Wednesday, April 11, 2012
Fiber-optic cable boom storming through United States
At the turn of the last century, the telecommunications industry was amid a major upswing in fiber-optic cable installation. The sector was working to build for the future and existing economic conditions and market demand were contributing to the need for new cabling installations. Then the telecoms got a little ahead of themselves. In many cases, organizations built just a bit too much fiber. At the same time, the recession hit. This led to mile after mile of dark fiber sitting underground and in utility poles and plenty of wasted money across the sector. However, the economy is changing and the optical network market is booming again, the Wall Street Journal reported.
According to the news source, the current demand for fiber-optic cable installation is significant, though some experts warn that telecoms should not get too far ahead of themselves are risk building too much. However, the core problem is not capacity, it is location. Citing Telegeography, the report said there is enough fiber in the United States to support existing needs. However, there are so many regions that are unable to connect to that infrastructure that new projects are becoming necessary.
This trend is combining with the rise of video streaming systems to bring significant demand for fiber-optic cable networks, the Wall Street Journal explained. Netflix, Amazon and other consumer streaming services are bringing data rich solutions to the home in greater volume than ever before. As a result, more consumers require high-performance connections. At the same time, mobile networks are also expanding at an unsustainable pace, making backhaul investments key. These factors are combining to create a second boom in the fiber-optic cabling industry.
The current demand for fiber-optic cable infrastructure is so high that the CRU Group estimates approximately 19 million miles of optical cabling were installed in the United States in the past year. This is the most since 2000, the center of the initial optical networking boom. At the same time, some cabling suppliers are warning customers they may not meet orders and some companies making specialist cabling construction tools are facing their busiest period in a decade, the report said.
The rise of optical cabling installation is hitting every sector. Businesses are embracing the technology to support cloud computing, virtualization and other advanced processes, consumers are demanding the solution to get better connections and telecoms are being pushed to deploy fiber to support video streaming services and provide better mobile backhaul capabilities.
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