Thursday, November 17, 2011
Emerging markets proving key to FTTH''s growth
Fiber to the home technology is rapidly emerging as a prominent networking tool to bring high-performance internet services to residential and business users. However, many developed economies are struggling to continue into another tier of FTTH deployments, and nations with emerging economies are fueling growth, according to Ozgur Aytar, research director and practice leader for broadband and media at Pyramid Research.
Aytar explained that many developed nations initially embraced FTTH deployment, but have slowed network rollouts in light of poor economic conditions from 2009 through 2011. Conversely, emerging economies, where investment in infrastructure has become a priority, are becoming key areas for optical network construction.
Currently, 11 percent of all broadband lines are based on FTTH, Aytar said. Pyramid Research anticipates the revenue-related value of FTTH deployments to nearly double by 2016. This rapid growth across the sector comes as a growing number of businesses embrace more robust and sophisticated technologies. Network operators are also expected to embrace FTTH as a way to generate new revenue streams.
Aytar said these revenue streams are proving to be a prime motivator for FTTH and fiber to the business networks.
"The drivers for FTTx network deployment vary from the creation of new revenue streams and regulatory incentives to further monetizing existing assets and opex efficiencies. By 2016, Pyramid Research expects FTTH broadband to generate nearly $116 billion in service revenue worldwide," said Aytar.
This growth can also be attributed to increased affordability in FTTH deployments. According to Aytar, a growing trend toward FTTB adoption is creating significant revenue for many operators. This makes it easier for them to deliver cost-effective optical networks that allow end users access to robust networking technologies. This has made FTTH more accessible in emerging markets, driving rapid adoption levels in these regions.
While emerging economies are fueling FTTH adoption, the trend has not died in developed nations. For example, a growing number of rural regions in the United States are seeing FTTH installations. According to a recent Iowa Independent report, 28 telecom and utilities organizations are working to deploy FTTH networks in rural parts of Iowa and more than 17 other states because of federal stimulus funds. U.S. agriculture secretary Tom Vilsack told the news source the increased FTTH deployments should help improve education and healthcare in rural parts of the country.
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