--- title: "KorTerra Blog | The True Cost of Network Damage: Hidden Expenses Telecoms Can No Longer Ignore - KorTerra Blog" description: Every six minutes, an underground utility line is damaged somewhere in the U.S. For telecom providers, those incidents interrupt service and ripple across operations, budgets, and customer trust. image: https://korterra.com/hubfs/Imported_Blog_Media/Hidden-Expenses-Telecoms-Can-No-Longer-Ignore-scaled.jpg --- [![Korterra](https://korterra.com/hs-fs/hubfs/Korterra_Jan2026/Images/korterra-logo.png?width=236&height=52&name=korterra-logo.png "Korterra")](https://korterra.com) [![Korterra](https://korterra.com/hs-fs/hubfs/Korterra_Jan2026/Images/korterra-logo.png?width=236&height=52&name=korterra-logo.png "Korterra")](https://korterra.com) - [Products](https://korterra.com/products) - [Locate Management](https://korterra.com/products/locate-management) - [Risk Management](https://korterra.com/products/risk-management) - [Productivity Management](https://korterra.com/products/productivity-management) - 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[Blog](https://korterra.com/blog/tag/blog) - [News](https://korterra.com/blog/tag/news) - [Events](https://korterra.com/blog/tag/events) - [Case Studies](https://korterra.com/blog/tag/case-studies) - [Downloadable Resources](https://korterra.com/blog/tag/downloadable-resources) ### connect with us - - - - ## The True Cost of Network Damage: Hidden Expenses Telecoms Can No Longer Ignore ![The True Cost of Network Damage: Hidden Expenses Telecoms Can No Longer Ignore](https://korterra.com/hubfs/Imported_Blog_Media/Hidden-Expenses-Telecoms-Can-No-Longer-Ignore-scaled.jpg)   Every six minutes, an underground utility line is damaged somewhere in the U.S. For telecom providers, those incidents interrupt service and ripple across operations, budgets, and customer trust.  With the expansion of fiber networks to satisfy increasing connectivity demands, the potential for damage also rises. And while repair costs are steep enough on their own, the **hidden costs of network damage**, the ones that don’t show up on a balance sheet, can have an even greater long-term impact.  Forward-thinking organizations like **MCNC**, which operates more than **4,500 miles of fiber optic infrastructure** across North Carolina, are proving that proactive damage prevention is a strategic investment in operational resilience and cost control.    #### **The Obvious Costs: Damages You Can See** When a line is hit, the first expenses that come to mind are often tangible:  - Labor hours for emergency repair crews - Equipment and material replacement - Traffic control, permitting, and restoration costs - Potential fines for service disruptions or noncompliance For MCNC, these visible costs added up quickly. Before implementing KorTerra, the organization averaged **10–15 damages per year**, with each incident costing between **$30,000 and $75,000**. Those expenses directly impacted budgets, but they weren’t the only costs to consider.    #### **The Hidden Costs: Damages You Don’t Budget For** What makes network damage truly dangerous to a telecom’s bottom line are the expenses that aren’t always visible or immediately measurable.  **Downtime and Service Interruptions**  - Every damaged fiber means service downtime, and every minute offline can mean dissatisfied customers, SLA penalties, and reputational harm. In an industry where uptime is everything, the financial and relational impact can be far-reaching. **Lost Productivity**  - When teams are forced to divert resources to emergency repairs, proactive work gets delayed. Scheduling disruptions cascade, creating inefficiencies across departments; from field operations to customer service. **Liability and Risk Exposure**  - Unreliable locating practices can expose telecoms to safety incidents, liability claims, and regulatory investigations. Even one mistake can create months of administrative burden and legal costs. For MCNC, the turning point came when **third-party locating contractors failed to consistently protect their assets**. Missed deadlines, incomplete locates, and lack of accountability led not only to damages, but also to significant internal strain. These hidden costs made one thing clear: it was time to take control.    #### **The Turning Point: Regaining Control Through Proactive Prevention** To eliminate the financial and operational uncertainty of recurring damages, MCNC made the strategic decision to **bring their locating operations in-house** and adopt technology that could provide precision, visibility, and accountability.  