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40% of Service Providers Planning to Offer Gigabit Internet by 2017

Date:Jul 24,2015
According to the newest study by Infonetics Research, more than 40% service providers are planning to offer Gigabit Internet by 2017.
 
 PRLog - March 13, 2015 - TUKWILA, Wash. -- According to the latest broadband market research report, " VDSL, G.Fast, and Next-Gen FTTH Strategies and Vendor Leadership Survey"of Infonetics, now part of IHS Inc. (NYSE: IHS), the percentage of service providers planning to offer average broadband speeds of 1 Gbps to residential subscribers will rise from 15 percent in 2015 to 40 percent by 2017. In addition, this report refers that 66% of subscribers currently access respondents’ broadband networks using copper technologies, while 35% gain entry via fiber; the percentages will move in opposite directions this year, with copper dropping and fiber gaining. Meanwhile, the study cites cost of deployment as a factor: half of respondents either have no plans to deploy or are unsure if they will deploy FTTdp (fiber to the distribution point) and/or G.fast technologies.
 
"For many service providers, growth in broadband revenue has more than offset the losses from declining voice services. Fixed broadband services, driven in part by the growth in online video services, have some of the highest margins of any services. Thus, service providers continue to invest strategically in their fixed broadband networks to increase speeds offered to residential and business customers and to increase the number of additional services they can offer, including multiscreen video, home automation, and home security." said, Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research.
 
Although this servey only cover 20 operators of the world, the research results may indicate that with the increasing demands of speed and broadband, the network operators will more prefer to FTTH, particularly within the context of gigabit broadband. Actually, the Gigabit Internet is the trend of globle FTTH. On the one hand, the 100M Internet has developed for a long time, and the demands of higher broadband and faster speed promote the development of Gigabit's. On the other hand, as more service providers offer the Gigabit Internet, related technologies will be more mature, and FTTH will be more widely applied. Predictably, in the next few years, maybe in 2018 or 2019, more countries and more network operators will join this broadband upgrade plan and develop their FTTH item.
 
At the technical level, PON (passive optical network) is the key technology to support this development, such as the WDM-PON and 10G-PON technologies. Particularly WDM-PON, it offers a more cost-effective solution for the Gigabit FTTH than 10G-PON as the WDM technology offer higher broadband. It is no doubt that after 2-3 years, the technologies of WDM-PON will be more mature, and the cost of deploying Gigabit FTTH will be lower. Meanwhile, equipment with high integration, flexibility and cost-effective are needed to satisfy the requirements of development which offer opportunities and challenges for the optical networking equipments or components vendors.

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