• Embed Doc
  • Copy Link
  • Readcast
  • Collections
  • CommentGo Back
Download
 
 
www.ftthcouncil.org
I.
 
I
NTRODUCTION
A
ND
M
ETHODOLOGY
 
Since 2001, RVA LLC has surveyed North Americancommunications providers in order to determine thegrowth in fiber-to-the-home. Partnering with theFTTH Council North America, RVA releases twomarket estimates annually (Q1 in March and Q3 inSeptember).Fiber-to-the-home (FTTH), sometimes called fiber-to-the-premises (FTTP), refers to a type ofcommunications network where fiber-optic cable isinstalled all the way to the
individual living unit.
Othersystems using fiber optics for only
part 
of thenetwork, such as fiber to the curb (FTTC), fiber to thenode (FTTN), fiber to the last amplifier (FTTLA), fiberto the building (FTTB), hybrid fiber coax (HFC), etc.,are not included in the data for this report. Suchpartial systems contain a final leg of the broadbandjourney via another type of media, typically copperwire or coaxial cable, which greatly limits thebandwidth possible over the system. Because fiber-optic cables allow much faster and more efficienttransfer of data than copper does, end-to-end fiber-optic systems facilitate much higher bandwidthcapacity in both directions.It is important to note that FTTH does not refer solelyto Internet connections. Active fiber can also servevoice services, paid video services, and even meterreading connections, and can be delivered either as asingle service, or more commonly, in multiple servicesto fiber-optic lit homes.The methodology utilized for this study involved amulti-faceted review of the market using extensiveprimary research. While FTTH vendors were alsointerviewed, the research primarily relied on a bottom-up methodology based on interviews withrepresentatives of many FTTH providers. To date in2011, RVA has surveyed more than 360 NorthAmerican providers and potential providers viaInternet, telephone, and mail surveying methods.(Published data from large public providers has alsobeen utilized.)
II.
 
R
EVIEW
O
F
F
INDINGS
 
A.
 
FTTH
 
M
ARKET
S
IZE
Homes Passed 
 
FTTH became commercially viable in about 1998.RVA’s first survey of the market estimated just over19,000 homes passed with FTTH in September 2001.The number of homes passed has multiplied morethan 1,000 times since that point, and as of March 30,2011, there are now approximately 20.9 millionhomes passed in North America.
North American FTTH Status – March 31, 2011
 
NORTH AMERICAN FTTH STATUS - MARCH 31, 2011 
 
2
www.ftthcouncil.org
The term “homes passed” in this report means the
actual number of homes where a fiber connection is technically available.
About 97% of this NorthAmerican activity has been in the United States todate.
Homes Marketed 
 
The estimated number of actual FTTH homesmarketed to consumers is approximately 19.3 millionas of March 30, 2011. The term “homes marketed”refers to the number of homes that are actively beingmarketed with FTTH. There is sometimes a delaybetween technically being able to serve consumersand tangibly marketing to them. This is especiallytrue for large builds. In certain instances, providersmay choose to avoid marketing to a specific area untilthe entire area is ready for service.
Homes Connected 
 
The number of homes actually connected with lit fibernow exceeds 7 million.
- 5,000,000 10,000,000 15,000,000 20,000,000Homes ConnectedHomes MarketedHomes Passed
North American FTTH HomesMarch 30, 2011
 See Appendix for actual numbers by year.
Video Homes Connected 
 
The number of homes serviced with traditional paidvideo channels over end-to-end fiber has nowreached 5 million.Verizon and many smaller FTTH providers offertelevision via fiber. In some cases this is via achannel lineup of RF video. More often, it is via an“IPTV” methodology.
North American FTTH Video HomesCumulative
0123456
Sep '01Mar '02Sep '02Mar '03Sep '03Mar '04Sep '04Mar '05Sep '05Mar '06Sep '06Mar '07Sep '07Mar '08Sep '08Mar '09Sep '09Mar '10Sep '10Mar '11Millions
 
