Telcos Saving Serious Money by Upgrading to FTTH

WASHINGTON, DC – Small and medium-sized telephone companies that have upgraded their networks to all-fiber are reporting operational cost savings averaging 20 percent annually, according to a study commissioned by the Fiber to the Home Council Americas, a non-profit group of nearly 300 companies and organizations dedicated to expanding the availability of ultra high speed, all-fiber broadband.

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 percent 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 percent 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 percent, largely because of a decrease in ongoing repair and maintenance.

In recent years, fiber to the home connections have been expanding as telephone companies in particular look to improve their competitiveness by offering television programming and faster Internet, and as broadband providers in general prepare for ever-increasing consumer demand for more bandwidth and faster networks. 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.

Additional Findings

  • Verizon in the US and Bell Aliant in Canada together are responsible for a large share of the FTTH connections on the continent.

  • Nearly 600 small and medium-sized telephone companies that have upgraded at least part of their subscriber base to all-fiber.

  • One hundred municipalities have deployed FTTH networks as a public utility.

  • FTTH networks have also been deployed by a number of competitive broadband service providers.

  • More than 640,000 North American households now receive 100 Mbps service through an FTTH network.

  • A number of FTTH providers are now offering gigabit connectivity to homes, most notably Google Fiber in Kansas City and EPB Chattanooga in Tennessee.

  • In Canada 540,000 homes are now connected into all-fiber networks, compared with about 100,000 just three years ago.

The survey also noted renewed activity among real estate developers in building FTTH networks in planned communities, tracking the recent rebound in the housing construction market and a trend by builders of planned communities to install all-fiber networks in their new developments.


Read what others have to say, and share your own thoughts with the community.

2000 characters remaining

© 2023 Broadband Properties, LLC

Privacy Policy

Web Design and Web Development by Buildable