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Telcos saving serious money by upgrading to FTTH, survey finds

Small and medium-sized telephone companies that have upgraded their networks to all-fiber are reporting operational cost savings averaging 20% annually, according to a study commissioned by the Fiber to the Home Council Americas, a non-profit...


April 4, 2013  


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Small and medium-sized telephone companies that have upgraded their networks to all-fiber are reporting operational cost savings averaging 20% annually, according to a study commissioned by the Fiber to the Home Council Americas, a non-profit group of nearly 300 companies and organizations.

The survey of more than 350 telecommunications providers across North America, conducted by the market analyst firm RVA LLC, also pointed to a “steady drumbeat of FTTH deployment activity,” with the number of homes that can access FTTH networks increasing by 17.6 over a year ago to 22.7 million.

The number of households connected with FTTH now stands at 9.7 million, an increase of more than 20% over April 2012.

In the survey, the council asked telecom managers to report any cost savings they are experiencing in maintaining their network infrastructure once they upgraded from copper in the last mile to all-fiber. On average, respondents estimated those savings to be 20.4%, largely because of a decrease in ongoing repair and maintenance.

“This latest survey shows not only the continued build-out of high-bandwidth fiber to the home networks in North America, but also provides one reason why hundreds of small and medium sized telcos have been upgrading to fiber — it saves them real money in the long run,” said Heather Burnett Gold, the FTTH Council’s President.

According to the organization, bandwidth demand is expected to continue to accelerate along with the emergence of sophisticated online applications for video over the Internet, online multi-player gaming, online education, work-at-home and telemedicine, as well as is the proliferation of Internet-connected devices in homes and businesses.