Wednesday, December 26, 2012
FTTH establishes foundation for economic growth
The debate surrounding fiber to the home's impact on economic conditions is heated. While many experts agree that FTTH serves as a key economic enabler, there are plenty of people who think FTTH projects are too expensive to be worth the gains. This argument is often heard at its loudest when governments put significant funding into FTTH projects.
While this debate is still going on, the argument for FTTH deployment for economic gains is clear in many markets. At a recent FTTH Council Middle East and North Africa conference, a number of experts explained that FTTH deployment can pay major dividends for economic development in the Middle East and North Africa (MENA) region, AMEInfo.com reported.
Importance of FTTH for economic growth
Speaking at the conference, Faris Awartani, Chairman of FTTH Council Middle East & North Africa, told audiences that the MENA region is particularly in need of FTTH innovation, the news source explained.
"Fiber to the Home is key to a sustainable future, ensuring a healthy environment for socioeconomic development," said Awartani, according to the report. "We believe that FTTH is leading the new generation and the way to innovation and technology. Our region is in great need for a future-proof infrastructure in order to answer the requirements of the new emerging perspectives."
Using FTTH for economic sustainability
The big problem with FTTH, from an economic perspective, is that its ability to actually generate revenue for telecoms can be limited. This creates an environment in which many internet service providers are reticent to build out large FTTH networks, because they do not necessarily have the opportunity to use the technology to improve profits. Because of this, many telecoms will not deploy FTTH without government funding to support the project.
Within this broad economic climate, the government plays an integral role in supporting revenue creation for private companies. This can create political tension, especially as LTE networks are emerging as a primary option for many consumers. As a result, FTTH deployments have to be specifically targeted to the right markets to foster growth. In particular, fiber to the premises deployments that serve business users can take the groundwork laid by FTTH and use it in commercial districts to give main street businesses unique opportunities for growth moving forward.
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