Tuesday, November 01, 2011
FTTH expanding at rapid pace
More independent telecommunications companies are investing in fiber to the home networks, as optical network technologies becomes more popular around the world.
A recent Broadband Communities study found 585 telecoms have developed some form of fiber to the premises service, Broadband and Properties magazine reported. This is 12-times the number of companies deploying optical networks as of 2005. However, the report noted that the rate of growth in telecoms deploying FTTH is slowing.
This trend may not be a sign that FTTH deployments are dwindling, the report said. The slowing number of independent telecoms deploying FTTH could instead be created by the environment around federal stimulus funding. Typically, Broadband Communities working on FTTH when the project has actually been put into action. Stimulus money changed this, with many telecoms announcing new optical installations long before construction actually began. The news source said this led to rapid acceleration in the number of telecoms included in its list, even though many of these projects may not start for another couple of years.
According to the report, the number of telecoms entering the FTTH market may be dwindling, but this is not a sign that optical network deployments are dwindling. Instead, the news source said more telecom providers are working to expand the FTTH networks they already have in place. As a result, the FTTH sector is still growing quickly even if it is not seeing a major influx of new entrants into the industry.
Supply chain issues may have also played a role in slowing new telecom entries into the FTTH market. According to the news source, the earthquake and tsunami in Japan earlier this year led to significant disruptions to the optical cabling supply line, making it more difficult for telecoms to invest in new wires to support optical network deployment.
FTTH is quickly becoming more popular in many parts of the world, with Canada among the countries where many consumers and businesses are demanding optical networks. According to a recent Globe and Mail report, the number of Canadians prioritizing their network services and seeking high bandwidth options is rising, creating significant demand for FTTH infrastructure. Much of this demand stems from copper cabling's inability to handle the data throughput requirements of video streaming and other advanced services.
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