January 2016 Vol. 71 No. 1
Features
Fiber Optic Networks Experience Huge Growth
The number of homes in the United States directly connected to fiber optic networks continues to grow – 13 percent in 2015, reports the Fiber to the Home Council (FTTH) survey released in November.
More than 12.3 million homes in the U.S. are connected to fiber, said Michael Render, president of RVA, LLC, the research firm conducting the survey which is based on information provided by North American broadband service providers.
“It is the second biggest year for fiber expansion since fiber technology became available,” Render continued. “In 2015 nearly 3 million new homes were passed (homes in locations where they can be connected to fiber), and currently 26 million homes are passed and fiber connectivity is being marketed to them.”
The study found that almost 20 percent of all true fiber connections are in the U.S. Further, the study reports there is almost a 50 percent “take” rate of homes passed – that is households accepting the opportunity to be fiber connected.
“That is a very high take rate by world standards,” said Render. “The industry is poised for substantial growth over the next five years.”
With faster speeds and better reliability, fiber sells itself,” said Heather Burnett Gold, FTTH Council president.
“Happy consumers,” said the survey report, “mean more growth. Most of the FTTH growth is driven by consumer experience and word of mouth. FTTH consumers report higher than 50 percent satisfaction with fiber than with DSL or cable. Faster speeds and reliability of service drive consumer satisfaction.”
Broad growth
On a broader scope, the survey cites nearly 34 million homes in the U.S., Canada, Mexico and the Caribbean are passed and being marketed for fiber to the home. Canada’s growth is accelerating with 2.4 million homes marketed.
Looking ahead, the reports says providers of fiber broadband have their sights set on symmetrical and gigabit service in the U.S. and
Canada. “More than half of the 1,000-plus service providers in North America expect to offer gigabit within five years,” the survey found.
Of major carriers, Verizon was the first to bring fiber to the home on a large scale with AT&T moving at a slower pace. Google’s entry into the fiber market with promises of 1 gigabit speeds, appears to be a factor encouraging other carriers to roll out gigabit fiber. Also, some
carriers are already talking of 2-gigabit speeds.
FTTH isn’t limited to urban areas as a surprising number of small rural communities are boasting fiber networks superior to big-city dwellers. These “private” networks serve areas where the big carriers don’t go and include fiber to businesses which allows the cities to compete with metropolitan areas for new business.
The FTTH survey does not include business connections, but the FTTX (fiber to anywhere) is another huge growth area as both large and small businesses find high-speed fiber is necessary to compete in today’s markets.
FOR MORE INFORMATION:
FTTH Council
(503) 635-3114, www.ftthcouncil.org
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