They implemented **KorTerra’s Locate Management, Productivity Management, and Risk Management solutions**, giving their team the tools needed to streamline workflows and minimize human error.  - With **map-based routing**, tickets were automatically dispatched to locators based on geography, saving time and reducing manual coordination. - Through **facility mapping**, locators gained real-time visibility into underground infrastructure. - And **mobile functionality** allowed teams to manage tickets, capture photos, and attach documentation directly from the field. The result? A connected, transparent locating process that empowered MCNC to protect their fiber assets more efficiently and confidently than ever before.    #### **The Results: What Happens When You Prioritize Prevention** The impact of MCNC’s proactive approach was immediate and measurable.  **Within one year of implementing KorTerra, MCNC achieved:**  - **10–15 minutes saved per locate**, improving daily productivity. - **10X reduction in damages**, with only one at-fault damage reported in 2021. - **Over 75% of annual damage costs were eliminated.** - **A** **90% overall decrease in damage-related expenses.** By transforming their locating operations, MCNC cut costs and built a sustainable framework for continuous improvement and accountability.  *“Calling the help desk has been amazing. The team has a rapid turnaround time, and they have a willingness to figure things out that may not have come up in the past.”*  *— Brian Arrington, OSP Locate Supervisor, MCNC*    #### **The Bigger Picture: Why Telecoms Can’t Afford to Ignore Damage Prevention** As the telecom industry accelerates fiber expansion, 5G infrastructure, and broadband initiatives, risk exposure will only increase. Each project adds more underground assets to protect and more opportunities for costly damage.  Ignoring the hidden costs of network damage means more than financial loss—it means **operational vulnerability**. Prevention isn’t just about avoiding emergencies; it’s about empowering teams, protecting investments, and ensuring customers experience the seamless connectivity they expect.  MCNC’s success demonstrates what’s possible when telecom organizations invest in technology that unifies locate management, automates dispatching, and provides data transparency across every job.   #### **Conclusion: Protecting Networks Starts Below the Surface** The true cost of network damage is measured in downtime, lost productivity, and missed opportunities, not invoices. For telecom providers striving to deliver reliable service in a competitive market, **damage prevention is a critical investment in resilience.**  By adopting proactive, technology-driven solutions like KorTerra, organizations can move from reactive repair cycles to long-term prevention strategies that save time, money, and reputation.  MCNC’s journey proves that when telecoms take control of their locating operations, they protect their networks and their future.    --- ##### About KorTerra, Inc. KorTerra is the leading provider of damage prevention software, protecting billions of dollars in underground infrastructure. For over 30 years, the leading stakeholders in gas distribution, pipeline operation, telecommunications, electric distribution, contract locating, and city, county, and state governments have trusted KorTerra as their damage prevention solution. KorTerra helps mitigate risk and ensure the safety of field personnel by providing secure software platforms for processing 811 locate tickets, tracking and reporting asset damages, meeting regulatory compliance, and more. Explore additional solutions at [korterra.com](https://www.korterra.com/) and follow [KorTerra on LinkedIn.](https://www.linkedin.com/company/korterra-inc/) **Media Contact:** Paige Nygaard – KorTerra, Inc. 952.368.1911 [marketing@korterra.com](mailto:marketing@korterra.com) SHARE - - - [Previous Post](https://korterra.com/blog/stop-counting-811-tickets-start-measuring-scope) [Next Post](https://korterra.com/blog/damage-preventions-3-point-shot-how-dig-site-scope-transforms-the-way-locate-work-is-measured) [![Korterra](https://korterra.com/hs-fs/hubfs/Korterra_Jan2026/Images/korterra-footer-logo.png?width=217&height=48&name=korterra-footer-logo.png "Korterra")](https://korterra.com) | [952.368.1911](tel:9523681911) [Email](mailto:info@korterra.com) | | --- | | 1851 Lake Drive West Chanhassen, MN 55317 | Protecting communities and critical infrastructure with innovative solutions that ensure safe excavation and asset preservation. 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