Wednesday, January 12, 2011
Report: Fiber optic cabling set to rebound
The economic recession of 2008, 2009 and parts of 2010 had a marked impact on fiber optic cable installations throughout the world. What was a bursting industry that was reaching homes, businesses and public buildings to bring blazing fast broadband internet to a variety of audiences turned into a luxury technology that few could afford, extending the life of copper cable for a few more years.
According to a recent report Global Industry Analysts, the recession's impact on fiber optic cabling has come to an end, and 2011 will be marked by increased fiber optic network expansion and more demand for fiber-related tools, such as a fiber media converter and other related products. Overall, the report anticipates significant growth in the industry progressing through the next few years as more fiber optic cable networks are installed and businesses, consumers and telecom providers invest in advanced tools to facilitate the new networks.
The recession had a somewhat unique impact on fiber optic cabling, the report said, because it negatively affected almost every metric that fiber optic works within. Since businesses were shrinking their budgets, new enterprise installations slowed, real estate woes led to fewer investments on the home front and decreased demand forced telecoms to reduce costs and offer budget friendly services. As a result, the report said, fiber has spent the past two years in stagnation.
However, new advances in internet speed standards are coupling with increased economic optimism to create a growth climate for fiber optic cable, the report said. As a result, the chances of any prolonged stagnation in the industry are minimal. Furthermore, many projects that were begun prior to the recession, but halted when the economy faltered are likely to be resumed once more as network operators and telecoms begin to expand their services in light of new economic potential.
The United States, Europe and Asia-Pacific region are currently dominating the fiber optic climate, the report said, but developing nations, such as Brazil, are increasingly demanding new fiber optic networks and Asia-Pacific fiber optic growth is expected to outpace fiber optic expansion in western Europe and the United States.
In order to take advantage of new demand for fiber optic networks, the city of Lincoln, Nebraska, has announced plans to sponsor the installation of a dark fiber network, the Lincoln Journal Star reports. Dark fiber describes unused fiber optic cable, which can be tapped into by telecoms who purchase rights to transmit through the cable.