FTTH Growth 
 
While still relatively strong, FTTH growth has slowedsomewhat since 2008.
FTTH Homes Passed & ConnectedAnnual Change – North America
0500,0001,000,0001,500,0002,000,0002,500,0003,000,0003,500,0004,000,0004,500,000Sep'01Sep'02Sep'03Sep'04Sep'05Sep'06Sep'07Sep'08Sep'09Sep'10Sep'11Homes Passed Homes Connected
Forecast
 Slower growth in the number of homes passed overthe past two years is primarily due to Verizon slowingtheir network build and turning attention to marketingconnections as they get closer to their first FTTHproject targets.Other factors include general economic conditions,and the fact that the federal stimulus legislation mayhave had unintended negative consequences in 2009and 2010. Many interviewed in those years felt thestimulus program caused some projects to be put onhold while the providers evaluated the possibility ofpublic funding.Annual build rates are expected to stabilize andgrow slightly in 2011 as U.S. projects from non RBOC
 
3
www.ftthcouncil.org
providers accelerate, and fairly large projects inCanada continue to build out.U.S. growth in 2011 is a result, in part, of stimulusmoney now starting to flow to FTTH projects. Basedon data collected from more than 50 random surveyswith FTTH ARRA stimulus award recipients, RVAestimates that a total of 38% of FTTH stimulusprojects are currently underway, and another 36% arepreparing to start. The remainder of the ARRAprojects are in various stages of engineering andenvironmental approval. (A small percentage ofthose interviewed have actually declined funding dueto unexpected factors, such as the high wage ratesrequired under regulations for such Federal grants.)
Status of ARRA FTTH Stimulus Grants
0% 5% 10% 15% 20% 25% 30% 35% 40%Declined FundingConstruction Planned in FutureEngineeringEnvironmental AssessmentAwaiting RUS ApprovalPreparing to Start ConstructionIn Construction
 
B. D
EPLOYMENTS
B
Y
T
YPE
O
F
P
ROVIDER
 
Regional Bell operating companies (primarily Verizon)represent over 73% of all North American FTTHconnections. (It should be noted that total FTTHconnections estimated for Verizon includes reportedFioS Internet connections, plus an estimate of FioStelevision-only connections.)While Verizon is the largest U.S. FTTH provider by avery large margin, there is actually a very long tail ofother providers. As of March 30, 2011, RVAestimates that there are more than 770 providers ofFTTH in North America.Of these non RBOC suppliers, smaller incumbenttelephone suppliers (ILECs) account for 61% of theprimary base. Most of these are classified as “Tier 3”ILECs with a market concentration in one limitedgeographic area. Some of these also haveassociated competitive or CLEC activity. True facilities-basedcompetitive providers (CLECs) and publicly ownedsystems (MUNIs) together account for 24% of thetotal. The remaining builds are from integratorsworking with developers, MSO/cable TV companies,and electric utilities and coops.
FTTH Non RBOC Deployments by Provider Type
0% 10% 20% 30% 40% 50% 60% 70%Electric Utility/Co-opMSO/CableDeveloper/IntegratorMunicipality/PUDCLECILEC
 
C.
 
O
VERALL
P
ENETRATION
 
FTTH has now reached over 18% penetration of U.S.households in terms of homes passed and 6% interms of homes connected.
FTTH PenetrationCumulative – United States
0.00%4.00%8.00%12.00%16.00%20.00%
Mar '02Sep '02Mar '03Sep '03Mar '04Sep '04Mar '05Sep '05Mar '06Sep '06Mar '07Sep '07Mar '08Sep '08Mar '09Sep '09Mar '10Sep '10Mar '11
Homes Passed Homes Connected
 
D.
 
FTTH
 
TAKE-RATES
The overall take-rate for FTTH services continues toincrease. (Rates declined in a period from March
of 00

Leave a Comment

You must be to leave a comment.
Submit
Characters: ...
You must be to leave a comment.
Submit
Characters: ...