FTTP/ FTTH emerges as the winner for Delivery of Triple Play service bundles to the home- GPON gains market traction!

Background

The United States is third among the world’s economies in the total number of FTTH households at 3.3 million, and is in 10th position in the global ranking with 2.9 percent market penetration. What’s most encouraging is that the US continues to experience the highest rate of growth of any economy in terms of FTTH subscribers – doubling the number of connections year over year.

This is due largely to FiOS deployments by market leader Verizon (VZ) and to ongoing buildouts by more than 600 smaller independent network providers across the country. "Aggressive FTTH deployment in the US has created a lot of buzz about this exciting technology, and the word of mouth from early FTTH subscribers is driving growth and fueling further deployments."  For more information, please see:

www.ftthcouncil.org

As we predicted several years ago, GPON has become the preferred last mile delivery technology for FTTP, with BPON, EPON and point to point optical Ethernet losing market share with declining sales. The nascent GPON market posted healthy growth worldwide in 1Q08, driven by service provider investments in broadband access networks, according to market research firm Infonetics Research (www.infonetics.com).  Even VZ is moving FiOS new installs to GPON with trials offering 100M bits/sec downstream. (see Ken Pyle’s comment below).

During the same period, BPON equipment sales declined significantly and EPON sales dipped, together bringing the overall PON market down three percent to $417 million worldwide in 1Q08. "Service providers increasingly turn to PON as the next generation of residential broadband access, primarily in areas where DSL service penetration has reached maturity and operators are looking to increase average revenue per user (ARPU)," says Mark Showalter, directing analyst for broadband networks at Infonetics Research.

FTTN vs FTTP: Which is the right last mile topology?

While AT&T ( U-Verse) has gone with fiber to the node (FTTN) and VDSL to the premises, Verizon has been very aggressive in its FTTH/ FTTP (FiOS) deployment. Many independent telcos have also rolled out FTTP, as per the announcements noted in this article.   Despite the higher build out costs and potential regulatory obstacles, we think FTTP will be the clear winner over FTTN.

Our opinion is that new video services, like multiscreen IPTV with simultaneous recording, will cause a "bandwidth explosion." Despite regulatory obstacles, we think that network operators will be forced to deploy fiber as close to the home as possible to provide the necessary increased bandwidth needed for new services. It looks like its starting to happen now with several independent telcos announcing their FTTP roll outs. For additional information, please see:

http://www.bbpmag.com/2008issues/aug08/AugSep08_FirstMile.pdf

http://www.bbpmag.com/2008issues/aug08/AugSep08_WhyFiber.pdf 

FTTH growth stays on track as connections rise to 3.76 million North American households

The upgrading of North America’s last mile networks with end-to-end fiber is continuing at a robust pace, with fiber to the home (FTTH) arriving at more than 1.6 million households over the past year, bringing the total number of FTTH subscribers to 3.76 million, according to a study released today by the Fiber-to-the-Home Council.

The study, by RVA Market Research (www.rvallc.com), pegged the annual growth rate for fiber to the home in North America at 76 percent, the highest of any country or region in the world.

http://fibresystems.org/cws/article/yournews/35944

Here’s a snapshot of recent FTTP/FTTH activity from independent telcos in the U.S.:

Dumont Telephone is rolling out fiber to the premises (FTTP) in Dumont Iowa (pop. 676), replacing the aging copper in its network. As a result, its maintenance costs are going down, and trouble tickets have dropped dramatically. One of the company’s four technicians is planning to retire some time in the next five years, said Roger Kregel, Dumont’s general manager, and Kregel may not replace him. "On a four-person team, that’s quite a bit," he said.  

To read the rest of the article, click here.

Embarq looks to make FTTP a bigger part of its future

A top executive with Embarq says the company cut the cost of fiber-to-the-premises deployment 19% per home this year and can shave an additional 5% next year, bringing the cost of FTTP in line with copper-wiring solutions. James Hansen, senior vice president of network services for the company, which currently deploys FTTP in greenfields, says he now sees a day when Embarq will "do a video play on network-based facilities."

http://telephonyonline.com/fttp/news/embarq-cut-fttp-deployment-costs-0923/

Comporium Communications Surpasses 6,300 Subscribers with FTTP gear from Enablence

Comporium Communications, has now connected more than 6,300 residential and business customers with Enablence’s FTTP equipment, and will now begin to deploy the TRIDENT7(TM) Universal Access Platform GPON solution. Comporium, based in Rock Hill, South Carolina, is one of the largest American ILECs (Independent Local Exchange Carriers) and cable television operators with almost 100,000 customers throughout its service area.

http://www.marketwatch.com/news/story/comporium-communications-surpasses-6300-subscribers/story.aspx?guid=%7BD245EE44-2492-480D-91D3-C8F91B426012%7D&dist=hppr

Wave7 Network Architect says DOCSIS 3.0 Not a Competitive Threat to FTTP

FTTP providers need not fear DOCSIS 3.0, says according to Jim Farmer, chief network architect for Enablence’s Wave7 FTTx networks division.Fiber-to-the-premises providers don’t have much to fear from DOCSIS 3.0 technology, which boosts the bandwidth of cable broadband networks, according to Jim Farmer, chief network architect for Enablence’s Wave7 FTTx networks division.  Click here to read the rest of the article.

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Please contact the author (alan@viodi.com) if you’re interested in FTTP/FTTH consulting or other research projects.

0 thoughts on “FTTP/ FTTH emerges as the winner for Delivery of Triple Play service bundles to the home- GPON gains market traction!

  1. This article does a good job of showing the progress of independent telcos in deploying FTTP. Of course, Verizon’s commitment to the market is driving the large volume.

    As they transitioned from BPON to GPON, they continued their RF overlay approach for linear video delivery. Interestingly, the GPON standard does not appear to specify wavelengths for RF video.

    As they roll the product to high rises in New York and other urban locations, it will be imperative to find ways to send video over twised pairs. It will simply be too expensive to rewire buildings for either fiber or coax.

    This is consistent with earlier comments made by Verizon and, perhaps, 2009 will be the year of some form of IPTV in the Verizon network.

    http://www.viodi.com/newsletter/070200/index.htm#natpe

  2. At the US Telecom Executive Business Forum (October 2nd in San Jose, CA) session on Non-US IPTV Deployments, panelists commented that most of the FTTP build-outs in Europe were in Scandinavia and focused on MDUs. The few depoyments to individual homes were said to be telco “Fiber to the Street,” where homeowners would have a block party where they would together install fiber from the street to their individual homes. Presumably, they would then call the telco to complete the installation within the home. Don’t think that business model would play well in the U.S. with independent telcos? What do you think?

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