Thursday, December 01, 2011
Rising popularity of FTTH is leading to diverse industry options
Fiber to the home and fiber to the business technologies are becoming so popular around the world that they are expanding how organizations use the internet. This is especially the case with governments, which are increasingly pushing for widespread fiber-optic network deployment, according to a recent Pyramid Research study.
Ozgur Aytar, practice leader for Broadband and Media and consultant for Pyramid Research, explained that FTTH services will likely create approximately $116 billion in global service revenue by 2016. This comes as more service providers work to deploy FTTH and FTTB network infrastructure in a diverse range of settings to create new revenue streams, improve operating efficiency, ease regulatory compliance processes and improve assets that are already in existence.
Within this trend toward more widespread FTTH and FTTB deployment, many sectors are expected to adjust to the new service opportunities. Aytar explained this trend is prevalent among government organizations, who are increasingly getting behind optical network deployment and then using that support to enhance public services through the improved infrastructure. Much of this is made possible because optical network setups are poised to expand rapidly around the world.
"FTTH lines are expected to almost triple between 2011 and 2016, driven by uptake in China, Russia, the U.S. and the deployments from Western European incumbent operators. Thanks to the involvement of authorities, the introduction of FTTH-enabled social services are spreading, extending the proposition of fiber beyond traditional telecom services," said Aytar.
As more service providers get behind the trend toward optical network deployment, investments in the equipment necessary to implement this infrastructure are on the rise. A recent Technavio study found the global FTTH equipment sector is poised to rise quickly moving forward on the tide of increased FTTH investments around the world. To a great extent, this movement is motivated by rapidly expanding bandwidth requirements by end users and service providers, making the need for optical cabling essential in many areas.
According to the study, the Asia-Pacific region is currently dominating FTTH deployment and has emerged as one of the fastest growing areas for port shipments. South Korea and Japan have been leading this charge, but China is rapidly emerging as a key player in the market as well, creating ample opportunities for expansion in the sector.
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