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2007 Global FttH - Fibre Networks Becoming a Reality

This annual report offers a wealth of information on the worldwide development of Fibre-to-the-Home. Information on a regional level is also provided for the Americas, Europe, Middle East and Asia Pacific. The report includes analyses, statistics, forecasts and trends. It provides a comprehensive insight into the progress of FttH and examines some the drivers for implementation and issues impacting upon deployment. In addition the report provides detailed technical information on FttH technology.

Subjects covered include:

  • FttH trends and developments;
  • FttH deployment;
  • FttH statistics and forecasts;
  • Regional overview;
  • Technical information.


Fibre-To-The-Home (FttH) is making great progress and finally becoming commercially viable. Advances in digital technology driven through fibre optic telecommunications promises great change - the new explosion of bandwidth will enable interactive multimedia and video information to come into households, schools, businesses etc in a variety of ways. There are various drivers behind the push for FttH, and it varies from country to country. Broadly speaking they can be categorised as economic, social, entertainment and business drivers. For more information, see chapter 1.2, page 7.

The other positive development is that the new FttH networks seem so much simpler than the original Phase 1 VDSL/fibre deployments. FttH should simplify the deployment process significantly and make the networks easier and cheaper to maintain. In addition, once all the initial work has been done, IT programming costs will also be greatly reduced.

Asia is the one region of the world where FttH has started to emerge as a serious broadband platform. Not unexpectedly, the movement towards fibre has occurred in Asia’s more developed markets, where positive government intervention plays an important role. For more information, see chapter 1.1, page 1.

Japan and South Korea were the first leaders in terms of deployments, due to strong government visions regarding national infrastructure development. It was seen as beneficial for these countries generally; especially in terms of developing new products and services that could be exported to global markets.

Today the progress of FttH around the world can not only be attributed to Japan and South Korea, but also to the large-scale deployments taking place in the USA and some parts of Europe. In 2007 more than 200 significant deployments of fibre cabling are occurring in Europe. In mid-2007 Sweden had more than 7% of households connected to fibre, Denmark and Norway 3% and The Netherlands about 2%. Fibre penetration is set to grow quickly in the next few years as the FttH and hybrid FttN/xDSL networks from incumbents and alternative operators come online. For more information, see chapter 2, page 20.

This report provides an insight and analysis into the trends and developments taking place in the FttH sector. A global overview of the progress of FttH is provided, as well as information at a regional level incorporating North America, Latin America, Europe, Middle East and Asia Pacific. The report includes statistics and forecasts and also provides detailed technical information on FttH technology. Please see chapter 3, page 50.

Key Highlights:

  • FttH deployment will be much faster in areas where there are clear business models for it (such as metro areas).
  • Incumbents need to upgrade their access and core networks in order to increase and improve upon speed, network capacity, resilience/redundancy and network cost reduction.
  • Education is just one of the important social aspects of fibring up countries - access to the Internet is already seen as a vital element in school education. Interactive video is going to add that special element to education which will make fibre optic networks even more important for community social structures.
  • Asia leads the world in terms of FttH household penetration, with Hong Kong, South Korea and Japan the leaders in that region. For more information, see chapter 2.5, page 29.
  • FttH subscribers, penetration and growth - Japan, USA, Europe - mid 2007
Country FttH subscribers
(millions) FttH penetration 2007
(%) FttH growth
(%)
Japan 8.1+ 16.3 60
USA 1.3+ 1.2 99
Europe 1.2+ 1.8 13


(Source: BuddeComm based on FttH Councils and various industry sources, 2007) In the USA, after years of delayed projects, the telcos are finally deploying FttH networks. By early 2007 fibre penetration had reached more than 1,000 US communities and was growing at almost 100% per annum, largely due to the extensive deployment being undertaken by Verizon. AT&T’s deployment continues to be plagued by delays but is expected to pick up pace in late 2007. For more information, see chapter 2.1.1, page 20.

While fibre services to businesses in metro areas have been a standard service offered by many telecom companies and ISPs in Canada, deployment of FttH is still in its very early stages, with only a limited number of residential communities being connected to fibre networks. For more information, see chapter 2.1.2, page 20.

