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Optical connections set to rise in Israel

By Donna Donnowitz
July 25, 2011
Israel is a prime location for fiber to the x (FTTx) expansion, as the nation is positioned well for exponential growth in fiber optic deployment to both homes and businesses.

According to a recent Ovum report, Israel hosts a number of the world's most prolific telecoms in terms of deploying fiber optic networks around the word. However, the country boasts just one percent penetration domestically. This opportunity combines with government initiatives to improve communications infrastructure and put the nation in an excellent position to expand its optical infrastructure through FTTx deployments.

Israel's population distribution also contributes to its potential as a destination for large-scale FTTx growth. The report explained approximately 90 percent of the nation's population currently resides in urban regions. This means it will be easier to reach a large percentage of the population with optical technology than it would be if the population was spread out over vast tracts of rural land.

Beyond population, the report points to Israel's healthy gross domestic product per capita and widespread access to DSL and cable internet as signs that the country may be ready for optical networks. GDP indicates a stable economy with enough household income to support FTTH, while success with DSL and cable internet means the population is familiar with fixed broadband and may be amenable to an upgrade, according to the report.

In some cases, these advantages may not benefit a country because optical networks can be too expensive to build. The report said Israel may be able to overcome that concern.

"Even with these positives, FTTx networks are expensive to build. But Israel has an advantage here too: the majority of existing electricity and communications cabling infrastructure in the country is aerial, so there is no need for costly and disruptive trenching," according to the Ovum report.

When looking at the potential for FTTx adoption over larger regions than individual nations, another Ovum study identified the Asia and Pacific region as the leading area for FTTx expansion. The study found the region is being led by China into a role as one of the leading FTTx centers of the world. While China's current deployment level for optical networks represents a low percentage of the population, Ovum found the actual number of subscribers is still quite large. Overall, China's substantial population and economic growth throughout the Asia and Pacific sector should fuel rapid FTTx deployment.


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