projects that look great in press releases but fall apart in practice.
Alarming Trends:
Decline of U.S.-Based Telecom Equipment Firms: Over the past two decades, nearly 75% of U.S.-based telecom sub contractors have either been acquired or ceased operations, indicating a significant contraction in the domestic telecom sector.
Shift in Prime-Subcontractor Revenue Splits: Traditionally, subcontractors received about 70% of the revenue from projects, reflecting their substantial role in execution. However, recent trends show this split deteriorating to as low as 60/40, with primes not providing additional value to justify the larger share.
Delayed Payments: Subcontractors often face payment delays averaging 146 days, despite net-30 contract terms, severely impacting their cash flow and operational stability.
So who needs to step up?
ISPs must take ownership. It’s not enough to write a check to a prime and look the other way. You need to police your primes and demand fair, ethical treatment of subs. After all, it’s your name on the project.
State and federal agencies need to include enforcement mechanisms in grant disbursements and contractor accountability into RFP scoring. If primes aren’t supporting a sustainable workforce, they shouldn’t be getting taxpayer dollars.
Industry associations and regulators must push for transparency in subcontractor agreements, timely pay requirements, and better dispute resolution paths.
This isn’t about playing favorites — it’s about protecting the very foundation of our broadband future. The skilled fiber techs, boring crews, linemen, and splicers are the ones who actually make it happen. If we let exploitative practices push them out of the industry, we’ll all be left holding the bag.
It’s time for change. Because if we don’t fix this workforce crisis now, there won’t be anyone left to build the networks of tomorrow.
By: Mark Ramsey