Most FTTx deployments in Mexico and Brazil have involved affluent housing developments and tourist resorts. For more information, see chapter 2.2, page 21. The first fibre rings have been laid in some of Africa’s largest cities and the first office premises have been connected to them directly, but it will be a while before the first residential homes in Africa will be connected by fibre. In Europe, Scandinavian countries have the highest fibre household penetration in the world after Hong Kong, Japan and South Korea. For more information, see chapter 2.3.1, page 22. Data in this report is the latest available at the time of preparation and may not be for the current year.

1. THE FTTX MARKET IN 2007
1.1 FTTx overview and statistics
1.1.1 Introduction: optical communications
1.1.2 Global overview
1.1.3 FTTx market statistics
1.1.4 FTTx equipment statistics
1.1.5 FTTx installation costs
1.1.6 Regulating fibre: a global issue
1.2 FTTx market analysis
1.2.1 ‘Build and they will come’ - back in favour
1.2.2 FttH becoming a reality
1.2.3 FttH drivers
1.2.4 Future infrastructure - strategic analysis
1.2.5 Fibre-based access
1.2.6 The nationwide road to FttH will take 10-15 years
1.2.7 Fibre-to-the-Node (FttN)
1.2.8 FttH versus FttN
1.2.9 Blown Fibre
1.2.10 FttH business models
1.2.11 Fibre to the farm
2. REGIONAL OVERVIEWS
2.1 North America
2.1.1 USA
2.1.2 Canada
2.2 Latin America
2.2.1 Overview
2.2.2 Mexico
2.2.3 Brazil
2.2.4 Venezuela
2.3 Europe
2.3.1 Western Europe
2.3.2 Eastern Europe
2.4 Africa / Middle East
2.4.1 Africa
2.4.2 Middle East
2.5 Asia
2.5.1 Overview
2.5.2 Japan
2.5.3 South Korea
2.5.4 China
2.5.5 Other Asian markets
2.6 Pacific Region
2.6.1 Australia
2.6.2 New Zealand
3. TECHNOLOGY
3.1 Last Mile - Fibre
3.1.1 Introduction
3.1.2 Customer needs
3.1.3 Needs of telecommunications carriers
3.1.4 Standards organisations and industry bodies
3.1.5 Architectural considerations
4. GLOSSARY OF ABBREVIATIONS


List of Exhibits


Exhibit 1 - Access network technologies
Exhibit 2 - Residential Broadband (BB) - growth predictions - next ten years
Exhibit 3 - Current broadband services
Exhibit 4 - Residential Broadband (BB) - growth predictions - next ten years
Exhibit 5 - Broadband - Infrastructure blueprint
Exhibit 6 - Regional town of Bronckhorst - Netherlands
Exhibit 7 - Agriculture business broadband applications
Exhibit 8 - Facts and figures of the Telstra’s FttN roll-out
Exhibit 9 - Fibre-to-the-Node (FttN)
Exhibit 10 - FttN Group of competitive carriers
Exhibit 11 - Cooperation scenarios
Exhibit 12 - Cooperation access pricing scenarios
Exhibit 13 - Alcatel’s BPON platform
Exhibit 14 - Fibre network overview by provider


List of Tables


Table 1 - FttH subscribers, penetration and growth - Japan, USA, Europe - mid 2007
Table 2 - FttH market penetration - top 6 countries - mid 2007
Table 3 - Worldwide FTTx share of broadband market - 2004; 2006
Table 4 - Worldwide broadband subscribers and market share by access technology - 2006
Table 5 - Worldwide spending on fibre-optic cables - 2006; 2010
Table 6 - Cost of installation - FttH and VDSL - 2005; 2008
Table 7 - Estimated bandwidth requirements per application - 2007
Table 8 - BT lines by capacity - 2007
Table 9 - Broadband household penetration in Arabian Gulf countries - 2006
Table 10 - FttH broadband subscribers in Japan - 2002 - 2007
Table 11 - Japan’s FttH operators - subscribers and market share - 2006
Table 12 - South Korea’s Broadband subscribers by access type - March 2007
Table 13 - South Korea’s FttH subscribers by service provider - March 2007
Table 14 - Taiwan’s Broadband subscribers and annual change by access - 2006

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