Telecom Pragmatics Predicts: FTTH to Get Biggest Share of Stimulus Funds

  • Broadband Stimulus
  • FTTH

NASHVILLE -- Research firm Telecom Pragmatics believes that fiber to the home will substantially dwarf DSL, wireless, and other solutions when it comes to raking in broadband funding from the American Recovery and Reinvestment Act.

Large construction firms hired by the independent telcos will get the biggest amount of money, says Telecom Pragmatics, because about 60 percent of FTTH costs are accounted for by construction. Other likely beneficiaries include Corning, which is the dominant optical fiber provider in the US and a major supplier of other outside plant equipment; and Calix, which is the market share leader in providing access network equipment to the independent telcos. Because Calix is a private company, Telecom Pragmatics says, it can afford to put market share ahead of margin.

Others that will benefit include FTTH electronics manufacturers like Enablence, as well as vendors of passive gear for these networks. Also, given the relatively large amount of funds devoted to the “middle mile,” optical transport suppliers will substantially benefit. Cable TV providers, too, could spend a fair amount upgrading their hybrid fiber/cable networks. And finally, there should be significant sales of headend gear as well as routers for the backend.


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