Technology | Media | Telecommunications

Thursday, August 26, 2010

Video Use Prompts Telcos to Deploy more FTTH

Infonetics Research released excerpts from two new market studies of broadband access services. Most FTTH equipment vendors may be surprised to learn that many operators are already evaluating next generation technologies to solve their current and future bandwidth requirements.

In most cases, the accelerated adoption of online video entertainment services has been a primary driver of new broadband infrastructure investment planning.

When Infonetics recently surveyed global service providers about their Fiber-to-the-Home (FTTH) deployment strategies, almost half said they are evaluating 10G GPON, and a small but significant number are already evaluating WDM PON, asymmetric 10G EPON, and symmetric 10G EPON.

With this in mind, "FTTH equipment vendors need to step up efforts to educate their customers about the advantages of next gen technologies," notes Jeff Heynen, directing analyst for broadband and video at Infonetics Research.

In aggregate, the service providers surveyed represent 28 percent of worldwide public service provider capital expenditures (capex), and 19 percent of revenue, and include some of the world's largest fixed-line providers.

Infonetics market study highlights include:

- Service providers are interested in how they can employ next generation FTTH technologies to provide premium fixed broadband services to subscribers.

- The top 2 drivers named by service providers for deploying next generation FTTH technologies are the delivery of over-the-top video; and increasing bandwidth to each subscriber to enable multiple concurrent VoD streams in the home.

- When asked which FTTH optical network termination (ONT) features and capabilities they require, 73 percent of service providers surveyed said VoIP.

- Broadband access is the true growth engine for residential services, with annual revenue for North American service providers expected to grow at a 13 percent CAGR from 2009 to 2014, driven by both fixed and mobile broadband solutions.