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Think about more than speed when implementing FTTH

By Max Burkhalter
June 4, 2013

Fiber-to-the-home networks offer performance punch that can be tough to match with traditional telecommunications technologies. However, performance does not always equate to revenue. As a result, telecoms have to seriously consider ways to use the network to improve profit potential. Furthermore, service providers may want to evaluate the potential gains offered by media converters and similar technologies that ease deployment and allow FTTH projects to progress in the most cost-efficient manner possible.

According to a recent report, the problem with telecoms chasing after high speeds is clear in Japan.

Looking at Japan's FTTH speed race from a global perspective
A few telecoms in Japan are currently amid an arms race of sorts fighting to be the fastest on the market. A couple of telecoms are offering 1 Gbps speeds in the FTTH system for a reasonable, consumer-friendly price. However, another telecom recently deployed a 2 Gbps FTTH network that is priced at either the same point, or only slightly above, the 1 Gbps competition. The news source explained that this represents an issue that many telecoms around the world may soon be facing - they can use high-performance capabilities to get the attention of data-hungry consumers, but the revenue gains are only short lived.

The report said that while racing to be the fastest telecom in any given market can provide an initial revenue boost, the industry is not one that embraces speed as the most important consideration. Time has taught telecoms the lesson that while performance may provide a nice revenue boost, it is not a sustainable path to profits. Instead, most consumers will only pay for better performance when the price comes down to the vicinity of what they are already spending. As a result, making major performance upgrades is not always the best way to sustain revenues from FTTH investments.

Alternative revenue strategies
While striving for the best performance may be a good staring strategy, telecoms looking for long-term FTTH profits have to look beyond performance and consider advanced features and services they can offer through the technology. Developing efficient FTTH installation processes can also provide a solid path to financial sustainability. Installing FTTH infrastructure represents a major roadblock to innovation in the sector. Using fiber to Ethernet media converters and similar solutions to control costs and ease interoperability during network installation can play a vital role in positioning telecoms for long-term revenue success by minimizing initial costs.

Perle has an extensive range of Managed and Unmanaged Fiber Media Converters to extended copper-based Ethernet equipment over a fiber optic link, multimode to multimode and multimode to single mode fiber up to 160km.


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