The next boom: Next Generation Telecoms and FttH
The global telecommunications market is rapidly transforming. Telecom networks are undergoing extraordinary changes with investments in All-IP Next Generation Networks and fibre networks increasing in order to meet burgeoning consumer demand for high-bandwidth applications. The ‘business case’ for Fibre-to-the-Home networks is no longer based solely on the commercial returns from Internet access and other communication services. Important services that depend on high quality broadband infrastructure include telehealth, tele-education, e-business, digital media, e-government, smart utility meter reading, etc. These are all key reasons why developed nations need Next Generation Networks. In the developing markets, next generation telecoms will take the form of wireless NGNs (ie, LTE/WiMAX).
IP is at the core of NGNs as it facilitates affordable triple play business models and seamlessly integrates voice, data and video. The telecommunications network is dramatically changing to an IP driven environment and in 2008 the majority of corporate and government telecoms users have upgraded to All-IP networks. The next stage is to now upgrade the public networks.
While most people within the telecoms industry agree that FttH is the future, it is the countries with effective and strong regulatory policies that are forging ahead with a lively fibre footprint. Once regulators get the issue between their teeth and act, the fibre sector moves ahead because operators are no longer put off by regulatory uncertainty. By promoting effective fibre regimes, regulators are in turn supported by governments’ conscious of the socio-economic benefits of fast broadband networks, and the consideration that such networks are vital to national infrastructure.
There are currently over 40 million FTTx subscribers worldwide. While DSL still retains the largest market share of broadband subscribers globally, there is some evidence that FttH uptake is growing at a faster rate. However it is important to note that mass deployment of FttH is in most countries still 5-10 years away. This is due partly to the developments in DSL (speed and reach), which are allowing the telcos to extend the life of their copper-based networks and also due to the costs involved in FttH deployment.
Asia continues to reign as the leading region, accounting for around 80% of all FTTx subscribers. Japan has the highest number of FTTx subscribers worldwide; however the USA, South Korea and parts of Europe are also rapidly rolling out. The uptake of GPON technology is expected to grow quickly in 2008 due to Verizon’s roll-out, resulting in reductions in both GEPON and BPON market share.
The 2008 Global – Next Generation Telecoms and FttH report provides an insight and analyses into the trends and developments taking place in Next Generation Telecoms with a focus on FttH. FttH is discussed in terms of its importance for the digital economy. The issues surrounding the regulating of fibre access are also explored, along with a case study on this topic for Europe. The report also provides a statistical overview of the worldwide broadband market and additional statistics on FttH. Information on All-IP networks is incorporated, along with relevant technical information on both fibre and IP techniques. Developments and statistics at a regional level are provided for North America, Latin America, Europe, Middle East, Africa and Asia Pacific. Please note: Next Generation Mobile Networks are covered in a separate annual publication.
Key highlights:
- In the developed world the plan for a national network must be based on the ultimate network architecture of FttH in metro areas, plus a combination of technologies elsewhere – with end-to-end facilities for organisations such as healthcare, education, utilities, media companies and so on.
- In 2008 Asia continues to dominate the rest of the world in terms of FttH market penetration.
- Worldwide FttH port shipments are expected to increase by over 80% in 2008.
- FttH and FttB were the most expensive broadband access technologies in the OECD.
- In Australia, the government is looking at using next-generation telecoms infrastructure to promote the digital economy. This includes applications such as tele-health, tele-education, smart grids, media, etc. BuddeComm has taken an industry leadership role to assist the government in this process.
- With the number of US homes passed by fibre growing at over 200%, the US is the fastest growing FttH market in the world.
- FttH and FttB are growing in popularity across Eastern Europe as incumbent and alternative operators alike deploy networks. Deployment costs and availability of existing copper last mile infrastructure in established suburbs has restricted most FttH/FttB deployments to greenfield sites or densely populated suburbs.
Broadband – Infrastructure blueprint
|
Area |
Radius |
Technologies |
Population penetration |
|
Metro |
|
FttH |
75-80% |
|
Regional |
30-50km |
Mixture |
15-25% |
|
Remote |
50km+ |
Satellite |
1-2% |
(Source: BuddeComm, 2008)
For more info see : 2008 Global – Next Generation Telecoms and FttH









August 6th, 2008 at 2:58 pm
Dear Paul,
I agree that the FttH is a key to all IP network and it could promote telehealth, tele-education, e-business, digital media, e-government, smart utility meter reading, etc..
But based on the fact that Austrlia has a large area and sparse population, is it too expensive for the industry to implement a FttH or any fibre infrastructure? When do you think we will have the financial ability to vastly deploy FttH especially for the remote areas? And is the Satellite still dominant now in the market?
Thanks a lot.
August 8th, 2008 at 4:33 pm
Benny asks: “But based on the fact that Austrlia has a large area and sparse population, is it too expensive for the industry to implement a FttH or any fibre infrastructure?”
I have a few comments / questions on that. Yes, Australia has a relatively distributed population – but how much of that population lives in truly rural situations, as opposed to dense townships? If we find that 95% of the population live in communities that are relatively dense, then surely a FttH solution wouldn’t be so expensive for that 95%? A significant cost of such a network would be, of course, the backhaul between towns/cities, and area which I believe has already been identified as suffering badly from lack of competition. Backhaul aside, why should FttH cost any more to roll out in Birdsville than suburban Sydney? After all, Birdsville is only about a kilometre from side to side…
That should, I presume, be one of the questions the current NBN bidders are asking themselves: “How much of Australia’s population is within economical FttH reach of an existing exchange?”