Broad Base of Telecommunications Providers
Fuels Continued Expansion of North American
Fiber to the Home
Nearly 60 percent of FTTH operators report related economic growth in their communities
WASHINGTON, DC – The number of North American households connected directly into optical fiber networks grew by 13 percent over the past year, indicating that telecommunications companies of all sizes are continuing to upgrade to next-generation fiber to the home technologies, according to the Fiber-to-the-Home Council Americas.
The Council today released figures prepared by the market analyst firm RVA LLC showing that 900,000 households across the U.S., Canada, Mexico and the Caribbean were upgraded to FTTH service since April 2011, as the total number of North American homes with all-fiber connections surged past eight million. The figures showed that FTTH is now being offered to 19.3 million homes on the continent.
About 95 percent of FTTH households are in the United States, which began to see a significant expansion of fiber deployment in 2004 when Verizon began upgrading to FTTH in much of its wireline footprint, but deployment in other North American countries is now beginning to rise. Canadian households now represent three percent of FTTH on the continent and the remaining two percent are in Mexico and the Caribbean.
While Verizon continues to be by far the largest FTTH provider on the continent, the number of FTTH network operators in North America is nearing 1,000, as an increasing number of small and medium-sized incumbent telephone companies, most located in rural and small town areas, swap out their copper plant with fiber so they can offer faster Internet speeds and a video service to stay competitive and bring next-generation connectivity to their communities. Also building FTTH networks are a variety of competitive broadband companies, municipalities and public electric utilities. The vast majority of FTTH network operators serve fewer than 10,000 subscribers.
“The pure numbers of FTTH providers and their diversity is something that is uniquely North American. No other region of the world is seeing this,” said Michael Render, President of RVA.
In a recent RVA survey, 58 percent of FTTH providers reported seeing increased local economic activity related to the availability of more robust, all-fiber networks they have deployed.
“The notion that the upgrade to FTTH can be a catalyst for economic development is precisely what is driving this enormous interest in high-speed fiber we are seeing at the community level across North America,” said Heather Burnett Gold, President of the FTTH Council Americas. “Civic leaders in communities of all sizes have a sense that more bandwidth means more opportunities for economic progress.”
“These latest numbers underscore that phenomenon in two ways – they show that smaller telecoms are continuing to upgrade to FTTH and that many are indeed seeing a positive economic impact in their communities after they deploy,” she added.
The RVA survey also found that, on average, government supported FTTH stimulus projects are now 38 percent complete, with indications that many will start connecting subscribers this year. Environmental reviews and heavy demand for fiber optic cable were cited as reasons for the delays.
Meanwhile, the survey found growing activity among FTTH providers in fiber to the cell tower construction, with more than 1500 towers connected by small, single state providers in 2011.
About the FTTH Council North America:
Now in its 11th year, the Fiber-to-the-Home (FTTH) Council is a non-profit association consisting of companies and organizations that deliver video, Internet and/or voice services over high-bandwidth, next-generation, direct fiber optic connections – as well as those involved in planning and building FTTH networks. Its mission is to accelerate deployment of all-fiber access networks by demonstrating how fiber-enabled applications and solutions create value for service providers and their customers, promote economic development and enhance quality of life. More information about the Council can be found at www.ftthcouncil.org.
